TIDMJSE
RNS Number : 8368V
Jadestone Energy PLC
12 August 2022
Montara Operations and Corporate Update
12 August 2022-Singapore: Jadestone Energy plc ("Jadestone", or
the "Company") an independent oil and gas production company
focused on the Asia-Pacific region, provides the following update
on Montara operations as well as a general corporate overview ahead
of its H1 2022 results, which will be released on 20 September
2022.
Montara Operations Update
Further to the announcement in June 2022 reporting a small leak
of oil from a crude oil tank on the Montara Venture FPSO, followed
by an interim repair and subsequent restart of production from
Montara, the Company has been working to complete a permanent
repair to tank 2C. During preparations for this repair, an
additional internal defect in water ballast tank 4S was detected
and this will also be included in the workscope of repairs. There
has also been a focus on the remaining scheduled inspection and
repair activities to the FPSO crude oil tanks and production
facilities which, as previously announced, have been delayed by
limitations on available personnel during the COVID-19
pandemic.
Over the past several weeks, the permanent repair to tank 2C has
been developed, though delayed due to weather, manpower and
logistics issues, further complicated while the facility remains in
production operations. This has resulted in an inability to
simultaneously accommodate the increased number of inspection and
repair crews alongside production operations.
As a result, the Company has taken the decision to temporarily
shut-in production from Montara and reorganise offshore manpower on
the FPSO enabling priority and focus on maintenance and inspection
crews. This is the most practical and efficient way to complete
tank repairs whilst progressing ongoing inspection and remediation
to other tanks in the FPSO and to complete key remaining scheduled
inspection and repair activities planned for this year.
It is currently anticipated that these inspection and repair
activities will result in production being shut-in during the
remainder of August and potentially through September 2022. It is
currently anticipated that prioritising the activity referenced
above will result in incremental costs of US$2-4 million.
Production Guidance and Share Buyback Programme
As a result of the Montara shut-in referred to above, and the
performance of the wider production portfolio year-to-date, the
Company now expects that 2022 production will average between
13,000 and 14,000 boe/d. This compares to the announcement on 20
June 2022, which signalled that 2022 production would likely be
around 15,500 boe/d, being the lower end of the previous guidance
range. The revised 2022 production guidance reflects the Company's
assumption that production from its non-operated assets offshore
Peninsular Malaysia will now remain shut in for the remainder of
2022, due to ongoing delays in reinstating operations.
The Company is confident that by taking this approach at
Montara, the necessary work required to deliver long-term asset
integrity can be safely and efficiently completed. The impact is
short-term and there is no reduction in reserves. As a result, and
given its strong balance sheet, the Company intends to continue the
share buy-back programme announced on 2 August 2022.
H1 2022 trading Update
The Company provides the following operational and financial
metrics ahead of its first-half 2022 results, which are scheduled
for release on 20 September 2022. This information has not been
audited and may be subject to further review.
-- H1 2022 production of 15,008 boe/d, with a preliminary breakdown as follows
! Australia: 9,565 bbls/d
! Peninsular Malaysia: 5,443 boe/d
-- Liftings: 2.0 mmbbl of oil and 0.9 bcf of gas
-- Realised prices:
! Oil: US$109.52/bbl
! Gas: US$2.17/mscf
-- Total H1 2022 revenues: US$225.6 million
-- End H1 2022 cash balance: US$161.1 million
Paul Blakeley, President and CEO commented:
"Safety to personnel and facility integrity are key foundational
principles at the heart of our operating philosophy, and after
experiencing ongoing delays to the permanent repair on tank 2C, and
to the wider inspection and repair programme on the Montara Venture
FPSO, we believe we had to approach this work scope in a different
way.
A temporary shut-in of Montara production, in order to replace
production crews with maintenance and inspection teams, is the most
practical solution which will allow us to apply the necessary
additional manpower to accelerate key maintenance and repair
activities and restore facility integrity. There can be no short
cuts, and while we have made very significant progress in restoring
the FPSO to the standard which we expect, the limited FPSO
accommodation, as well as other factors such as COVID-19, have been
impeding our progress. Our decision will reverse this trend. This
represents production deferred, rather than barrels lost, and we
are working hard to restore Montara production as soon as
possible."
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
Georgia Edmonds
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 and Vietnam.
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 Peninsular
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 development.
In addition, the Company has executed a sale and purchase
agreement ("SPA") to acquire a 16.67% working interest in the North
West Shelf Oil Project, offshore Western Australia, which is
expected to complete in the fourth quarter of 2022. The Company has
also signed an SPA 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.
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.
Glossary
bbl barrel of oil
bbls/d barrels per day
--------------------------------------------------
bcf billion cubic feet of gas
--------------------------------------------------
boe barrel of oil equivalent
--------------------------------------------------
boe/d barrels of oil equivalent per day
--------------------------------------------------
FPSO floating production storage and offloading vessel
--------------------------------------------------
mmbbl million barrels of oil
--------------------------------------------------
mscf millon standard cubic feet of gas
--------------------------------------------------
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