REG - Jadestone Energy PLC - Financing and Operational Update

Jadestone EnergyAnnouncement

09/10/2023 07:15

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RNS Number : 3897P  Jadestone Energy PLC  09 October 2023

 

Financing and Operational Update

 

9 October 2023 - Singapore: Jadestone Energy plc ("Jadestone", or the
"Company") an independent oil and gas production company focused on the
Asia-Pacific region, is pleased to provide the following update on the
Company's reserve-based lending ("RBL") facility and recent operational
highlights.

 

RBL Facility Update

 

The bi-annual redetermination process for Jadestone's US$200 million RBL
facility has concluded and the Company is pleased to report the following
increases in borrowing capacity over the next 12 months:

 

·    Effective 1 October 2023 to the next redetermination date on 31 March
2024, the borrowing capacity exceeds the maximum facility amount. As such, the
borrowing capacity for the upcoming 6-month period will be US$200 million
(previously forecasted at c.US$190 million).

·    For the subsequent 6-month period (Q2-Q3 2024), the borrowing
capacity will be the lower of the approved banking model as of 31 March 2024
or US$150 million (previously forecasted at US$99 million). The current model
projects a borrowing capacity for this period of c.US$150 million, excluding
capex add-back and subject to changes in model assumptions.

 

The increases in borrowing capacity result from the approval of the Company's
waiver request to raise the Akatara development cap from 40% to 60%, effective
from 1 October 2023 to the September 2024 redetermination date. The
development cap represents Akatara's maximum percentage contribution to the
total borrowing base prior to the asset's completion test, after which the
Company's borrowing base is expected to return to US$200 million.

 

The increase in borrowing capacity over the Q2-Q3 2024 period means that the
Company's liquidity position during this period is currently projected to be
in excess of c.US$100 million, which includes the Company's undrawn US$31.9
million working capital facility.

 

Operational Update

 

Since resuming production on 2 September 2023, Montara has averaged c.7,000
bbls/d, benefitting from some ongoing flush production and active management
of the Montara H2, H3 and H4 wells to optimise the oil to gas ratio.  It is
expected that, over time, average oil production rates will normalise back
towards previous guidance in the 6,000 - 6,500 bbls/d range.

 

The Akatara development project is now c.70% complete, delivering on the
end-September 2023 progress target of 65%. Long-lead time items continue to
arrive at site on schedule and the project remains on track for commissioning
in the first quarter of 2024 and first gas before mid-2024.

 

The first well in the East Belumut infill campaign is maintaining higher than
expected production levels as the drilling campaign continues.

 

 

 

Paul Blakeley, President and CEO commented:

 

"We always believed that, with time, we could resolve the temporary dip in the
RBL borrowing base availability in mid-2024. The waiver approval shows the
constructive working relationship we have with our RBL banks and demonstrates
the banks' confidence in Jadestone's ability to deliver. I would like to thank
the RBL banks and the wider Jadestone team for working together to deliver
this successful outcome. As a result, Jadestone is projected to have
significant liquidity prior to the Akatara field commencing production, after
which our borrowing base availability is expected to increase further, as we
move into a period of high cash generation, in turn supporting our growth
ambitions.

 

Recent operational performance across the business has been encouraging, with
total production averaging c.17,000boepd during the month of September, and
also continued progress at Akatara, where we remain on budget and schedule
while meeting all key milestones. We are focused on sustaining this momentum
over the remainder of 2023 and into 2024, underpinning our aim of significant
production and cash flow growth in the near-term."

 

-ends-

 

For further information, please contact:

 

 Jadestone Energy plc
 Paul Blakeley, President and CEO                      +65 6324 0359 (Singapore)
 Bert-Jaap Dijkstra, CFO

 Phil Corbett, Investor Relations Manager              +44 (0) 7713 687467 (UK)
                                                       ir@jadestone-energy.com (mailto:ir@jadestone-energy.com)

 Stifel Nicolaus Europe Limited (Nomad, Joint Broker)  +44 (0) 20 7710 7600 (UK)
 Callum Stewart
 Jason Grossman
 Ashton Clanfield

 Jefferies International Limited (Joint Broker)        +44 (0) 20 7029 8000 (UK)
 Will Soutar

 Cameron Jones

 Camarco (Public Relations Advisor)                    +44 (0) 203 757 4980 (UK)
 Billy Clegg                                           jse@camarco.co.uk (mailto:jse@camarco.co.uk)
 Andrew Turner

 Elfie Kent

 

About Jadestone Energy

Jadestone Energy plc is an independent oil and gas company focused on the
Asia-Pacific region.  It has a balanced and increasingly diversified
portfolio of production and development assets in Australia, Malaysia,
Indonesia, Thailand and Vietnam, all stable jurisdictions with a positive
upstream investment climate.

 

Led by an experienced management team with a track record of delivery, who
were core to the successful growth of Talisman Energy's business in
Asia-Pacific, the Company is pursuing a strategy to grow and diversify the
Company's production base both organically, through developments such at
Akatara in Indonesia and Nam Du/U Minh in Vietnam, as well as through
acquisitions that fit within Jadestone's financial framework and play to the
Company's strengths in managing maturing oil assets. Jadestone delivers value
in its acquisition strategy by enhancing returns through operating
efficiencies, cost reductions and increased production through further
investment.

 

Jadestone is a responsible operator and well positioned for the energy
transition through its increasing gas production, by maximising recovery from
existing brownfield developments and through its Net Zero pledge on Scope 1
& 2 GHG emissions from operated assets by 2040. This strategy is aligned
with the IEA Net Zero by 2050 scenario, which stresses the necessity of
continued investment in existing upstream assets to avoid an energy crisis and
meet demand for oil and gas through the energy transition.

 

Jadestone Energy plc (LEI: 21380076GWJ8XDYKVQ37) is listed on the AIM market
of the London Stock Exchange (AIM: JSE).  The Company is headquartered in
Singapore.  For further information on the Company please visit
www.jadestone-energy.com (http://www.jadestone-energy.com) .

 

This announcement may contain certain forward-looking statements with respect
to the Company's expectations and plans, strategy, management's objectives,
future performance, production, reserves, costs, revenues and other trend
information.  These statements are made by the Company in good faith based on
the information available at the time of this announcement, but such
statements should be treated with caution due to inherent risks and
uncertainties.  These statements and forecasts involve risk and uncertainty
because they relate to events and depend upon circumstances that may occur in
the future.  There are a number of factors which could cause actual results
or developments to differ materially from those expressed or implied by these
forward-looking statements and forecasts.  The statements have been made with
reference to forecast price changes, economic conditions and the current
regulatory environment.  Nothing in this announcement should be construed as
a profit forecast.  Past share performance cannot be relied upon as a guide
to future performance.  The Company does not assume any obligation to
publicly update the information, except as may be required pursuant to
applicable laws.

 

This announcement does not include inside information.

 

 

 

 

 

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