Jadestone Energy agreed to acquire interest in Sinphuhorm gas field and the Dong Mun gas discovery, onshore northeast Thailand.
Jadestone will acquire interests in three entities to acquire 9.52% interest in Sinphuhorm gas field. PTTEP is operator at Sinphuhorm (80.5%) and ExxonMobil Co. owns the remaining 10%. As part of the agreement, the company also will acquire 27.5% interest in APICO LLC, which owns 100% interest in the L27/43 concession containing the Dong Mun gas discovery.
Jadestone is acquiring 4.6 MMboe of 2P Reserves as of Jan. 1, 2022. Gas production is expected to be about 1,600 boe/d net to Jadestone and is contracted under a long-term high take-or-pay gas sales agreement with PTTEP.
Infill drilling at Sinphuhorm field, and development of the Dong Mun discovery is expected, according to Jadestone.
Sinphuhorm field has been developed with eleven wells, of which 10 are currently producing, drilled from three surface pads in the central and southern part of the field. Further development well locations have been identified. Pressure depletion trends confirm lower connectivity between the northern and southern parts of the field, with further development potential existing to the north. Sinphuhorm well pads are tied back to a central gas plant with 140 MMcfd capacity and the ability to stabilize small amounts of condensate. Gas from Sinphuhorm is exported via a 64-km pipeline to the Nam Phong power plant in northeast Thailand.
The field produced an average of 97 MMcfd in 2022 and a total of 506 bcf of gas and 2.1 MMbbl of condensate had been produced as of Dec. 31, 2021, equating to a 46% recovery factor. Scope 1 and 2 GHG intensity of Sinphuhorm operations is estimated at 7.5kg/boe of CO2e. PTTEP is exploring plans to develop a carbon capture and storage project (CCS) at the field.
Dong Mun field is an undeveloped discovery about 80 km southeast of Sinphuhorm. Gas was tested in the PNK carbonate formation (same reservoir setting as Sinphuhorm) with APICO estimating 56 bcf gross 2C contingent resources. APICO is considering developing Dong Mun through a phased approach–initially through a compressed natural gas scheme and then a small-scale LNG development.
Cash consideration on completion of the sale will be about $26.4 million plus working capital. The company estimates payback on the acquisition in about 3.5 years.
