Jadestone Energy Divests Sinphuhorm Asset in Thailand for $39.4 Million
Why we think this is good
The divestment of Jadestone's 9.52% interest in the Sinphuhorm gas field in Thailand represents a strategic move to focus on the company's core operating areas in Australia, Malaysia, Indonesia, and Vietnam. While the sale will result in a reduction in Jadestone's production guidance for 2025, the $39.4 million in proceeds can be used to strengthen the company's balance sheet and fund growth initiatives in its key markets. The transaction appears to be a clean, straightforward deal with no significant regulatory or timeline concerns, and the sale price represents a material portion of Jadestone's market capitalization, suggesting it is a positive outcome for shareholders.
Key Points
- Jadestone Energy has divested its 9.52% interest in the Sinphuhorm gas field in Thailand to PTTEP for $39.4 million, with a further $3.5 million contingent on licence extensions
- The sale will result in a revision to Jadestone's 2025 production guidance, from 19,000-22,500 boe/d to 18,000-21,000 boe/d
- Jadestone will focus its future growth initiatives on its operated positions in Australia, Malaysia, Indonesia and Vietnam
- The transaction represents a strategic move to optimize Jadestone's portfolio and strengthen its balance sheet
Summary
Jadestone Energy has divested its 9.52% interest in the producing Sinphuhorm gas field in Thailand to PTTEP for a cash consideration of $39.4 million, with a further $3.5 million contingent on future licence extensions. The sale will result in a revision to Jadestone's 2025 production guidance, from 19,000-22,500 boe/d to 18,000-21,000 boe/d. The proceeds will be used to strengthen Jadestone's balance sheet and deliver accretive growth in its core areas of Australia, Malaysia, Indonesia and Vietnam.