REG - Jadestone Energy PLC - Operational Update

Jadestone EnergyAnnouncement

13/11/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231113:nRSM2266Ta&default-theme=true

RNS Number : 2266T  Jadestone Energy PLC  13 November 2023

 

Operational Update

 

13 November 2023 - Singapore: Jadestone Energy plc ("Jadestone", the "Company"
or the "Group") an independent upstream production company focused on the
Asia-Pacific region, is pleased to provide the following operational update.

 

Group Production and Guidance

 

Recent production performance demonstrates the positive effect of the Group's
ongoing investment activity and recent acquisitions, delivering a more
balanced and diversified portfolio. Six assets are now in production prior to
the addition of the Akatara project in Indonesia, which remains firmly on
schedule for first gas during H1 2024.

 

Since 1 April 2023, Group production has averaged c.14,400 boe/d and has
averaged c.13,100 boe/d year-to-date.  Based on current expectations for the
remainder of 2023, production is now expected to be towards the upper end of
the April to December guidance range of 13,500 - 15,000 boe/d (equivalent to
an annual 2023 guidance range of 12,600 - 13,700 boe/d), with the following
highlights:

 

·    PM323 production in Malaysia has doubled, and is currently c.5,300
bbls/d net to Jadestone, largely from the planned infill drilling campaign on
the East Belumut field which has delivered results significantly ahead of
expectations (see below for further detail);

·    Montara has averaged c.5,700 bbls/d in recent months, with good well
performance offset by occasional brief interruptions associated with offtake
arrangements, including the replacement of a short section of offload hose at
the shuttle tanker;

·    Production from the CWLH fields continues to exceed the Company's
expectations, averaging c.2,300 bbls/d net in recent months due to strong
reservoir performance and high uptime at the Okha FPSO; and

·    PM329 production in Malaysia, Sinphuhorm in Thailand and Stag in
Australia are all broadly on plan showing the benefits of diversified
production.

 

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

 

Akatara

 

The Akatara development project is currently 83% complete and remains on
schedule for commissioning activities in the first quarter of 2024 and first
gas before mid-2024.  Approximately 1,450 workers are currently on site, with
c.2.9 million safe manhours worked to date on the Akatara project.

 

The Elang-1 rig is scheduled to mobilise to the Akatara development at the end
of November 2023 to workover five existing wells which will provide the raw
gas feed into the Akatara Gas Processing Facility.

 

Malaysia

 

·    The first well in the East Belumut infill drilling campaign on the
PM323 PSC was, as previously reported, successfully drilled and brought
onstream in September 2023 and is currently producing c.1,400 bbls/d.

·    The third well was successfully drilled and completed in late October
2023, testing at a gross rate of c.3,100 bbls/d and was subsequently brought
onstream.

·    The fourth well in the programme has also been successfully drilled
and has been tested at a gross rate of c.1,700 bbls/d in recent days.

·    As a result, the three wells drilled to date in the 2023 drilling
programme are currently producing at a gross rate of c.6,200 bbls/d,
significantly exceeding the pre-drill gross rate expectation for all four
wells of 3,500 bbls/d. Consequently, gross PM323 production has reached
c.8,800 bbls/d in recent days, or c.5,300 bbls/d net to Jadestone.

·    The Naga-2 rig will now complete the drilling of the second well in
the programme, which was temporarily suspended due to fluid losses.  The well
is expected to reach total depth in the second half of November.

·    The capex for the 2023 East Belumut drilling campaign is now
estimated at US$28 million net to Jadestone, or approximately US$7 million
(net) more than pre-drill expectations, primarily due to the extension
required to complete the drilling of the second infill well.  This increase
is reflected in the reiterated 2023 capex guidance above. The overall cost of
the drilling campaign is expected to be fully cost recovered by Q2 2024 due to
the higher rates of production seen from the wells drilled to date.

 

Liftings

 

The Company expects to lift approximately 1.6 million barrels across November
and December 2023, including a c.650,000 barrel lifting from the CWLH fields
and c.450,000 barrels from Montara.

 

Paul Blakeley, President and CEO commented:

 

"Production has strengthened recently, with the stabilisation of Montara,
strong growth from the successful Malaysia infill drilling campaign and solid
performance from all other producing assets.  The planned diversification of
the portfolio is working, providing greater resilience to our business, and
the addition of Akatara production next year will further enhance this.

 

Progress at Akatara remains on schedule and, at 83% complete, first gas has
been substantially de-risked, with pre-commissioning of certain key systems
expected to commence shortly.  The drilling programme at East Belumut has
been very successful, supporting near-term growth, and the results provide
encouragement for further drilling within the field with another four well
campaign already being considered."

 

-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.

 

 

 

 

 

 1  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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDEAKFDFSPDFEA