Jadestone Energy PLC Commencement of Akatara Contractual Gas Sales

RNS Number : 5616Y

Jadestone Energy PLC

31 July 2024

 

Commencement of Akatara Contractual Gas Sales

 

31 July 2024 - Singapore: Jadestone Energy plc ("Jadestone", or the "Company"), an independent upstream company focused on the Asia-Pacific region, is pleased to provide the following update on the Akatara gas development project onshore Indonesia.

 

Since 22 June 2024, when the Company announced mechanical completion of the Akatara Gas Processing Facility (the "Facility") and the introduction of reservoir gas into the Facility, raw gas production has ranged between 3-8 mmscfd, allowing for commissioning of the Facility's systems and the start of condensate production, which has totalled c.4,700 bbls to date.

 

On 31 July 2024, following successful packing of the 17km export pipeline from the Akatara field, commercial gas sales into the regional trunkline in Sumatra commenced at a rate of c.4 mmscfd, or approximately 20% of the daily contracted quantity ("DCQ") under the Akatara gas sales agreement.  LPG production is expected to start imminently.

 

Jadestone will issue a further announcement once full DCQ (c.20 mmscfd) sales gas production is achieved, which is expected within the next two weeks.   

 

Paul Blakeley, President and CEO commented:

 

"The Akatara project has now met the key major milestone of first contractual gas sales, just over two years since the original investment decision was made and just five weeks after introducing reservoir gas into the processing facility.  Successfully commissioning a major new processing plant, producing gas, condensate and LPGs in a relatively remote location in Indonesia, is no small task and represents a significant achievement for Jadestone.  Over 7.5 million manhours without an LTI and over 40% of that delivered through local contractors only magnifies what we have accomplished.

 

On behalf of our shareholders, I want to thank all of the Jadestone employees and our contractors who have worked around the clock over the past months to address the challenges and issues that are entirely normal when commissioning a facility of this nature.  The work doesn't stop there, as we will be laser focused on refining the processes and procedures at the Akatara processing plant to deliver the highest levels of uptime.

 

This is a major milestone for our company, a new low-cost production base in Indonesia which will provide significant cash flow to the company, and benefit local economies with cleaner, lower carbon energy, jobs and potential for further investment and growth to come.  We look forward to ramping up in short order to full DCQ production within the next couple of weeks.

 

-ends-

 

For further information, please contact:

 

Jadestone Energy plc
Paul Blakeley, President and CEO	[phone] (Singapore)
Bert-Jaap Dijkstra, CFO Phil Corbett, Head of Investor Relations	[phone] (UK)
	[e-mail]
Stifel Nicolaus Europe Limited (Nomad, Joint Broker)	[phone] (UK)
Callum Stewart
Jason Grossman
Ashton Clanfield
Peel Hunt LLP (Joint Broker)	[phone] (UK)
Richard Crichton
David McKeown Georgia Langoulant
Camarco (Public Relations Advisor)	[phone] (UK)
Billy Clegg	[e-mail]
Andrew Turner Elfie Kent

 

About Jadestone Energy

 

Jadestone Energy plc is an independent upstream company focused on the Asia-Pacific region.  It has a balanced and increasingly diversified portfolio of production and development assets in Australia, Malaysia, Indonesia, Thailand and Vietnam, all stable jurisdictions with a positive upstream investment climate.

 

Led by an experienced management team with a track record of delivery, who were core to the successful growth of Talisman Energy's business in Asia-Pacific, the Company is pursuing a strategy to grow and diversify the Company's production base both organically, through developments such as at Akatara in Indonesia, Nam Du/U Minh in Vietnam and the SFA Cluster offshore Malaysia, as well as through acquisitions that fit within Jadestone's financial framework and play to the Company's strengths in managing maturing oil assets. Jadestone delivers value in its acquisition strategy by enhancing returns through operating efficiencies, cost reductions and increased production through further investment.

 

Jadestone is a responsible operator and well positioned for the energy transition through its increasing gas production, by maximising recovery from existing brownfield developments and through its Net Zero pledge on Scope 1 & 2 GHG emissions from operated assets by 2040. This strategy is aligned with the IEA Net Zero by 2050 scenario, which stresses the necessity of continued investment in existing upstream assets to avoid an energy crisis and meet demand for oil and gas through the energy transition.

 

Jadestone Energy plc (LEI: 21380076GWJ8XDYKVQ37) is listed on the AIM market of the London Stock Exchange (AIM: JSE).  The Company is headquartered in Singapore.  For further information on the Company please visit www.jadestone-energy.com.

 

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.

 

 

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