TIDMJSE
RNS Number : 2264B
Jadestone Energy PLC
10 February 2022
Jadestone Energy
2022 Operating and Financial Guidance
10 February 2022 - Singapore: Jadestone Energy plc ("Jadestone"
or the "Company"), an independent oil and gas production company
focused on the Asia-Pacific region, is pleased to provide its
guidance outlook for 2022.
Paul Blakeley, President and CEO commented:
"Our strong balance sheet and unhedged exposure to rising oil
prices will comfortably underpin our activity levels in 2022, which
incorporates two infill wells at Stag and initial development
activity at the Akatara gas project in Indonesia. We expect
production to increase 36% in 2022 at the midpoint of the
15,500-18,500 boe/d guidance range, which excludes any contribution
from Maari.
We welcome the greater clarity that the revised New Zealand
hydrocarbon legislation provides, and with Jadestone and OMV both
committed to the Maari transaction, we are ready to work with the
government to expedite the completion of this deal. However, given
that the exact schedule to completion is dependent on the New
Zealand upstream regulator's implementation of the recent
legislative changes, it feels prudent to exclude Maari from our
production guidance at this point. In the meantime, Jadestone
continues to benefit from the project's strong cash generation.
In Indonesia, we have continued to advance the Akatara project
with pre-project activity moving ahead on schedule, while in
Vietnam, we are continuing to engage with the government on the Nam
Du/U Minh project. We are also encouraged by the M&A pipeline
in the Asia-Pacific region, and are currently assessing several
opportunities, all subject to our strict investment criteria.
Maintaining a conservative balance sheet remains a priority, in
order that we comfortably meet our capital commitments and retain
funding flexibility for accretive growth opportunities. However,
based on our spending forecasts, we expect to generate material
incremental cash in 2022 at current oil prices and premiums, and as
a result, an increase in shareholder returns, either through
increased dividends and/or share buy-backs, may be considered later
in the year."
2022 operating and financial guidance
l 2022 production is expected to average 15,500-18,500 boe/d, a
36% increase on 2021, with the majority (c.95%) oil. The range
reflects planned maintenance shutdowns at Montara, Stag and the
operated Peninsular Malaysia assets during the year. It also
includes reduced production from the Montara field over a three to
four-week period in early 2022, due to an engine failure in the gas
reinjection compressor and the necessary works to restore
production to full capacity.
l The Maari field is expected to average 4,500-4,700 bbls/d
(gross) in 2022 but has been excluded from production guidance
pending further clarity on the timing of closing the
acquisition.
l The strength in crude premiums seen in late 2021 has continued
into early 2022. The most recent liftings from Stag (December 2021)
and Montara (January 2022) achieved premiums of US$12.70/bbl and
US$3.80/bbl respectively.
l Unit operating costs(1) are expected to average
US$23.00-28.00/boe in 2022, representing an c.10% reduction on 2021
levels, primarily due to higher average production expected in the
year, partially offset by the planned major three-year maintenance
programmes.
l Capital expenditure guidance is set at US$90-105 million,
comprising mainly the Stag infill programme, which develops two
million barrels of reserves, and the first phase of the Akatara gas
project, which is expected to be sanctioned during H1 2022.
o The cost of the Stag infill programme is immediately
deductible under the current Australia tax incentive for qualifying
investment, and is expected to reduce overall Australia corporate
income tax paid in 2022.
l The Company is currently unhedged, although hedging will be
contemplated in line with any debt funding arranged for the Akatara
gas development.
l The Company is committed to pay a 2022 cash dividend, in
keeping with the dividend policy, to maintain and grow dividends in
line with underlying cashflow generation.
Net zero GHG target update
As previously announced, the Company plans to convert its 2021
net zero ambition into a clear net zero greenhouse gas commitment
later in the first half of 2022. This will include interim
milestones and associated workstreams which are well advanced.
Jadestone's corporate strategy of maximising recovery from existing
fields while minimising their emissions, and a move towards more
gas in the portfolio over time, is both responsible and appropriate
in the context of managing climate change. This also strikes the
right balance in delivering secure and affordable energy in parts
of Southeast Asia where either an energy shortage exists or where
coal may be used as an alternative. Jadestone believes it can play
an important role during this period of energy transition, while
also demonstrating resilience and longevity to its business.
Gas developments
Following signature of the gas sales agreement for the Akatara
field in December 2021, the Company has been progressing the FEED
optimisation and preparing for the EPC contract tender, which will
commence shortly. A final investment decision is still expected in
the first half of 2022, which would maintain the project schedule
for first gas in H1 2024.
Jadestone remains committed to commercialising its offshore
Vietnam gas resources and continues to collaborate with the
government regarding the proposed Nam Du/U Minh field development.
The Company is pursuing a strategy of agreeing a production profile
for the fields as a precursor to a gas sales contract and
ultimately attaining government sanction for the development.
Jadestone believes that development of the Nam Du/U Minh gas fields
will increase Vietnam's energy independence, support the country's
growing economy, and assist in the country's energy transition
following Vietnam's recent commitment to carbon neutrality by
2050.
Conference call and webcast
The management team will host an investor and analyst conference
call to accompany the announcement at 09:00 (London) / 17:00
(Singapore) today, Thursday 10 February 2022, including a question
and answer session.
The call is accessible by dial-in and through a live audio
webcast as detailed below. Please register approximately 15 minutes
prior to the start of the event.
Webcast link:
https://produceredition.webcasts.com/starthere.jsp?ei=1524328&tp_key=4ea3072531
Event conference title: Jadestone Energy plc. - Guidance
update
Start time: 09:00 (London) / 17:00 (Singapore)
Date: Thursday, 10 February 2022
Conference ID: 68604466
United Kingdom 08006522435
Australia 1800076068
Canada (Toll free) 8883900546
France 0800916834
Germany 08007240293
Hong Kong 800962712
Indonesia 0018030208221
Japan 006633812569
Malaysia 1800817426
Netherlands 08000227908
New Zealand 0800453421
Singapore 8001013217
Spain 900834776
Sweden 0200899189
Switzerland 0800312635
USA (Toll free) 8883900546
Area access numbers are subject to carrier capacity and call
volumes.
(1) Unaudited operating expense is a non-GAAP financial measure
which does not have a standardised meaning prescribed by IFRS. This
non-GAAP financial measure is included because management uses this
information to analyse financial performance and efficiency and it
may be useful to investors on the same basis. Unaudited operating
expense is a non-GAAP measure which should not be considered an
alternative to, or more meaningful than, "production cost" as
determined in accordance with IFRS, as an indicator of financial
performance. Unaudited operating expense equals production cost
plus the net impact of opex related foreign exchange gains and
losses and adjusted for certain non-routine maintenance items and
workover costs. Because non-GAAP financial measures do not have a
standardised meaning prescribed by IFRS, they are unlikely to be
comparable to similar measures presented by other companies and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
Production cost will be disclosed along with the Company's full
year financial and operating results, including audited
consolidated group financial statements, in April 2022.
For further information, please contact:
Jadestone Energy plc
Paul Blakeley, President and CEO +65 6324 0359 (Singapore)
Phil Corbett, Investor Relations Manager +44 7713 687467 (UK)
ir@jadestone-energy.com
Stifel Nicolaus Europe Limited (Nomad, +44 (0) 20 7710 7600 (UK)
Joint Broker)
Callum Stewart
Jason Grossman
Ashton Clanfield
Jefferies International Limited (Joint +44 (0) 20 7029 8000 (UK)
Broker)
Tony White
Will Soutar
Camarco (Public Relations Advisor) +44 (0) 203 757 4980 (UK)
Billy Clegg jse@camarco.co.uk
James Crothers
About Jadestone Energy
Jadestone Energy plc is an independent oil and gas company
focused on the Asia-Pacific region. It has a balanced, low risk,
full cycle portfolio of development, production and exploration
assets in Australia, Malaysia, Indonesia, Vietnam and the
Philippines.
The Company has a 100% operated working interest in the Stag
oilfield and in the Montara project, both offshore Australia. Both
the Stag and Montara assets include oil producing fields, with
further development and exploration potential. The Company also has
interests in four oil producing licences offshore Peninsula
Malaysia; two operated and two non-operated positions. Further, the
Company has a 100% operated working interest in two gas development
blocks in Southwest Vietnam, and an operated 100% interest
(assuming completion of the Hexindo stake acquisition, as announced
in November 2021) in the Lemang PSC, onshore Sumatra, Indonesia,
which includes the Akatara gas field.
In addition, the Company has executed a sale and purchase
agreement to acquire a 69% operated working interest in the Maari
Project, shallow water offshore New Zealand, and is working with
the seller to obtain final New Zealand government approvals.
Led by an experienced management team with a track record of
delivery, who were core to the successful growth of Talisman's
business in Asia, the Company is pursuing an acquisition strategy
focused on growth and creating value through identifying,
acquiring, developing and operating assets in the Asia-Pacific
region.
Jadestone Energy plc is listed on the AIM market of the London
Stock Exchange. The Company is headquartered in Singapore. For
further information on the Company please visit
www.jadestone-energy.com .
Cautionary statements
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.
Henning Hoeyland of Jadestone Energy plc, a Subsurface Manager
with a Masters degree in Petroleum Engineering, who is a member of
the Society of Petroleum Engineers and who has been involved in the
energy industry for more than 20 years, has read and approved the
technical disclosure in this regulatory announcement.
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.
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END
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(END) Dow Jones Newswires
February 10, 2022 02:00 ET (07:00 GMT)
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