Jadestone Energy has entered into a Gas Sales and Purchase Agreement with PV Gas, a subsidiary of Vietnam's state-owned PetroVietnam, for the supply of natural gas from the Nam Du and U Minh offshore gas fields in Vietnam.

The agreement stipulates the terms for gas sales, with production targeted to commence by the end of 2028, according to the approved field development plan.

Under the terms of the deal, the daily contracted supply volume is 80 million standard cubic feet, which equates to approximately 13,000 barrels of oil equivalent per day. The maximum supply volume is set at 110% of the contracted amount, with a take-or-pay threshold of 90%.

T. Mitch Little, President and CEO of Jadestone Energy, stated, "The execution of this agreement represents a pivotal moment for Jadestone. After years of dedicated effort, we are now positioned to advance the Nam Du/U Minh project development, which will substantially enhance our portfolio and support our growth ambitions."

"With all key commercial and technical approvals now in place, and with key personnel for the Jadestone Vietnam project delivery team recently appointed, we are focused on rapidly progressing the project execution phase," he added.

The company further noted that the agreement includes pricing terms comparable to historical gas import prices in Vietnam and features a fixed annual escalation mechanism.

The Nam Du and U Minh gas fields are situated in shallow waters off the southwest coast of Vietnam. They hold independently audited total proven plus probable reserves of 32 million barrels of oil equivalent.

Jadestone indicated that the entire license area potentially contains up to 1.5 trillion cubic feet of unrisked gas initially in place, offering potential for production extension or increases beyond the initial development phase.