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INDONESIA

Lemang PSC

Jadestone has an operated 100% interest in the Lemang PSC, onshore Sumatra, Indonesia

 

Jadestone has an operated 100% interest in the Lemang PSC, located onshore Sumatra and close to major gas transportation infrastructure. The Lemang PSC includes the Akatara gas field, which was previously developed as oil field and then decommissioned. Jadestone is pursuing a low-cost development of the field to produce its gas resources, condensate and LPG, based on efficient re-use of existing wells and infrastructure, thereby minimising incremental impact on the local environment.  Several further initiatives to reduce GHG emissions and enhance the environmental performance of the Akatara development are being considered as part of the overall development. Jadestone anticipates a gross development cost for the field prior to first gas of US$94 million.

The local government has a back-in right of up to 10% (uncarried interest) from the time of development sanction, which is expected to be exercised.

The main gas-bearing reservoirs in the Akatara field are the UTAF-B formations, which were deposited in shoreface to foreshore marine environments and are expected to be laterally continuous across the field. The range of porosity and permeability in the UTAF reservoirs is 17-28 % and ~120-9,610 mD respectively.

The Akatara gas field has been independently estimated to contain a 2C gross resource (pre local government back-in right) of 63.74 bscf of sales gas, 2.45 mm bbls of condensate and 5.64 mm boe of LPG, equating to a combined 18.7 mm boe of gross resource.1

On 1 December 2021, Jadestone announced that it had signed a gas sales agreement (“GSA”) for the Akatara field with PT Pelayanan Listrik Nasional Batam as buyer. The key terms of the Akatara GSA are detailed below:

  • Daily contract quantity (“DCQ”) of 20.5 BBtu/d commencing in H1 2024
  • Gas price of US$5.60/mmBtu
  • Annual take-or-pay quantity set at 90% of the adjusted annual contract quantity
  • Maximum daily quantity set at 110% of DCQ

The Company anticipates that the Akatara gas field will deliver a gross plateau production of approximately 6.1 kboe/d, based on an estimated gas production rate of 18.8 mmscf/d gas (gross), plus associated condensate and LPG, for a duration of seven years.

1 Based on an independent review of contingent resources by ERCE, an independent qualified reserves auditor, dated 17 March 2021.

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