REG - Jadestone Energy PLC - Liquidity Enhancement and Resilient Operations

Jadestone EnergyAnnouncement

24/04/2025 07:02

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RNS Number : 0171G  Jadestone Energy PLC  24 April 2025

Successful Actions to Enhance Liquidity and Deliver Resilient Operations

 

24 April 2025 - Singapore: Jadestone Energy plc (AIM:JSE) (the "Company" and
together with its subsidiaries, "Jadestone" or the "Group"), an independent
upstream production and development company focused on the Asia-Pacific
region, has successfully concluded a number of actions to enhance its balance
sheet and is undertaking an extensive operating cost review to deliver a
resilient business throughout the oil price cycle.

 

As announced on 16 April 2025, the Group successfully concluded the sale of
its Thailand assets, receiving US$39.4 million, with a further US$3.5 million
contingent on future licence extensions. This attractive transaction
accelerated value and cashflow for Jadestone's shareholders, resulting in a
44% return on the original acquisition cost in just over two years of
ownership. The funds received were partly used to repay debt under the Group's
Reserves-Based Lending facility which, after the conclusion of the March 2025
redetermination, currently has a borrowing base of US$167 million.

 

The Group has also recently signed a new US$30 million working capital
facility with an international bank with a 31 December 2026 maturity. The
working capital facility will be used for general corporate purposes,
providing additional liquidity, if required.

 

At 31 March 2025, consolidated Group cash balances (including restricted cash)
stood at US$124.6 million, prior to incurring the majority of costs associated
with the Skua-11ST drilling campaign. Available liquidity at 31 March 2025,
pro-forma for the receipt of funds from the sale of the Group's Thailand
assets, debt repayments associated with the March 2025 redetermination and the
working capital facility, was approximately US$160 million.

 

Approximately 1.2 million barrels of the Group's oil production are hedged at
a weighted average price of US$68.64/bbl across the second and third quarters
of 2025, a premium to current Brent prices.

 

With the successful diversification of the Group's assets in recent years,
approximately 20% of revenue is now generated from the production of gas, and
lower operating cost assets, such as Akatara and CWLH, provide a balance to
the Group's later life assets, Montara and Stag. An extensive operating cost
review is underway to identify areas where greater operational efficiency can
be implemented to lower unit operating costs and extend the economic lives of
assets.

 

Portfolio performance in early 2025 has been in line with expectations.
Akatara's initial performance continues to impress. Recent Stag performance
has benefited from proactive well management, while Montara production was
ahead of expectations for the first quarter. In recent days, production from
Montara was successfully restarted after the field was shut in for a period
encompassing planned maintenance downtime, the commencement of the Skua-11ST
drilling campaign and a significant tropical low system passing the field. The
Skua-11ST well is expected to deliver an initial production rate of 3,500
bbls/d and extend the economic life of Montara by one year.

 

Adel Chaouch, Executive Chairman of Jadestone, commented:

 

"We are proactively managing Jadestone's balance sheet, with pro-forma
liquidity of approximately US$160 million at the end of the first quarter
reflecting the Sinphuhorm sale proceeds, new working capital facility and
March 2025 debt redetermination. This is a strong position from which to
execute this year's capital program, and with our hedges, weather current oil
price volatility. The sale of Sinphuhorm was the right deal at the right time
for Jadestone's shareholders, accelerating forward several years of cashflows
into a consideration that represented a 44% return on two years of ownership,
enhancing our near-term liquidity in the process.

 

In parallel with strengthening the balance sheet, we continue to focus on
maximizing the Group's longer-term performance, value generation and
resilience. We will do this through delivering safe and reliable operations at
the lowest possible cost, extending the economic lives of our assets and
making them more resilient to the oil price cycle.

 

We remain confident in the longer-term prospects of the business, and the
actions we have taken to enhance liquidity in the near-term will contribute to
the success of our strategy."

 

-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

 Peel Hunt LLP (Joint Broker)                          +44 (0) 20 7418 8900 (UK)
 Richard Crichton
 David McKeown
 Georgia Langoulant

 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 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 does not contain inside information.

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