REG - Jadestone Energy PLC - Malaysia Drilling and Corporate Update

Jadestone EnergyAnnouncement

04/12/2023 07:00

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RNS Number : 5375V  Jadestone Energy PLC  04 December 2023

 

Strong Results from Malaysia Drilling Campaign and Corporate Update

 

4 December 2023 - Singapore: Jadestone Energy plc ("Jadestone", the "Company"
or the "Group") an independent upstream production company focused on the
Asia-Pacific region, announces that the final well in the Company's 2023 East
Belumut field drilling campaign offshore Peninsular Malaysia has now been
completed.  The overall programme has delivered results significantly ahead
of expectations. The Company is also pleased to provide an update on Group
production, progress on the Akatara project and recent crude oil liftings.

 

East Belumut Infill Drilling Campaign (Jadestone 60% working interest and
operator)

 

The fourth and final well in the East Belumut  infill drilling campaign is
currently being tested after reaching c.4,600 metres measured depth in the
south west of the field.  This is approximately 730 metres measured depth
more than originally planned, due to the better than expected oil column
encountered at the toe of the well, and the longest reach horizontal well ever
drilled in the field.  Overall, a 1,700 metre horizontal section was drilled
in the target formation, aided by successful optimisation of the well
trajectory using geo-steering tools. The well is expected to produce at
initial rates in excess of 3,500 bbls/d.

 

Combined with the three wells drilled to date, which are currently producing
at an aggregate gross rate of c.7,000 bbls/d, the results of the East Belumut
infill campaign have far exceeded expectations, which were for initial gross
aggregate rates from all four wells of 3,500 bbls/d.  The drilling capex will
be cost recovered and pay-back is expected by Q2 2024 next year.  The well
results are already being used to update the geological model for the East
Belumut field, will have a positive impact on reserves, and are likely to
provide a number of new infill targets for future drilling campaigns.

 

Group Production Update

 

Since the Company's most recent announcement on 13 November 2023, overall
group production performance has continued to be robust, averaging c.20,000
boe/d during this period. The main factors driving this positive outcome are:

 

·    Recent average production of c.7,000 boe/d net (11,200 boe/d gross)
from the Peninsular Malaysia assets, in large part due to the success of the
infill drilling campaign on the East Belumut field detailed above; and

·    Average production of c.7,500 bbbls/d from Montara, based on strong
well performance and FPSO uptime.

 

Overall, since 1 April 2023, Group production has averaged c.14,900 boe/d,
equivalent to an average of c.13,500 boe/d year-to-date.  As previously
reported, production is now expected to be towards the upper end of the April
to December 2023 guidance range of 13,500 - 15,000 boe/d (equivalent to an
annual 2023 guidance range of 12,600 - 13,700 boe/d). This incorporates a
planned shutdown for one week at Montara in early December for compressor
maintenance.

 

2023 guidance for capex (US$110-125 million) and operating costs 1  (#_ftn1)
are also reiterated.

 

Akatara

 

The Akatara development project is currently 87% complete and
pre-commissioning activities have commenced, with the project remaining on
schedule for first gas before mid-2024. Approximately 1,600 workers are
currently on site, with c.3.2 million safe manhours worked to date on the
Akatara project.

 

The mobilisation of the Elang-1 rig to the Akatara project is now expected in
the third week of December 2023 (previously end of November) to workover five
existing wells which will provide the raw gas feed into the Akatara Gas
Processing Facility. This change in timing will not impact the first gas date.

 

Liftings

 

Since the beginning of Q4 2023, the Company has lifted approximately 1.4 mmboe
generating significant revenues.  A further 370,000 boe are expected to be
lifted in December, with proceeds expected to be received before year-end.

 

Paul Blakeley, President and CEO commented:

 

"The East Belumut drilling programme has proved to be very successful,
significantly exceeding our pre-drill expectations and testament to the hard
work and enthusiasm of the many people across the business involved in this
campaign.  This is our core strategy at work, having acquired the interests
in 2021 and now starting to add value through our differentiated view of the
subsurface potential.  These results will significantly expand the scope for
further infill drilling on East Belumut and I expect will generate a number of
well campaigns for the future.

 

Production performance across the portfolio has been solid recently,
underpinned by strong performance in Malaysia and stabilisation of production
at Montara.  We will continue to work hard to make this "business as usual"
in the future.  At Akatara, the project continues to make good progress and
remains on schedule, still comfortably targeting first gas in the first half
of next year."

 

-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 does not include inside information.

 

Glossary

 

 bbls    barrels of oil
 bbls/d  barrels of oil per day
 boe     barrels of oil equivalent
 boe/d   barrels of oil equivalent per day
 mmboe   million barrels of oil equivalent

 

 1  (#_ftnref1) Underlying operating cost guidance is US$180-210 million.
Underlying operating cost guidance excludes non-recurring items and certain
costs such as workovers, transportation, and expenditure associated with
non-producing assets offshore Malaysia.  These excluded items are included in
the reported production costs in the Group's statement of profit or loss, and
are expected to total US$65-75 million in 2023.

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