Jadestone Energy has signed an agreement to acquire stakes in gas fields onshore Thailand from Salamander Energy (S.E. Asia), an affiliate of PT Medco Energi Internasional Tbk, for $32.5m.

Under the deal terms, Jadestone will acquire stakes in three legal entities that jointly own a 9.52% interest in the producing Sinphuhorm gas field.

PTTEP owns an 80.5% interest in the Sinphuhorm gas field development project while Exxon owns a 10% stake.

Jadestone will also purchase a 27.5% interest in APICO LLC, which owns a 100% interest in the L27/43 concession comprising the Dong Mun gas discovery.

APICO also owns 100% of the L15/43 concession.

Jadestone Energy president and CEO Paul Blakeley said: “While modest in scale, this opportunistic tuck-in acquisition is low cost, low emissions intensity, and very low decline production from the onshore Sinphuhorm gas field.

“The asset is an excellent addition to our portfolio, diversifying our existing production base, and is a first important step towards building a significant natural gas position within our portfolio as part of our energy transition strategy.

“Furthermore, these assets carry minimal abandonment liabilities and are administered under very attractive Thai I PSC terms, with recent extensions to both the licence and the GSA.”

The transaction is planned for completion in February 2023.

With the transaction, Jadestone will acquire 4.6 million barrels of oil equivalent per day of 2P reserves at an effective date of 1 January 2023.

The Sinphuhorm gas field, which was discovered in 1983, has been developed with 11 wells. Of these, ten wells are currently in the production phase.