REG - Jadestone Energy PLC - Guidance and Reserves Update

Jadestone EnergyAnnouncement

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RNS Number : 5179U  Jadestone Energy PLC  26 February 2026

Guidance and Reserves Update

 

26 February 2026 - Singapore: Jadestone Energy plc (AIM:JSE) (the "Company"
and together with its subsidiaries, "Jadestone" or the "Group") announces its
2026 guidance and end-2025 reserves update.

 

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

 

"Through successful organic and acquisition led growth, Jadestone has
increased its production 73% over the 2022-25 period, representing compound
annual growth of 20%. It remains our priority to extend this growth trajectory
and progress our strategic objective of being the leading independent
Asia-Pacific upstream company. The next major catalyst in our growth story is
the upcoming FDP approval for our Vietnam gas development. This will be a
meaningful milestone, allowing us to book the project's reserves and expedite
discussions with potential partners, as we continue to build momentum behind
this material organic growth opportunity creating value for all stakeholders.
 

 

2026 will be a year of continued focus on unlocking the value from our
existing portfolio, while exercising discipline and prudence in the face of
volatile oil prices. Our development activity will be focused on high return,
quick payback infill drilling within the PM323 license offshore Malaysia. The
firm program is targeting the development of approximately 2 MMbbls of oil,
net to Jadestone, with payback within a year. Depending on the results of the
first two wells, a contingent third well could also be added to this year's
program. Our commitment to this additional development activity strengthens
our case for a PM323 license extension, where advanced discussions have been
encouraging. This disciplined investment approach will reduce Group capital
expenditure in 2026 below previous expectations and will be significantly
lower than 2025 spend.

 

Following strong growth in recent years with the development of the Akatara
field, Group production is expected to be broadly flat year-on-year as the
positive impact of the PM323 campaign offsets natural decline, the 2025
disposal of Sinphuhorm and an increase in planned maintenance activities
primarily associated with the CWLH FPSO drydock. During 2025, significant
progress was made in reducing routine opex. We will continue to be relentless
in managing opex, however, we will see an increase in 2026 due to triennial
subsea maintenance work, contract renewals, the FPSO drydock at CWLH which
occurs every five years, and activity deferrals from 2025.

 

We remain committed to both operational and financial discipline as we seek to
create value for our shareholders. I'm pleased to report that we are making
good progress towards refinancing our reserves-based lending facility, which
will allow us to prioritize Jadestone's cash flow generation for growth. We
are also actively reviewing options to crystallize the value in our existing
asset base, as well as potential inorganic growth opportunities."

 

2026 Guidance 1  (#_ftn1)

·      2026 production guidance is set at 18,000-21,000 boe/d. Natural
portfolio decline is expected to be offset by the positive impact of the PM323
infill drilling campaign, offshore Malaysia, which is due to commence near the
end of Q1 2026 with first oil expected around mid-year. The Skua-10ST infill
well at Montara (previously planned for 2026) has been deferred due to oil
price volatility and to allow for the integration of further technical and
planning studies following the results of the Skua-11ST well drilled in 2025.
2026 production guidance also reflects ~55 days planned downtime at CWLH for
the maintenance related dry-docking of the Okha FPSO.

·      2026 total production costs 2  (#_ftn2) of US$260-300 million,
which includes additional costs relating to triennial subsea maintenance
programs, costs associated with the five-yearly dry-docking of the CWLH FPSO,
logistics contract renewals in Australia and costs deferred from 2025. With
the confluence of these combined activities, the Group expects 2026 will mark
a near-term peak in total production costs.

·      2026 capital expenditure of US$50-80 million. Approximately
two-thirds of 2026 capex will be directed towards development activities
primarily in Malaysia (with the upper end of the range reflecting a contingent
PM323 well) and Vietnam, with a further ~15% at CWLH while the remainder is
largely dedicated to ensuring and protecting reliability across the business.

·      In light of the 2026 guidance set out today, as well as the
Group's preliminary expectations for 2027, the Group's unlevered free cash
flow guidance 3  (#_ftn3) for the 2025-2027 period is revised to US$200-240
million at US$70/bbl Brent.

¡ In February 2025, the Group announced unlevered free cash flow guidance(3)
for the 2025-2027 period of US$270 million, based on a Brent oil price of
US$70/bbl.

¡ The revised unlevered free cash flow guidance at end-2025 is predominantly
due to the Skua-11ST cost increase, along with other minor economic and
technical factors.

¡ Every US$10/bbl move in the underlying Brent assumption changes the
2025-2027 free cash flow guidance by ±US$90 million, which is in line with
the original sensitivity given in February 2025.

·      As previously disclosed, the Group expects to record a non-cash
impairment in its year-end 2025 accounts. The non-cash impairment is estimated
at approximately US$90 million (subject to completion of the 2025 full-year
audit process). The impact of lower oil price forecasts utilized by
Jadestone's external reserves auditor are a significant contributor to the
non-cash impairment.

 

End-2025 Reserves Update

 

·      End-2025 2P reserves 4  (#_ftn4) totalled 56.2 MMboe, a decrease
of 8.3 MMboe on end-2024, primarily due to 7.0 MMboe of production in 2025 and
the remainder due to technical and economic revisions across the Group.

·      The economic lives of the Group's assets are broadly unchanged
from the dates disclosed in the 2024 Annual Report. In line with previous
disclosures, the Group does not expect significant decommissioning activity at
the Montara field before 2031 at the earliest.

·      The 2P NPV10(4) of the Group's 2P reserves at end-2025 was US$519
million, compared to US$799 million at end-2024. The year-on-year change is
primarily explained by revised oil price assumptions(4, 5  (#_ftn5) ) (~US$170
million) utilized by the Group's independent reserves auditor at year-end
2025. Lesser impacts were the reserves reduction associated with 2025
production and the disposal of Sinphuhorm, with the remainder being
attributable to asset-specific technical factors.

¡ Net of the Group's year-end 2025 net debt position of US$89 million, the 2P
NPV10 equates to a value 6  (#_ftn6) significantly in excess of the Company's
current share price.

¡ Utilizing the independent reserves auditor's oil price forecast at
end-2024, the Group's 2P end-2025 NPV10 would equate to US$692 million. The
reduction compared to the end-2024 NPV10 is due to 2025 production, minor
reserve revisions and the sale of Sinphuhorm, demonstrating the quality of the
Group's asset base together with its sensitivity to oil prices.

·      The Group has commissioned an updated Competent Person's Report
("CPR") on the Nam Du/U Minh discoveries offshore Vietnam from Sproule ERCE,
which will also include an assessment of the prospective resource within
Jadestone's existing PSCs. The results of the CPR will be announced in due
course, along with an update on the Group's wider contingent resource base.

 

-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
 Ryan Mahnke

 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 regional upstream development and operations and
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.

 

The technical information contained in this announcement has been prepared in
accordance with the June 2018 guidelines endorsed by the Society of Petroleum
Engineers, World Petroleum Congress, American Association of Petroleum
Geologists and Society of Petroleum Evaluation Engineers Petroleum Resource
Management System.

 

Shahbaz Sikandar of Jadestone Energy plc, Group Subsurface Manager with a
Masters degree in Petroleum Engineering, and who is a member of the Society of
Petroleum Engineers and has worked in the energy industry for more than 25
years, has read and approved the technical disclosure in this presentation.

 

Glossary

 

 1P Reserves           Proved Reserves. Those quantities of petroleum that, by analysis of geoscience
                       and engineering data, can be estimated with reasonable certainty to be
                       commercially recoverable from a given date forward from known reservoirs and
                       under defined economic conditions, operating methods, and government
                       regulations.
 2C Resources          Denotes best estimate of Contingent Resources
 2P Reserves           Proved and Probable Reserves. Those additional reserves which analysis of
                       geoscience and engineering data indicate are less likely to be recovered than
                       Proved Reserves but more certain to be recovered than Possible Reserves. It is
                       equally likely that actual remaining quantities recovered will be greater than
                       or less than the sum of the estimated Proved plus 2P. In this context, when
                       probabilistic methods are used, there should be at least a 50% probability
                       that the actual quantities recovered will equal or exceed the 2P estimate
 bbl                   barrel of oil
 boe/d                 barrels of oil equivalent per day
 Contingent Resources  Those quantities of petroleum estimated, as of a given date, to be potentially
                       recoverable from known accumulations by application of development projects,
                       but which are not currently considered to be commercially recoverable owing to
                       one or more contingencies.
 FDP                   field development plan
 MMbbls                million barrels of oil
 MMboe                 million barrels of oil equivalent
 NPV10                 net present value at a 10% discount rate

 

 

 

 1  (#_ftnref1) 2026 guidance reflects the increase in the Group's interest in
the PM329 PSC offshore Malaysia from 70% to 100%, following the withdrawal of
the Group's partner effective 1.1.2026.

 2  (#_ftnref2) Total production costs are stated prior to audit adjustments
including non-cash inventory and lifting movements.

 3  (#_ftnref3) Does not reflect any capital expenditure or abandonment spend
outside the Group's producing assets.

 4  (#_ftnref4) Reserves and calculations exclude the Sinphuhorm interest,
which was sold in April 2025. The end-2025 reserves assessment by Sproule ERCE
and associated 2P NPV10 is based on the following Brent oil prices - 2026:
US$62/bbl, 2027: US$67/bbl, 2028: US$72/bbl escalated at 2% per annum
thereafter. The reserves assessment assumes a 90% working interest in the
Akatara field.

 5  (#_ftnref5) The end-2024 reserves assessment by ERCE and associated 2P
NPV10 was based on the following Brent prices - 2025: US$76/bbl, 2026:
US$74/bbl, 2027: US$75/bbl flat escalated at 2% per annum thereafter.

 6  (#_ftnref6) Calculated as US$519 million less the Group's 2025 year-end
net debt position of US$89 million, divided by the current GBP:USD rate and
the number of shares in issue (542,162,715). This figure includes forecast
decommissioning spend on producing assets, but is not adjusted for other costs
and obligations of the Group, including general and administrative costs and
forecast decommissioning spend on non-producing assets.

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