REG - Jadestone Energy PLC - H1 2025 Trading Statement

Jadestone EnergyAnnouncement

24/07/2025 07:00

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RNS Number : 3221S  Jadestone Energy PLC  24 July 2025

Trading Statement for the Half-Year Ended 30 June 2025

 

Record production during H1 2025 drives upgrade to production guidance

 

24 July 2025 - Singapore: Jadestone Energy plc (AIM:JSE) (the "Company" and
together with its subsidiaries, "Jadestone" or the "Group") announces a
trading update for the half-year ended 30 June 2025. The financial information
in this update is unaudited and may be subject to further review and change.

 

Dr. Adel Chaouch, Executive Chairman of Jadestone, commented:

 

"I am pleased to report on a strong first half of 2025, where we delivered on
the commitments we set out at the end of 2024.

 

Operational excellence is a strategic priority for Jadestone. First half
production growth of over 20% year-on-year was driven primarily by
outperformance at Akatara and delivered despite the challenges at the
Skua-11ST well.  Financial discipline is our other key focus, with unit
operating costs reduced by nearly 30% year-on-year. As a result, we have
upgraded our production guidance and reduced our operating cost guidance
today.

 

Our financial position also improved during the period. Incorporating June
lifting proceeds received in early July, net debt more than halved over the
first half of the year, also benefiting from the sale of our Thailand assets
in April 2025, which accelerated value and cashflow for shareholders as we
focused our growth on Jadestone's core operated positions in Australia,
Indonesia, Malaysia and Vietnam.

 

We are building more efficiency and resilience in our existing production
base, which strengthens the foundations of our business ahead of further
growth in the Asia-Pacific region. Despite this positive performance in the
first half of 2025, Jadestone's share price continues to trade at a deep
discount to net asset value. We will continue to focus on creating value for
shareholders to ensure that the potential of our assets is fairly reflected in
our share price."

 

T. Mitch Little, Chief Executive Officer of Jadestone, commented:

 

"We have upgraded production guidance and reduced operating cost guidance,
which are a strong reflection of our ongoing work to optimize the value of our
existing assets, and in turn will positively impact our 2025 cash generation.
Through the combined benefits from these efforts, we fully expect to mitigate
the increase in our 2025 capex guidance, which is revised today due to the
previously disclosed one-off increase in the Skua-11ST well cost. We expect
that these trends will continue to benefit our shareholders beyond the current
year, while also ensuring that we maintain our steadfast commitment to
protecting our people, our assets, and the environment.

 

At the Skua-11ST well, we have made good progress, with all completion
equipment now installed and demobilization  of the drilling rig commencing.
The well is in the process of being tied-in to the Montara production
facilities, with production expected to commence in early August. We remain
confident that the high-quality reservoir section intersected by the well
should deliver initial production above the 3,500 bbls/d rate guided prior to
drilling."

 

Guidance Update

 

·    Following the strong first half 2025 production performance, and
second half contribution expected from the Skua-11ST well, 2025 production
guidance is increased to 19,500-21,500 boe/d (from 18-21,000 boe/d),
reflecting an increase of 1,000 boe/d at the midpoint of the range.

·     Given the strong focus on cost control in the first half of the
year, the 2025 operating cost range is reduced to US$240-280 million (from
US$250-300 million), reflecting a reduction of US$15 million at the midpoint
of the range.

·     As previously disclosed, the cost of the Skua-11ST drilling
program will exceed previous forecasts, partly due to factors outside of
Jadestone's control. As a result, 2025 capital expenditure guidance is revised
from US$75-95 million to US$105-115 million, reflecting an increase of US$25
million at the midpoint of the range. Learnings from the Skua-11ST drilling
campaign will be integrated into the planning of any future wells in the Skua
area, as part of Jadestone's broader focus on driving operational excellence
to improve project delivery.

·     The Group's 2025-2027 free cash flow (pre debt servicing)
guidance 1  (#_ftn1) of US$270-360 million is unchanged.

 

H1 2025 Operations Update

 

·   Continued excellent safety and environmental performance across the
Group, with Australia, Malaysia and Indonesia operations achieving an
aggregate cumulative 11.7 million manhours lost-time injury free.

·      H1 2025 average production of 20,368 boe/d (H1 2024: 16,867
boe/d), representing 21% growth year-on-year and a Group record for the first
half of the year.

¡ Strong performance from Akatara in the first half has underpinned Group
production, with gross average Akatara production ahead of plan at 5,771
boe/d, driven by 96% uptime at the processing facilities and optimization of
plant throughput.

·      H1 2025 operating costs 2  (#_ftn2) of US$112.8 million (H1 2024:
US$125.7 million), a reduction of 10% year-on-year.

¡ The reduction in operating costs and production growth year-on-year
delivered a H1 2025 unit operating cost of US$32.00/boe, a reduction of 29%
year-on-year (H1 2024: US$45.21/boe).

¡ This outstanding performance reflects the Group's ongoing focus on
enhancing operating margins and increasing the Group's resilience across a
broad range of commodity prices.

 

H1 2025 Portfolio Update

 

·     On 16 April 2025, the Group announced the divestment of its
interest in the Sinphuhorm field onshore Thailand for a total consideration of
US$39.4 million, with a further US$3.5 million in cash payable contingent on
future licence extensions. The asset was originally acquired in February 2023
for US$27.8 million. The combination of the divestment proceeds and the
US$12.5 million in dividends from Sinphuhorm during the period of ownership
represents a 44% return on acquisition.

·     The proceeds from the sale of the interest in the Sinphuhorm field
were primarily used to satisfy a scheduled repayment of the Group's
Reserve-Based Lending ("RBL") facility, improving the Group's balance sheet.

 

H1 2025 Financial Update 3  (#_ftn3)

 

·      H1 2025 revenues (post-hedging) of US$228.2 million (H1 2024:
US$185.1 million), an increase of 23% year-on-year.

·      The average realized price for oil liftings in H1 2025 was
US$77.45/bbl, a 13% reduction on H1 2024.

¡ The year-on-year decrease primarily reflects the fall in the underlying
Brent benchmark during the period. The average premium for oil sales during H1
2025 reduced from US$4.59/bbl to US$3.64/bbl, tracking the fall in Brent.

·    The average realization for condensate and LPG sales from Akatara
during the period was US$49.82/boe, reflecting pricing benchmarks less
transportation costs. The average gas price realization during the period was
US$5.59/mcf (H1 2024: US$1.64/mcf), reflecting a full period of sales from the
Akatara field.

·     H1 2025 capital expenditure of US$69.6 million (H1 2024: US$51.1
million), the majority of which relates to the Skua-11ST drilling campaign
offshore Australia.

·      Net debt at 30 June 2025 was US$107.6 million (31 December 2024:
US$104.8 million), comprising US$59.2 million of cash (including restricted
cash) and US$166.7 million of debt. The net debt figure at 30 June 2025
excludes US$62.5 million from June 2025 liftings received in early July
2025. 4  (#_ftn4)

·     In April 2025, the Group closed a US$30.0 million working capital
facility with a maturity date of 31 December 2026.

·     The Group has recently entered into hedges covering 1.8 million
barrels of oil production over the 12 months ending 30 September 2026, at an
average Brent price of US$69.92/bbl (excluding premiums).

 

Summary 5  (#_ftn5)

 

                                                H1 2025       H1 2024
 Group production               boe/d           20,368        16,867

 Liftings
 - Oil, condensate and LPGs      million bbls   2.9           2.2
 - Gas                          bcf             3.5           0.6

 Average oil price realization  US$/bbl         77.45         88.73
 - Brent                        US$/bbl         73.81         84.14
 - Premium                      US$/bbl         3.64          4.59
 Average gas price              US$/mcf         5.59          1.64

 Revenues (post hedging)        US$ million     228.2         185.1
 Total operating costs          US$ million     112.8         125.7
 Capital expenditure            US$ million     69.6          51.1

                                                30 June 2025  31 December 2024

 Crude inventory 6  (#_ftn6)    bbls            113,809       324,573
 Net underlift 7  (#_ftn7)      bbls            303,061       392,166
 Net debt                       US$ million     107.6         104.8

 

-ends-

 

For further information, please contact:

 

 

 Jadestone Energy plc
 Phil Corbett, Head of Investor Relations              +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

 Berenberg (Joint Broker)                              +44 (0) 20 3757 4980 (UK)
 Ciaran Walsh
 Dan Gee-Summons
 Yasmina Benchekroun

 Camarco (Public Relations Advisor)                    +44 (0) 203 757 4980 (UK)
 Billy Clegg                                           jse@camarco.co.uk (mailto:jse@camarco.co.uk)
 Georgia Edmonds
 Poppy Hawkins

 

About Jadestone Energy

 

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

 

The Company is pursuing a strategy to grow and diversify the Company's
production base both organically, through developments such as Nam Du/U Minh
in Vietnam and the Puteri Cluster offshore Malaysia, 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) .

 

The information contained within this announcement is considered to be inside
information prior to its release, as defined in Article 7 of the Market Abuse
Regulation No. 596/2014 which is part of UK law by virtue of the European
Union (Withdrawal) Act 2018.

 

 1  (#_ftnref1) Based on a Brent oil price range of US$70-80/bbl (real terms
from 2025). Assumes midpoint of internal production expectations and that all
barrels produced during 2025-27 are sold in the period. Does not reflect any
capital expenditure or abandonment spend outside the Group's producing assets.
Incorporates upfront consideration from the sale of the Group's assets in
Thailand on 16 April 2025.

 2  (#_ftnref2) H1 2025 operating costs exclude non-cash inventory and lifting
adjustments. To allow for comparability with H1 2025, non-cash inventory and
lifting adjustments are excluded from the H1 2024 figure disclosed in the
table. Both H1 2024 and 2025 operating costs disclosed in the table include
certain costs previously classified as general and administrative costs.

 3  (#_ftnref3) Totals may not add due to rounding.

 4  (#_ftnref4) The Group's net debt and liquidity remains subject to several
factors, particularly the timing of receipts from oil and gas sales, capital
expenditure and scheduled repayments under the Group' RBL facility.

 5  (#_ftnref5) Totals may not add due to rounding. The Group's liftings do
not include any contribution from the Sinphuhorm asset, which was treated as
an investment in associate and hence equity accounted in the Group's
consolidated financial statements prior to its sale in April 2025.

 6  (#_ftnref6) Net Montara and Stag inventory as at 30 June 2025

 7  (#_ftnref7) Net CWLH and Peninsular Malaysia underlift as at 30 June 2025

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