TIDMJSE
RNS Number : 9499Z
Jadestone Energy PLC
20 September 2022
Jadestone Energy
2022 Half Year Results and Interim Dividend Declaration
20 September 2022-Singapore: Jadestone Energy plc (AIM:JSE)
("Jadestone" or the "Company"), an independent oil and gas
production company and its subsidiaries (the "Group"), focused on
the Asia Pacific region, reports today its unaudited condensed
consolidated interim financial statements, as at and for the
six-month period ended 30 June 2022 (the "financial
statements").
Management will host a conference call today at 9:00 a.m. UK
time, details of which can be found in the release below.
Paul Blakeley, President and CEO commented:
"Jadestone delivered record financial results in the first half
of 2022, with production increasing by c.50% compared to the first
half of 2021, driven by a full period contribution from the
Malaysian assets acquired in August 2021 and the impact of the
Montara drilling programme in the second half of 2021, albeit
offset by an unplanned shutdown at Montara early in 2022 due to a
compressor engine failure. Revenues and adjusted EBITDAX increased
by 63% and 113% respectively, due to the increase in production
volumes and higher realised oil prices. As a result, we ended the
period with a net cash balance of US$161.6 million, an increase of
almost 40% compared to year-end 2021. Jadestone remains debt
free.
Despite all this, recent operational performance at Montara has
been disappointing, especially given the substantial upgrade and
repair work done to date. As previously announced, the field is
currently shut-in as we progress a remediation plan for the Montara
Venture FPSO following defects identified earlier this year. The
plan involves emptying, cleaning, inspecting and, where necessary,
resolving any defects in the tanks and hull of the FPSO. In
particular, we are moving ahead with the permanent repair of 2C
crude oil cargo tank and 4S ballast tank whilst prioritising entry
and activity in other tanks in preparation for operational
readiness. As we focus on safety and integrity, this activity will
continue until we can ensure a safe and reliable restart of the
FPSO. In parallel, we are making good progress in the appointment
of, and work scope for, the independent reviewer, who will work
with us to provide final assurance to Jadestone and the regulator
on our remediation plans and operational readiness prior to the
restart of production operations. While we understand that the lack
of a firm restart date is frustrating for many of our stakeholders,
our focus is on the remediation plan and its successful execution
which, in turn, will restore confidence in the significant
remaining value we see at Montara.
We have also initiated a fundamental review of our hull and tank
inspection and repair regime, which will include our maintenance
approach, operating systems and organisational structure. As a
near-term action to assist management, Jadestone's Board of
Directors has established a special subcommittee, which will work
closely with Company's executive and senior operations leadership,
providing both additional support and challenge, while the Montara
FPSO hull and tank remediation work is in progress. This will
include weekly progress updates and reports.
The balance sheet strength we have built in recent years, and
the confidence in our existing asset portfolio and its planned
growth, means we are well-positioned to weather the Montara shut-in
without any anticipated impact on our investment programmes,
inorganic growth, or near-term shareholder returns. We expect
capital expenditures for the year to be in line with guidance of
US$90.0 - 105.0 million. We have also taken the decision to
increase the interim dividend by 10% to US$3.0 million and, subject
to market conditions, we intend to complete the US$25.0 million
share buyback programme launched in August and which has so far
returned an incremental US$4.9 million to shareholders. The next
phase of the shareholder returns strategy announced in June will be
determined by the timing of production restart at Montara, our
portfolio's operational performance, realised oil prices, and the
timing and scale of incremental inorganic growth opportunities.
The Company continues to deliver on its growth strategy. In
June, we took a final investment decision on the Akatara gas
development on the Lemang PSC in Indonesia, with activity at the
site now well underway. Separately, the acquisition of the
outstanding 10% stake in the Lemang PSC is expected to complete
soon. In July, we announced the acquisition of a non-operated
interest in the producing Northwest Shelf ("NWS") oil project
offshore Australia, and are making good progress towards closing
this transaction in Q4 2022.
Our strong balance sheet underlines the success of our business
model, supporting our planned investments for growth, and while the
recent Montara asset incident is unfortunate, we are determined to
fix it and deliver the original value proposition vindicating our
strategy in the Asia Pacific region."
Paul Blakeley
EXECUTIVE DIRECTOR,
PRESIDENT AND CHIEF EXECUTIVE OFFICER
2022 FIRST HALF RESULTS SUMMARY
USD'000 except where indicated H1 2022 H1 2021 FY 2021
-------------------------------------- -------- -------- ---------
Production, boe/day 15,008 9,934 12,545
Realised oil price per barrel of
oil equivalent (US$/boe)(1) 109.52 67.70 74.34
Realised gas price per million
standard cubic feet
(US$/mmscf) 2.03 - 1.61
Revenue 225,639 138,158 340,194
Operating costs per barrel of oil
equivalent (US$/boe)(2) 25.71 28.16 26.22
Adjusted EBITDAX(2) 138,608 65,179 157,948
Profit/(Loss) after tax 49,486 2,495 (13,742)
Earnings/(Loss) per ordinary share:
basic (US$) 0.11 0.01 (0.03)
Earnings/(Loss) per ordinary share:
diluted (US$) 0.10 0.01 (0.03)
Dividend per ordinary share (US
)(3) 0.65 0.59 1.93
Operating cash flows before movement
in working capital 126,481 54,376 96,622
Capital expenditure 13,621 16,221 55,996
Net cash(2) 161,628 48,291 117,865
Operational and financial summary
l Production increased 51% during H1 2022 to 15,008 bbls/d (H1
2021: 9,934 bbl/d). Production benefitted from a full period of the
PenMal Assets acquired in August 2021 and the Montara activity
programme in H2 2021, offset by unscheduled downtime at Montara
early in 2022, a planned maintenance shutdown at Stag in May, and
the shut-in of the non-operated PenMal Assets in February 2022 due
to FPSO class suspension;
l Average realised oil price(1) in H1 2022 was US$109.52/bbl,
62% higher than H1 2021. The realised price includes a weighted
average premium across the assets of US$6.99/bbl (H1 2021:
US$3.12/bbl);
l Revenue of US$225.6 million in H1 2022, up 63% from H1 2021 at
US$138.2 million, due to higher production and higher average
realised prices;
l Closing crude stocks as at 30 June 2022 totalled 417,216 bbls,
which were subsequently sold in the second half of 2022, generating
provisional receipts of US$45.3 million, from a provisional
weighted average realised price of US$108.97/bbl;
l As at 30 June 2022, there was an underlift production
entitlement carried forward of 130,359 bbls at the PenMal Assets,
resulting in a receivable of US$16.8 million, calculated based on
the average June 2022 Dated Brent price plus latest realised
premium;
l Unit operating costs(4) of US$25.71/boe, down 9% from
US$28.16/bbl in H1 2021 due to inclusion of the PenMal Assets,
which have a lower opex/boe compared to the Australian producing
assets;
l Adjusted EBITDAX improved 113% to US$138.6 million compared to
US$65.2 million in H1 2021, predominately due to increased
production, higher oil prices and lower one-off project
expenditures in Other Expenses;
l Net profit after tax in H1 2022 of US$49.5 million compared to
US$2.5 million in H1 2021;
l Operating cash flows before movements in working capital in H1
2022 of US$126.5 million, up 133% compared to H1 2021 ;
l Capital expenditure in H1 2022 of US$13.6 million, down 16%
compared to H1 2021 due to the phasing of expenditure in H2
2022;
l Cash balances of US$161.6 million as at 30 June 2022 (H1 2021:
US$48.3 million), with no debt outstanding; and
l Recommended interim dividend for FY2022 of USc0.65/share(3)
(H1 2021: USc0.59/share), equivalent to a total distribution of
US$3.0 million (H1 2021: US$2.8 million). On 2 August 2022, the
Company announced the launch of a share buyback programme with a
maximum amount of US$25.0 million. As at 16 September 2022, 4.7
million of shares had been acquired at an accumulated cost of
US$4.9 million.
Business development
l On 16 November 2019, the Group executed a sale and purchase
agreement with OMV New Zealand Limited ("OMV"), to acquire an
operated 69% interest in the Maari project, subject to customary
conditions, including government approvals. Following legislative
changes to New Zealand's upstream regulatory framework at the end
of 2021, Jadestone has continually engaged with OMV and the New
Zealand Government to seek clarity on the processes, terms and
associated timeline required to complete the Maari transaction.
Despite these efforts, it remains unclear under what circumstances
and in what timeframe completion of the transaction and transfer of
operatorship can occur;
l On 6 June 2022, the Group announced that a final investment
decision had been taken on the Akatara gas field development
onshore Indonesia, following the receipt of necessary consent from
the Indonesian upstream regulator. The project is now in the
development phase with first gas anticipated in the first half of
2024;
l On 24 November 2021, the Group executed a settlement and
transfer agreement with PT Hexindo Gemilang Jaya to acquire the
remaining 10% interest in the Lemang PSC for US$0.5 million and a
waiver of unpaid amounts related to the PSC. Indonesian government
approval is anticipated in Q4 2022; and
l On 28 July 2022, the Group announced the execution of a sale
and purchase agreement with BP Developments Australia Pty Ltd
("BP") to acquire BP's non-operated 16.67% working interest in the
Cossack, Wanaea, Lambert and Hermes oil fields development offshore
Western Australia, for a total initial headline cash consideration
of US$20.0 million, and certain subsequent contingent and
decommissioning security payments.
Significant events
l On 7 February 2022, the Bunga Kertas FPSO, deployed at the
non-operated PenMal Assets, had its class suspended, resulting in
the non-operated PenMal Assets being shut-in and production
suspended. Production is expected to remain shut-in for the
remainder of 2022. The estimated adjustment to the production
guidance provided in August 2022 to arrive at the current
production guidance for full year 2022 is a reduction of c.720
boe/d;
l As previously announced, on 17 June 2022, between three to
five cubic metres of crude oil was released to sea during a routine
oil transfer between tanks on the Montara Venture FPSO. The
facility was immediately shut-in as a precaution and the relevant
authorities notified. Following a temporary repair and isolation of
the 2C cargo tank where the leak originated, production was
restarted on 4 July 2022 while a permanent repair was being
developed;
l On 12 August 2022, an additional defect was identified in a
ballast water tank on the Montara Venture FPSO during preparation
work for a permanent repair to the 2C cargo tank. The Group took
the decision to temporarily shut-in production at Montara to
prioritise the permanent repairs, removing a number of production
operations personnel in order to provide accommodation for
additional inspection and repair crews due to an inability to
simultaneously accommodate both; and
l On 15 September 2022, Jadestone's Board of Directors
established a temporary special sub-committee to assist management
during the ongoing Montara FPSO hull and tank workstreams. It will
receive weekly progress reports on the Montara FPSO remediation
activities, and interact directly with the Group's senior
operations leadership to review actions and progress towards the
remediation plan's objectives, including the restart of
production.
2022 Guidance
l Production: 11,000 - 13,000 boe/d (as announced on 12
September 2022, the production forecast was decreased due to the
shut-in of production from the Montara fields);
l Unit opex: US$ 31.00 - 37.00/boe (increased from previous
guidance at US$23.00 - US$28.00 primarily due to incorporating the
lower production forecast above) ; and
l Capex: US$90.0 - 105.0 million (unchanged).
(1) Realised oil price represents the actual selling price
inclusive of premiums.
(2) Operating costs per boe, adjusted EBITDAX and net cash are
non-IFRS measures and are explained in further detail below.
(3) Dividend per ordinary share calculated based on outstanding
number of shares at period/year end. The actual dividend per share
will reflect any changes in the shares outstanding between the
period/year end and the associated record date including the shares
buyback.
(4) Unit operating costs per boe before workovers and movement
in inventories but including net lease payments and certain other
adjustments (see non-IFRS measures below).
Enquiries
Jadestone Energy plc.
Paul Blakeley, President and CEO +65 6324 0359 (Singapore)
Bert-Jaap Dijkstra, CFO
Phil Corbett, Investor Relations Manager + 44 7713 687 467 (UK)
ir@jadestone-energy.com
Stifel Nicolaus Europe Limited (Nomad, +44 (0) 20 7710 7600
Joint Broker) (UK)
Callum Stewart / Jason Grossman / Ashton
Clanfield
Jefferies International Limited (Joint +44 (0) 20 7029 8000
Broker) (UK)
Tony White / Will Soutar
Camarco (Public Relations Advisor) +44 (0) 203 757 4980
(UK)
Billy Clegg / Georgia Edmonds / James jadestone@camarco.co.uk
Crothers
Conference call and webcast
The management team will host an investor and analyst conference
call at 9:00 a.m. (London)/4:00 p.m. (Singapore) today, Tuesday, 20
September 2022, including a question-and-answer session.
The live webcast of the presentation will be available at the
below webcast link. Dial-in details are provided below. Please
register approximately 15 minutes prior to the start of the
call.
The results for the financial period ended 30 June 2022 will be
available on the Company's website at:
www.jadestone-energy.com/investor-relations/
Webcast link: https://app.webinar.net/VXGleQG4RWA
Event title: Jadestone Energy plc first-half 2022 results
Time: 9:00 a.m. (UK time) / 4:00 p.m. (Singapore time)
Date: Tuesday, 20 September 2022
Conference ID: 65496332
Dial-in number details:
Country Dial-In Numbers
United Kingdom 08006522435
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Australia 1800076068
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Canada (Toll free) 888-390-0546
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France 0800916834
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Germany 08007240293
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Hong Kong 800962712
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Indonesia 0078030208221
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Japan 006633812569
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Malaysia 1800817426
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Netherlands 08000227908
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New Zealand 0800453421
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Singapore 8001013217
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Spain 900834776
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Sweden 0200899189
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Switzerland 0800312635
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United States (Toll free) 888-390-0546
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DIVID DECLARATION AND PROGRESS SHARE BUYBACK PROGRAMME
On 20 September 2022, the Directors declared a 2022 interim
dividend of 0.65 US cents /share, equivalent to a total
distribution of US$ 3.0 million. The timetable for the dividend
payment is as follows:
l Ex-dividend date: 29 September 2022
l Record date: 30 September 2022
l Payment date: 14 October 2022
The Group's growth-orientated strategy remains unchanged, with
the objective of establishing a leading Asia-Pacific upstream
company through acquiring and maximising the value of producing
fields and development assets. The Group prioritises organic
reinvestment, and maintains a conservative capital structure in
order to capitalise on inorganic growth opportunities as they
arise. Notwithstanding this, the Group believes that its production
and development led business model is fundamentally pre-disposed to
provide meaningful shareholder returns, particularly during times
of higher oil prices. The Company targets a sustainable base
dividend, with a targeted split one-third to an interim dividend
and two-thirds to a final dividend, growing over time in line with
underlying cash flow generation. The base dividend may be augmented
over time by additional shareholder returns (in the form of share
buybacks, special dividends and/or tender offers) if deemed
appropriate by the Company.
The Company does not offer a dividend reinvestment plan and does
not offer dividends in the form of ordinary shares.
On 2 August 2022, the Company announced the launch of a share
buyback programme (the "Programme") in accordance with the
authority granted by the shareholders at the Company's annual
general meeting on 30 June 2022. The maximum amount of the
Programme is US$25.0 million, and the Programme will not exceed
46,574,528 ordinary shares. There is no certainty on the volume of
shares that may be acquired, nor any certainty on the pace and
quantum of acquisitions.
As at 16 September 2022, the Company had acquired 4.7 million
shares at a weighted average cost of GBP 0. 89 per share, resulting
in an accumulated total of US$4.9 million.
ENVIRONMENT, SOCIAL AND GOVERNANCE ("ESG")
As a responsible upstream operator, Jadestone contributes to an
orderly energy transition by helping to meet regional Asia-Pacific
energy demand whilst minimising the environmental footprint of its
operations. In doing so, Jadestone aims to bring positive social
and economic benefits for its stakeholders, local communities and
people associated with its operations.
Jadestone published its third Sustainability Report in June
2022, which covered the Group's ESG performance in 2021, as well as
commitments to further improvements in 2022 across key focus areas.
This section provides an overview of period-to-date performance of
the Group, representing the Stag and Montara fields, the PenMal
operated assets and, where relevant, the Akatara gas
development.
Net Zero and GHG emissions
The Group committed in June 2022 to achieve Net Zero Scope 1 and
2 GHG emissions from its operated assets by no later than 2040. The
detail of this commitment as well as Jadestone's strategy through
the energy transition can be viewed on Jadestone's website(1) .
A key element of the Net Zero commitment is the development of
an emissions reduction roadmap for Jadestone's operated assets,
which will inform the interim GHG reduction targets for the Group.
Jadestone has engaged a reputable international consultant to
support its Net Zero workstreams, which will be progressed
throughout H2 2022 and into 2023. The Group is on track to publish
its Net Zero roadmap in 2023 and is committed to being transparent
in the implementation of the roadmap on at least an annual
basis.
Illustrative of its efforts to minimise GHG emissions, a solar
photovoltaic installation was piloted at the Akatara gas field
development in Indonesia in April 2022, replacing diesel generators
at four well pads. Solar power now fully meets well pad lighting
and electricity needs, with potentially broader application within
the Akatara development, such as use in the accommodation camp. In
collaboration with other operators in the area, Jadestone is
participating in the planting of over 27,000 mangrove trees to
positively impact the health and wellness of local communities and
environment.
HSE performance
The Group's priority remains the health and safety of its staff
and contractors, along with ensuring that any negative
environmental impacts from operations are minimised.
At the operated PenMal Assets, there have been no recordable
incidents since Jadestone assumed operatorship in August 2021.
Similarly, since construction started at the Akatara gas
development in Indonesia earlier this year, no recordable incidents
have occurred. In Australia, there were three recordable incidents
with one at Stag classified as a Lost Time Injury ("LTI"). The crew
member concerned suffered a minor injury, recovered quickly and is
back to work. The LTI was managed in accordance with Jadestone's
Injury & Illness Management Procedure, with a detailed
investigation completed and ensuing actions and engineering
modifications fully implemented.
(1)
https://www.jadestone-energy.com/jadestone-announces-2040-net-zero-target/
As referenced previously, in June 2022, between three to five
cubic metres of crude oil was released to sea during a routine oil
transfer between tanks on the Montara Venture FPSO. Production
operations resumed on 4 July 2022 but were then shut-in again in
August 2022 after an additional internal defect was identified in a
ballast water tank on the FPSO. The Group took the decision to
temporarily shut-in production at Montara to prioritise permanent
repairs, removing a number of production operations personnel in
order to provide accommodation for additional inspection and repair
crews due to an inability to simultaneously accommodate both.
Governance
On 7 April 2022, the Group announced the immediate appointment
of Jenifer Thien as an independent non-executive director. Jenifer
brings knowledge and experience in environmental, social and
governance ("ESG") strategy. Jenifer joined the Remuneration,
Governance and Nomination, and Health, Safety, Environment and
Climate (HSEC) committees.
On 29 April 2022, Daniel Young stepped down from his role as the
Chief Financial Officer ("CFO") and Executive Director and left the
Group. Michael Horn took the role of interim CFO until 22 August
2022, when Bert-Jaap Dijkstra was appointed by the Board as CFO and
Executive Director.
Jadestone's Board of Directors (the "Board") supports
management's decision to shut-in operations at Montara to focus on
the inspection, maintenance and repair activities associated with
the Montara FPSO hull and tanks , recognising the elevated
requirements to restart operations as outlined within the General
Direction issued by NOPSEMA on 12 September 2022. The Board has
every confidence in the Group's abilities to execute the
remediation plan efficiently and effectively and to the
satisfaction of the regulatory authorities.
D uring this period, a technical subcommittee of the Board will
work more closely with senior management, providing both support
and challenge, while the Montara FPSO hull and tank remediation
plan is in progress. This will include weekly progress updates and
reports.
OPERATIONAL REVIEW
Producing assets
Australia
Montara project
The Montara project, in production licences AC/L7 and AC/L8, is
located 254 km offshore Western Australia, in a water depth of
approximately 77 metres. The Montara project comprises three
separate fields being Montara, Skua and Swift/Swallow, which are
produced through an owned FPSO, the Montara Venture.
As at 31 December 2021, the Montara assets had proven plus
probable reserves of 20.9mm barrels of oil, 100% net to
Jadestone.
The fields produce light sweet crude ( 42(o) API, 0.067% mass
sulphur), which typically sells for average Dated Brent plus the
average Tapis differential of the prior two months before the
lifting date. This premium ranged from US$3.53/bbl to US$6.19/bbl
during H1 2022.
Montara production averaged 7,509 bbls/d in H1 2022 (H1 2021:
7,269 bbls/d). The higher production was a result of the drilling
of H6 and the subsea workovers of Skua 10 and 11 in the second half
of 2021. The additional production was partially offset by an
unplanned gas turbine replacement and a temporary loss of subsea
communication impacting uptime from the Swallow-11 well during H1
2022.
As previously announced, on 17 June 2022, between three to five
cubic metres of crude oil was released to sea during a routine oil
transfer between tanks on the Montara Venture FPSO. The facility
was immediately shut-in as a precaution and the relevant
authorities notified. Following a temporary repair and isolation of
the 2C cargo tank where the leak originated, production was
restarted on 4 July 2022 while a permanent repair was being
developed.
On 12 August 2022, an additional internal defect was identified
in a ballast water tank on the Montara Venture FPSO during
preparation work for a permanent repair to the 2C cargo tank. The
Group took the decision to temporarily shut-in production at
Montara to prioritise permanent repairs, removing a number of
production operations personnel in order to provide accommodation
for additional inspection and repair crews due to an inability to
simultaneously accommodate both.
There were three liftings during H1 2022, resulting in total
sales of 1.3 mmbbls, compared to 1.5 mmbbls during H1 2021 from the
same number of liftings.
Stag oilfield
The Stag oilfield, in production licence WA-15-L, is located 60
km offshore Western Australia in a water depth of approximately 47
metres.
As at 31 December 2021, the field contained total proved plus
probable reserves of 12.6mm barrels of oil, 100% net to
Jadestone.
The Stag oilfield produces heavier sweet crude ( 18(o) API,
0.14% mass sulphur), which historically sells at a premium to Dated
Brent. The premium of the H1 2022 lifting was US$23.72/bbl compared
to a weighted average of US$11.09/bbl in H1 2021, reflecting the
increase in refinery demand for heavy oil with low sulphur
content.
Production during H1 2022 was 2,057 bbls/d, compared to 2,665
bbls/d during H1 2021, due to a scheduled maintenance shutdown in
May 2022. The shutdown was to perform pressure vessel inspections
and occurs once in every three years.
Due to the lifting schedules, there was one lifting in H1 2022
for 0.3 mmbls compared to two in H1 2021 for 0.5mmbls.
Malaysia
Operated: PM 323 and PM 329 PSCs & Non-operated: PM 318 and
AAKBNLP PSCs
The PenMal Assets consist of four licences, two of which are
operated by the Group. The two operated licences comprise a 70%
interest in the PM329 PSC, containing the East Piatu field, and a
60% interest in the PM323 PSC, which contains the East Belumut,
West Belumut and Chermingat fields. Both PSCs are located
approximately 230km northeast of Terengganu in shallow water.
The two non-operated ("OBO") licences consist of 50% working
interests in each of the PM318 PSC and in the Abu, Abu Kecil, Bubu,
North Lukut, and Penara oilfields (the "AAKBNLP") PSC. The two
non-operated PSCs are located in the same region as PM329 and
PM323.
As at 31 December 2021, the PenMal Assets contained total proved
plus probable reserves of 11.2mmboe, net to Jadestone.
The PenMal Assets produce light sweet crude that is blended to
Tapis grade (43 (o) API, 0.04% mass sulphur). This premium ranged
between US$0.96/bbl to US$6.76/bbl in H1 2022.
During H1 2022, the average production from the PenMal Assets
was 4,578 bbls/d of oil and 5,191 mscf/d of gas, creating a
combined production of 5,443 boe/d , net to Jadestone's working
interest. There was no comparable production in H1 2021 as the
acquisition of the PenMal Assets was completed in August 2021.
On 7 February 2022, the Bunga Kertas FPSO, deployed at the
non-operated assets, had its class suspended, resulting in the
fields having to shut-in and cease production. Since the class
suspension, there has been no production and it is expected that
production will remain shut-in for the remainder of 2022.
Currently, following a subsequent safety incident, the operator has
paused its FPSO repair plan and is assessing the full range of
alternatives, which include a comprehensive programme of repairs,
an asset divestment or, given that the OBO licenses expire in 2024,
a move towards decommissioning the asset 12 months earlier than
originally planned.
There were seven oil liftings during H1 2022, for total sales of
0.5 mmbbls in addition to the sale of 939.7 mmscf of gas.
Pre-production assets
Indonesia
Lemang PSC
The Lemang PSC (Jadestone 90% working interest) is located
onshore Sumatra, Indonesia. The PSC contains the Akatara field,
which has been substantially de-risked with 11 wells drilled into
the structure, plus three years of oil production history, up until
the field ceased oil production in December 2019. Jadestone is
redeveloping Akatara to supply gas, condensate and LPGs for local
and regional use.
The Akatara gas field has been independently estimated to
contain a 2C gross resource (pre local government back-in rights)
of 63.7 bcf of sales gas, 2.5 mmbbls of condensate and 5.6 mmboe of
LPG, equating to a combined 18.7 mmboe of resource, or 16.8 mmboe
net to Jadestone's existing 90% working interest.
On 30 June 2021, the Minister of Mines and Energy of Indonesia
issued a Ministerial decree that facilitates the development and
commercialisation of the Akatara gas field, allocating gas sales
from the gas field in the Lemang PSC to a subsidiary of PT
Perusahaan Listrik Negara, the national electricity utility, and
the associated production and sales of LPG to the local domestic
market in Jambi province, together with condensate sales to a local
buyer. On 1 December 2021, a gas sale agreement was signed between
Jadestone and PT Pelayanan Listrik Nasional Batam, as buyer.
On 24 November 2021, the Group announced the acquisition of the
remaining 10% interest in the PSC from PT Hexindo Gemilang Jaya
("Hexindo"), subject to customary approvals. The transaction was
approved by the shareholders of Hexindo's ultimate parent company,
Eneco Energy Limited, on 20 June 2022 and the government approval,
representing the last required approval for closing, is anticipated
in Q4 2022.
On 6 June 2022, the Group announced that a final investment
decision had been taken on the Akatara field development following
the necessary approvals by the Indonesian upstream regulator. The
Group awarded the engineering, procurement, construction and
installation contract on 3 June 2022 and development activities
have commenced. Jadestone is pursuing a low-cost development for
the field including efficient use of existing wells and
infrastructure thereby minimising the incremental impact on the
local environment. The Akatara gas project remains on track for
first gas in the first half of 2024.
Vietnam
Block 51 and Block 46/07 PSCs
Jadestone holds a 100% operated working interest in the Block
46/07 and Block 51 PSCs, both in shallow water in the Malay Basin,
offshore southwest Vietnam.
The two contiguous blocks hold three discoveries: the Nam Du gas
field in Block 46/07 and the U Minh and Tho Chu gas/condensate
fields in Block 51, with aggregate 2C resources of 93.9 mmboe.
The Tho Chu discovery in Block 51 is currently under a suspended
development area status, with the exploration period expiring in
June 2023.
Jadestone has, in recent months, been negotiating with the
end-user of gas from its offshore discoveries. These discussions
are still at an early stage, but support the prospect of meaningful
progress towards commercialising the significant and strategic
resource in Jadestone's licences. Development of this resource
would lessen Vietnam's future dependence on expensive imports of
natural gas and contribute towards the country's stated goal of net
zero greenhouse gas emission by 2050.
Pending acquisition
Australia
North West Shelf Project
On 28 July 2022, the Group executed a sale and purchase
agreement with BP Developments Australia Pty Ltd to acquire BP's
non-operated 16.67% working interest in the Cossack, Wanaea,
Lambert and Hermes oil field development (the "North West Shelf
Project"), offshore Australia for a total initial headline cash
consideration of US$20.0 million, and certain subsequent contingent
and decommissioning payments.
The economic effective date of the acquisition is 1 January
2020, meaning that the Group will receive all economic benefits
since that date. The Group estimates that the final closing
adjustment will be higher than the initial cash consideration of
US$20.0 million, in effect representing a net cash income to
Jadestone. Upon closing, the Group will pay US$41 million in cash,
representing the first of three instalments to be made relating to
the decommissioning trust fund payment.
The two final instalments of the decommissioning trust fund
payment will be completed through two equal cash contributions of
US$20.5 million which are payable around or before 31 December 2022
and 2023, respectively.
The completion of the acquisition is subject to customary
closing conditions, including various regulatory approvals. The
Group anticipates completion of the transaction in Q4 2022.
New Zealand
Maari project
On 16 November 2019, the Group executed a sale and purchase
agreement with OMV New Zealand Limited ("OMV"), to acquire an
operated 69% interest in the Maari project, located 120 km offshore
New Zealand, subject to customary closing adjustments. The
transaction has achieved several key milestones with regard to
regulatory approvals.
Following legislative changes to New Zealand's upstream
regulatory framework at the end of 2021, Jadestone has continually
engaged with OMV and the New Zealand Government to seek clarity on
the processes, terms and associated timeline required to complete
the Maari transaction. Despite these efforts, it remains unclear
under what circumstances and in what timeframe completion of the
transaction and transfer of operatorship can occur.
FINANCIAL REVIEW
The following table provides selected financial information of
the Group, which was derived from, and should be read in
conjunction with, the unaudited condensed consolidated interim
financial statements for the period ended 30 June 2022.
Twelve
Six months Six months months
ended ended ended
30 June 30 June 31 December
USD'000 except where indicated 2022 2021 2021
----------------------------------------- ----------- ----------- -------------
Sales volume, barrels of oil equivalent
(boe) 2,199,583 2,040,792 4,664,297
Production, boe/d 15,008 9,934 12,545
Realised oil price per barrel of
oil equivalent, US$/boe(1) 109.52 67.70 74.34
Realised gas price per million
standard cubic feet,
US$/mmscf 2.03 - 1.61
Revenue 225,639 138,158 340,194
Production costs (83,401) (62,492) (206,523)
Operating costs per barrel of oil
equivalent (US$/boe)(2) 25.71 28.16 26.22
Adjusted EBITDAX(2) 138,608 65,179 157,948
Unit depletion, depreciation &
amortisation (US$/boe) 12.06 15.70 13.67
Profit before tax 87,253 11,148 1,080
Profit /(Loss) after tax 49,486 2,495 (13,742)
Earnings/(Loss) per ordinary share:
basic (US$) 0.11 0.01 (0.03)
Earnings/(Loss) per ordinary share:
diluted (US$) 0.10 0.01 (0.03)
Dividend per ordinary share (US
)(3) 0.65 0.59 1.93
Operating cash flows before movement
in working capital 126,481 54,376 96,622
Capital expenditure 13,621 16,221 55,996
Net cash(2) 161,628 48,291 117,865
Benchmark commodity price and realised price
The actual average realised oil price in H1 2022 increased by
62% to US$109.52/bbl, compared to US$67.70/bbl during H1 2021.
The average benchmark oil price incorporated into the Group's
liftings was US$102.53/bbl during H1 2022, an increase of 59%
compared to H1 2021 at US$64.58/bbl.
The average premium for the period was US$6.99/bbl, compared to
H1 2021 of US$3.12/bbl. The increase reflected the demand for Stag
crude which obtained a premium of US$23.72/bbl (H1 2021:
US$11.09/bbl) and increases in Tapis linked crude with Montara and
the PenMal Assets at US$4.52/bbl (H1 2021: US$1.14/bbl) and
US$3.86/bbl (H1 2021: nil), respectively.
(1) Realised oil price represents the actual selling price
inclusive of premiums.
(2) Operating cost per boe, adjusted EBITDAX and net cash are
non-IFRS measures and are explained below.
(3) Dividend per ordinary share calculated based on outstanding
number of shares at period/year end. The actual dividend per share
will reflect any changes in the shares outstanding between the
period/year end and the associated record date including the shares
buyback.
Production and liftings
The Group generated average production of 15,008 boe/d in H1
2022, compared to 9,934 bbls/d in H1 2021. Production increased due
to the acquisition of the PenMal Assets in August 2021, which
generated additional production of 5,443 boe/d during H1 2022.
Montara increased to 7,509 bbl/d from 7,269 bbl/d in H1 2022 due to
the completion of the drilling of H6 and the subsea workovers of
Skua 10 and 11 at the end 2021 offset by operational issues in H1
2022, in particular downtime associated with changing out the gas
compressor engine on the FPSO. Stag production decreased in H1 2022
to 2,057 bbl/d (H1 2021: 2,665 bbl/d) due to a planned shutdown for
vessel inspections and natural field decline.
The Group had 11 liftings during the period (H1 2021: five),
resulting in sales of 2.0 mmbbls (H1 2021: 2.0 mmbbls). The PenMal
Assets contributed seven oil liftings in H1 2022, representing 0.5
mmbbls. In addition, the PenMal Assets produced and sold 939.7
mmscf (approximately 0.2 mmboe) of natural gas. Lifted volumes were
lower than the comparable period last year at Montara and Stag due
to the phasing of liftings (four in H1 2022 compared to five in H1
2021).
The Australian closing crude inventories of 417,216 bbls were
valued at cost of US$25.9 million, which were subsequently sold in
the second half of 2022, generating provisional receipts of US$45.3
million, from a provisional weighted average realised price of
US$108.97/bbl.
PenMal Assets were in an underlift carried forward position of
130,359 bbls, reflecting a market value of US$16.8 million,
calculated based on the average June 2022 Dated Brent price plus
latest realised premium.
Revenue
The Group generated US$225.6 million of revenue in H1 2022,
compared to US$138.2 million for the same period in 2021, an
increase of 63%. The increase of US$87.4 million is due to:
-- The PenMal Assets generating US$48.3 million of crude oil
revenue (H1 2021: nil) and US$1.9 million of gas revenue (H1 2021:
nil) in H1 2022, following completion of the acquisition in August
2021;
-- Higher average realised oil prices at Montara of US$106.76
bbl (H1 2021: US$66.66 bbl) and Stag at US$128.13 bbl (H1 2021:
US$70.87 bbl) in H1 2022, contributing an additional US$68.0
million; partly offset by
-- A lower lifted volume by 452,795 bbls at Montara and Stag,
representing an estimated decrease of US$30.6 million between the
comparable periods.
Production costs
Production costs in H1 2022 were US$83.4 million (H1 2021:
US$62.5 million), an increase of US$20.9 million, predominately due
to the acquisition of the PenMal Assets which contributed US$24.7
million, and a reduction of US$3.8 million at Montara and Stag.
Production costs included:
-- The PenMal Assets incurred US$16.7 million (H1 2021: nil) of
Malaysian supplementary payments, due to the realised price
exceeding the escalated base price incorporated into the PSC
terms;
-- Repair and maintenance ("R&M") costs of US$25.3 million,
compared to US$12.1 million in H1 2021. The PenMal Assets incurred
routine maintenance of US$2.7 million (H1 2021: nil), Stag an
additional US$4.6 million on structural marine maintenance and
import hose replacement and Montara an additional US$5.9 million
predominately on Skua 11 well subsurface repairs;
-- Operational costs at US$32.6 million, an increase of US$8.3
million compared to H1 2021, predominately associated with the
PenMal Assets;
-- Logistics costs increased by US$5.1 million, with the PenMal
Assets incurring US$2.6 million (H1 2021: nil). Australia increased
by US$2.5 million due to higher fuel costs for operating vessels
and helicopters;
-- Transportation costs of US$2.9 million (H1 2021: US$0.5
million), predominately associated with the PenMal Assets and Stag
offtake arrangements;
-- Workover costs reduced by US$1.6 million due to differences in the phasing of workovers;
-- The PenMal Assets were in an underlift carried forward
position of 130,359 bbls (H1 2021: nil) resulting in a production
credit of US$9.9 million at the end of H1 2022; and
-- Montara and Stag generated a credit net inventory movement of
US$8.5 million, reflecting the increase in closing crude balances
compared to the beginning of the period.
Unit operating costs per boe were US$25.71 bbl (H1 2021:
US$28.16/bbl) before workovers and movement in inventories but
including lease payments and taking into account various other
adjustments (see IFRS measures below).
Depletion, depreciation and amortisation ("DD&A")
The depletion charges of oil and gas properties were US$35.1
million in H1 2022, compared to US$39.7 million in H1 2021.
The depletion cost on a unit basis was US$12.06/boe in H1 2022
(H1 2021: US$15.70/bbl), predominately due to the inclusion of the
PenMal Assets at US$1.61/boe which benefitted from the low cost
base following the acquisition, thus lowering the weighted average
DD&A unit charge. Stag and Montara increased over the
comparable period by US$2.63/bbl and US$1.71/bbl, respectively,
reflecting the completion of development projects and natural
decline of the production profile.
Other expenses
Other expenses represent the Group's general and administrative
("G&A") costs, one-off project costs and other miscellaneous
expenditures. Total other expenses decreased by US$7.0 million in
H1 2022 to US$5.5 million (H1 2021: US$12.5 million) due to lower
G&A, one-off project costs and hedging losses incurred in H1
2021.
Other income
Other income was US$ 5.6 million in H1 2022, an increase of
US$1.9 million (H1 2021: US$3.7 million). The increase was mainly
due to a refund of interest paid to the Australian Taxation Office
as part of an early repayment of outstanding 2019 tax amounts
previously deferred under a COVID-19 arrangement.
Taxation
The tax charge of US$37.8 million in H1 2022 (H1 2021: US$8.7
million) was split between a current tax charge of US$34.9 million
(H1 2021: US$8.9 million) and a deferred tax charge of US$2.8
million (H1 2021: credit of US$0.2 million).
The current tax charge included US$29.2 million (H1 2021:
US$11.4 million) of Australian corporate tax plus Malaysian
Petroleum Income Tax ("PITA") tax of US$5.9 million (H1 2021: nil),
offset by a net Australian Petroleum Resource Rent tax ("PRRT")
credit of US$0.2 million (H1 2021: US$2.5 million).
Australian PRRT
Australian PRRT is a cash-based tax charged to petroleum
operations at the rate of 40% and deductible from income tax. The
current tax credit of US$0.2 million is associated with Stag
operations, due to the utilisation of carried forward PRRT
losses.
Montara is not anticipated to incur PRRT expense in the future,
as it has unutilised PRRT carried forward credits of US$3.4 billion
(H1 2021: US$3.3 billion). Based on management's latest forecasts,
the historical accumulated PRRT net losses will more than offset
PRRT that would arise on future PRRT taxable profits.
Malaysian PITA
Malaysia PITA is imposed at the rate of 38% on income from
petroleum operations in Malaysia, no other taxes are imposed on
income from petroleum operations.
Deferred tax
The deferred tax movement during the period reflects timing
differences for corporate tax, PITA and PRRT. The Group incurred a
deferred tax charge of US$2.8 million in H1 2022 (H1 2021: credit
of US$0.3 million), because of timing differences between the PITA
tax and accounting treatment of the Malaysian crude under-lift
position of US$3.6 million (H1 2021: nil) and a deferred tax credit
in Australia of US$0.8 million from the timing differences of the
accounting and tax bases of the oil and gas properties .
H1 2022 RECONCILIATION OF CASH
US$'000 US$'000
--------------------------------------------- --------- ---------
Total cash and cash equivalent, 31 December
2021 117,865
Revenue 225,639
Other operating income 3,524
Production costs (83,401)
Administrative staff costs (14,482)
General and administrative expenses (4,799)
Operating cash flows before movements
in working capital 126,481
Movements in working capital (22,658)
Net tax paid (34,177)
Interest paid (600)
Purchases of intangible exploration assets,
oil and gas properties, and
plant and equipment(1) (13,364)
Other investing activities 170
Financing activities (12,089)
---------
Total cash and cash equivalent, 30 June
2022 161,628
=========
NON-IFRS MEASURES
The Group uses certain performance measures that are not
specifically defined under IFRS, or other generally accepted
accounting principles. These non-IFRS measures comprise operating
cost per barrel of oil equivalent (opex/boe), adjusted EBITDAX and
net cash.
The following notes describe why the Group has selected these
non-IFRS measures.
(1) Total capital expenditure was US$13.6 million, comprising
total capital expenditure paid of US$13.4 million, plus accrued
capital expenditure of US$0.2 million.
Operating costs per barrel of oil equivalent (Opex/boe)
Opex/boe is a non-IFRS measure used to monitor the Group's
operating cost efficiency, as it measures operating costs to
extract hydrocarbons from the Group's producing reservoirs on a
unit basis.
Opex/boe is defined as total production costs excluding crude
inventories movement, underlift/overlift, workovers (to facilitate
better comparability period to period), non-recurring R&M,
supplementary payments, DD&A, transportation, and short term
COVID-19 incentives. It includes lease payments related to
operational activities, net of any income earned from right-of-use
assets involved in production.
The adjusted production cost is divided by total produced
barrels of oil equivalent for the prevailing period to determine
the unit operating cost per boe.
Six months Six months Twelve
ended ended months ended
30 June 30 June 31 December
USD'000 except where indicated 2022 2021 2021
---------------------------------------- ----------- ----------- -------------
Production costs (reported) 83,401 62,492 206,523
Adjustments
Lease payments related to
operating activities(1) 6,371 6,444 10,619
Underlift, overlift and crude
inventories
movement(2) 18,412 (5,642) (9,680)
Workover costs(3) (8,435) (10,027) (67,006)
Other income(4) (2,410) (2,286) (4,512)
Non-recurring repair and maintenance(5) (5,510) - (6,593)
Australian transportation
costs (510) (541) (1,231)
PenMal Assets supplementary
payments(6) (16,731) - (8,255)
Australian Government JobKeeper
scheme - 196 196
PenMal non-operated assets
FPSO rectification
costs(7) (4,748) - -
Adjusted production costs 69,840 50,636 120,061
----------- ----------- -------------
Total production (barrels
of oil equivalent) 2,716,436 1,797,989 4,578,962
Operating costs per barrel
of oil equivalent 25.71 28.16 26.22
=========== =========== =============
(1) Lease payments related to operating activities are payments
considered to be operating costs in nature, including leased
helicopters for transporting offshore crews.
(2) Underlift, overlift and crude inventories movement are added
back to the calculation to match the full cost of production with
the associated production volumes (i.e., numerator to match
denominator).
(3) Workover costs are excluded to enhance comparability. The
frequency of workovers can vary significantly, across periods.
(4) Other income represents the rental income from a helicopter
rental contract (a right-of-use asset) to a third party.
(5) Non-recurring repair and maintenance costs in H1 2022
related to the Montara Skua 11 well subsurface repairs and Stag
structural marine maintenance and import hose replacement. The
costs from the year ended 2021 related to the Montara Swift North
SCM change out and facility integrity baseline survey.
(6) The supplementary payments are required under the terms of
PSCs based on Jadestone's profit oil after entitlements between the
government and joint venture partners.
(7) PenMal non-operated assets FPSO rectification costs refer to
the costs incurred to repair the FPSO BUK CLASS at PM318 and
AAKBNLP PSCs following its suspension in February 2022.
Adjusted EBITDAX
Adjusted EBITDAX is a non-IFRS measure which does not have a
standardised meaning prescribed by IFRS. This non-IFRS measure is
included because management uses the information to analyse cash
generation and financial performance of the Group.
Adjusted EBITDAX is defined as profit from continuing activities
before income tax, finance costs, interest income, DD&A, other
financial gains, non-recurring expenses and exploration assets
write-offs.
The calculation of adjusted EBITDAX is as follows:
Six months Six months Twelve
ended ended months ended
30 June 30 June 31 December
USD'000 2022 2021 2021
Revenue 225,639 138,158 340,194
Production costs (83,401) (62,492) (206,523)
Administrative staff costs (15,165) (12,067) (25,068)
Other expenses (5,503) (12,501) (26,181)
Other income, excluding interest
income 3,528 3,643 7,602
Other financial gains - - 266
----------- ----------- --------------
Unadjusted EBITDAX 125,098 54,741 90,290
Non-recurring
Net loss from oil price derivatives - 4,633 4,633
Non-recurring opex(1) 13,135 1,574 53,096
Intangible exploration assets
written off - - 5,260
Loss on contingent considerations - - 438
Other 375 4,231 4,231
----------- ----------- --------------
13,510 10,438 67,658
----------- ----------- --------------
Adjusted EBITDAX 138,608 65,179 157,948
=========== =========== ==============
(1) Non-recurring opex represents one-off major maintenance/well
intervention activities, in particular the Montara Skua 11 well
subsurface repairs and Stag structural marine maintenance and
import hose replacement . The H1 2021 non-recurring costs mainly
consisted of workover campaigns at Skua 10 & 11, while Swift
North SCM change out and facility integrity baseline survey were
included in the 2021 full year costs.
Net cash
Net cash is a non-IFRS measure which does not have a
standardised meaning prescribed by IFRS. Management uses this
measure to analyse the financial strength of the Group. The measure
is used to ensure capital is managed effectively in order to
support its ongoing operations, and to raise additional funds, if
required.
30 June 30 June 31 December
USD'000 2022 2021 2021
--------------------------- --------- -------- -----------
Cash and cash equivalents,
representing net
cash of the Group 161,628 48,291 117,865
========= ======== ===========
The cash and cash equivalents for the period ended 30 June 2021
includes restricted cash of US$1.0 million associated with an
Indonesian performance bond that was returned in Q3 2021.
2022 PRINCIPAL FINANCIAL RISKS AND UNCERTAINTIES
The Group manages principal risks and uncertainties via its risk
management framework. The Group is exposed to a variety of
political, technological, environmental, operational and financial
risks which are monitored and/or mitigated to acceptable
levels.
The Group's risk management framework provides a systematic
process for the identification of the principal risks which have
the possibility of impacting the Group's strategic objectives. The
Board regularly reviews the principal risks and defines corporate
targets based on acceptable levels of risk. The Board assesses
material risks quarterly with a full review of the risk matrix at
least twice per year.
Details of the principal risks and uncertainties faced by the
Group as at 30 June 2022 remain unchanged from the risks disclosed
in the 2021 Annual Report pages 57 to 63. The Group's risk
mitigation activities also remain unchanged.
GOING CONCERN
The Directors have adopted the going concern basis in preparing
these unaudited condensed consolidated interim financial
statements, having considered the principal financial risks and
uncertainties of the Group.
The Directors believe that the Group is well placed to manage
its financing and other business risks satisfactorily. The
Directors have a reasonable expectation that the Group will have
adequate resources to continue in operation for at least 18 months
from the date of these unaudited condensed consolidated interim
financial statements. They therefore consider it appropriate to
adopt the going concern basis of accounting in preparing these
financial statements.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm that to the best of their knowledge:
a. the condensed consolidated interim set of financial
statements has been prepared in accordance with IAS 34 Interim
Financial Reporting ;
b. the interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
c. the interim management report includes a true and fair review
of the information required by DTR 4.2.8R (disclosure of related
parties' transactions and changes therein).
By order of the Board,
Paul Blakeley
Executive Director
President & Chief Executive Officer
20 September 2022
Condensed Consolidated Statement of Profit or Loss and Other
Comprehensive Income
for the six months ended 30 June 2022
Six months Six months Twelve
ended ended months ended
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
Notes USD'000 USD'000 USD'000
----------------------------------- ------ ----------- ----------- --------------
Consolidated statement
of profit or loss
Revenue 225,639 138,158 340,194
Production costs 5 (83,401) (62,492) (206,523)
Depletion, depreciation
and amortisation 5 (35,135) (39,697) (80,215)
Administrative staff costs (15,165) (12,067) (25,068)
Other expenses 5 (5,503) (12,501) (26,181)
Other income 5,602 3,681 7,682
Finance costs 6 (4,784) (3,934) (9,075)
Other financial gains - - 266
----------- ----------- --------------
Profit before tax 87,253 11,148 1,080
Income tax expense 7 (37,767) (8,653) (14,822)
----------- ----------- --------------
Profit/(Loss) for the
period/year,
representing total comprehensive
income
for the year 49,486 2,495 (13,742)
=========== =========== ==============
Earnings/(Loss) per ordinary
share
Basic (US$) 8 0.11 0.01 (0.03)
=========== =========== ==============
Diluted (US$) 0.10 0.01 (0.03)
=========== =========== ==============
Condensed Consolidated Statement of Financial Position as at 30
June 2022
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
Notes USD'000 USD'000 USD'000
---------------------------------- ------ ---------- ---------- ------------
Assets
Non-current assets
Intangible exploration
assets 9 77,027 96,443 93,241
Oil and gas properties 10 350,404 303,625 353,592
Plant and equipment 10 8,896 1,584 8,963
Right-of-use assets 10 9,288 18,358 13,852
Other receivables and prepayment 11 46,817 4,451 48,500
Deferred tax assets 14,366 16,318 25,278
---------- ---------- ------------
Total non-current assets 506,798 440,779 543,426
---------- ---------- ------------
Current assets
Inventories 38,162 34,812 23,299
Trade and other receivables 11 28,588 63,135 37,951
Tax recoverable 7 8,162 - 9,367
Restricted cash - 1,000 -
Cash and cash equivalents 161,628 47,291 117,865
---------- ---------- ------------
Total current assets 236,540 146,238 188,482
---------- ---------- ------------
Total assets 743,338 587,017 731,908
========== ========== ============
Equity and liabilities
Equity
Capital and reserves
Share capital 12 1,229 391 559
Share based payments reserve 26,619 25,625 25,936
Merger reserve 14 146,270 146,270 146,270
Retained earnings/(Accumulated
losses) 11,553 (12,710) (31,692)
---------- ---------- ------------
Total equity 185,671 159,576 141,073
---------- ---------- ------------
Non-current liabilities
Provisions 15 413,451 290,693 410,697
Lease liabilities 1,154 9,086 4,504
Deferred tax liabilities 59,032 54,564 67,097
---------- ---------- ------------
Total non-current liabilities 473,637 354,343 482,298
---------- ---------- ------------
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
Notes USD'000 USD'000 USD'000
---------------------------------- ------ ---------- ---------- ------------
Current liabilities
Lease liabilities 9,576 11,625 11,161
Trade and other payables 16 46,575 22,760 69,090
Provisions 15 3,503 3,091 1,947
Tax liabilities 7 24,376 35,622 26,339
---------- ---------- ------------
Total current liabilities 84,030 73,098 108,537
---------- ---------- ------------
Total liabilities 557,667 427,441 590,835
---------- ---------- ------------
Total equity and liabilities 743,338 587,017 731,908
========== ========== ============
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 June 2022
Non-distributable
reserve
Share
based Distributable reserves
Share payments Merger Accumulated
capital reserve reserve losses Total
USD'000 USD"000 USD'000 USD'000 USD'000
-------------------- ---------- ------------------ --------- -------------- ---------
As at 1 January
2021 466,979 24,985 - (331,322) 160,642
Profit for
the period,
representing
total
comprehensive
income for
the
period - - - 2,495 2,495
---------- --------- -------------- ---------
Dividend paid - - - (5,000) (5,000)
Share-based
compensation - 640 - - 640
Shares issued 799 - - - 799
Capital reduction (467,387) - 146,270 321,117 -
------------------ ---------
Total transactions
with owners,
recognised
directly
in equity (466,588) 640 146,270 316,117 (3,561)
---------- ------------------ --------- -------------- ---------
As at 30 June
2021 391 25,625 146,270 (12,710) 159,576
========== ================== ========= ============== =========
As at 1 January
2021 466,979 24,985 - (331,322) 160,642
Loss for the
year,
representing
total
comprehensive
income for
the year - - - (13,742) (13,742)
---------- -------------- ---------
Capital reduction (467,387) - 146,270 321,117 -
Dividend paid - - - (7,745) (7,745)
Share-based
compensation - 951 - - 951
Shares issued 967 - - - 967
---------- ------------------ --------- -------------- ---------
Total transactions
with owners,
recognised
directly
in equity (466,420) 951 146,270 313,372 (5,827)
---------- -------------- ---------
As at 31 December
2021 559 25,936 146,270 (31,692) 141,073
========== ================== ========= ============== =========
Non-distributable
reserve Distributable reserves
Share (Accumulated
based losses)/
Share payments Merger Retained
capital reserve reserve earnings Total
USD'000 USD"000 USD'000 USD'000 USD'000
-------------------- ---------- ------------------ --------- -------------- ---------
As at 1 January
2022 559 25,936 146,270 (31,692) 141,073
Profit for
the period,
representing
total
comprehensive
income for
the
period - - - 49,486 49,486
---------- ------------------ --------- -------------- ---------
Dividend paid - - - (6,241) (6,241)
Share-based
compensation - 683 - - 683
Shares issued 670 - - - 670
------------------ ---------
Total transactions
with owners,
recognised
directly
in equity 670 683 - (6,241) (4,888)
---------- ------------------ --------- -------------- ---------
As at 30 June
2022 1,229 26,619 146,270 11,553 185,671
========== ================== ========= ============== =========
Condensed Consolidated Statement of Cash Flows for the six
months ended 30 June 2022
Six months Six months Twelve
months
ended ended ended
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
Notes USD'000 USD'000 USD'000
------------------------------------ ------ ----------- ----------- ------------
Operating activities
Profit before tax 87,253 11,148 1,080
Adjustments for:
Depletion, depreciation
and amortisation 5 28,988 33,338 69,024
Depreciation of right-of-use 5 /
assets 10 6,147 6,359 11,191
Other finance costs 6 4,643 3,784 8,487
Share-based payments 683 640 951
Provision for doubtful
debts 446 201 -
Unrealised foreign exchange
loss/(gain) 241 (735) (1,838)
Interest expense 6 141 150 150
Assets written off 13 - 5,332
Interest income (2,074) (38) (80)
Reversal of fair value
loss on oil derivatives - (471) (471)
Accretion income on non-current
VAT
receivables - - (266)
Change in fair value of
contingent payments - - 438
Allowance for slow moving
inventories - - 2,624
Operating cash flows before
movements in
working capital 126,481 54,376 96,622
Decrease/(Increase) in trade
and other
receivables 10,505 (53,777) (11,975)
(Increase)/Decrease in inventories (10,774) 5,719 9,152
(Decrease)/Increase in trade
and other
payables (22,389) (5,196) 21,631
----------- ----------- ------------
Cash generated from operations 103,823 1,122 115,430
Interest paid (600) (768) (1,505)
Tax refunded 12 - 3,652
Tax paid (34,189) (8,004) (15,486)
----------- ----------- ------------
Net cash generated/(used
in) from operating
activities 69,046 (7,650) 102,091
----------- ----------- ------------
Six months Six months Twelve
months
ended ended ended
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
Notes USD'000 USD'000 USD'000
------------------------------------ ------ ----------- ----------- ------------
Investing activities
Cash received from acquisition
of Peninsular
Malaysia assets - - 29,252
Cash paid for acquisition
of Peninsular
Malaysia assets - - (20,033)
Payment for oil and gas
properties 10 (10,687) (14,173) (51,380)
Payment for plant and equipment 10 (253) (216) (682)
Payment for intangible exploration
assets 9 (2,424) (1,476) (3,858)
Transfer from debt service
reserve account - 7,445 8,445
Interest received 170 38 80
----------- ----------- ------------
Net cash used in investing
activities (13,194) (8,382) (38,176)
----------- ----------- ------------
Financing activities
Net proceeds from issuance
of shares 670 799 967
Dividends paid (6,241) (5,000) (7,745)
Repayment of borrowings - (7,356) (7,296)
Repayment of lease liabilities (6,518) (6,116) (12,972)
Net cash used in financing
activities (12,089) (17,673) (27,046)
----------- ----------- ------------
Net increase/(decrease)
in cash and cash
equivalents 43,763 (33,705) 36,869
Cash and cash equivalents
at beginning of the
period/year 117,865 80,996 80,996
----------- ----------- ------------
Cash and cash equivalents
at end of the
period/year 161,628 47,291 117,865
=========== =========== ============
Explanation Notes to the Condensed Consolidated Interim
Financial Statements
for the six months ended 30 June 2022
1. GENERAL INFORMATION
Jadestone Energy plc (the "Company" or "Jadestone") is an oil
and gas company incorporated in the United Kingdom and registered
in England and Wales. The company registration number is 13152520
and the Company's shares are traded on AIM under the symbol
"JSE".
The financial statements are expressed in United States
Dollars.
The Group is engaged in production, development, exploration and
appraisal activities in Australia, Malaysia, Vietnam and Indonesia.
The Group's producing assets are in the Vulcan (Montara) and
Carnarvon (Stag) basins, located in shallow water offshore of
Western Australia, and in the East Piatu, East Belumut, West
Belumut and Chermingat fields, located in shallow water offshore
Peninsular Malaysia.
The Company's head office is located at 3 Anson Road, #13-01
Springleaf Tower, Singapore 079909. The registered office of the
Company is Suite 1, 3rd Floor, 11 - 12 St James's Square, London
SW1Y 4LB.
These financial statements were authorised for issue and release
by the Company's Board of Directors on 20 September 2022.
2. SIGNIFICANT EVENT DURING THE PERIOD
Montara operations update
On 17 June 2022, between three to five cubic metres of crude oil
was released to sea during a routine oil transfer between tanks on
the Montara Venture FPSO. The facility was immediately shut-in as a
precaution and the relevant authorities notified. Following a
temporary repair and isolation of the 2C tank, production was
restarted on 4 July 2022 while a permanent repair was being
developed.
On 12 August 2022, an additional defect was identified in a
ballast water tank on the Montara Venture FPSO during preparation
work for a permanent repair to the 2C tank. The Group took the
decision to temporarily shut-in production at Montara to prioritise
the permanent repairs due to an inability to simultaneously
accommodate production and inspection and repair crews.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PREPARATION
These unaudited condensed consolidated interim financial
statements (the "financial statements") are prepared in accordance
with International Accounting Standard IAS 34 Interim Financial
Reporting, as adopted by the European Union, on a going concern
basis under the historical cost convention.
These unaudited condensed consolidated interim financial
statements do not comprise statutory accounts within the meaning of
section 435 of the Companies Act 2006 ("the Act"). They do not
contain all disclosures required by IFRS for annual financial
statements and should be read in conjunction with Jadestone's
audited consolidated financial statements for the year ended 31
December 2021. Jadestone's auditors reported on those accounts;
their report was unqualified and did not draw attention to any
matters by way of emphasis.
These financial statements have been prepared on an historical
cost basis, except for financial instruments classified as
financial instruments at fair value, which are stated at their fair
values, and operating leases which are stated at the present value
of future cash payments.
In addition, these financial statements have been prepared using
the accrual basis of accounting.
GOING CONCERN
As at 30 June 2022, the Group has a total cash and cash
equivalents of US$161.6 million, and the Group managed to keep the
cash levels within the range of US$110.0 - 160.0 million between
July and August 2022, after the settlements of trade related
expenditure. The average Dated Brent crude price in July and August
2022 was US$102.73/bbl, largely aligned with the average price
during the first half of 2022. Hence the Group was able to continue
to generate material cash inflows from the liftings in Australia
and Malaysia subsequent to June 2022 end.
The Group regularly monitors its cash, funding and liquidity
position. Near term cash projections are revised and underlying
assumptions reviewed, generally monthly, and longer-term
projections are also updated regularly. All principal risk and
uncertainties faced by the Group are disclosed in the 2021 Annual
Report pages 57 to 63 and have been considered in the Group's near
and longer term cash projections. The principal risk and
uncertainties remain unchanged at the current period end. For the
purposes of the Group's going concern assessment, we have reviewed
cash projections for the period from 1 July 2022 to 31 December
2023, the 'going concern period'.
Having taken into consideration the above factors, the Directors
have reasonable expectation that the Group has adequate resources
to continue in operational existence for the going concern period.
Accordingly, they adopted the going concern basis in preparing
these unaudited condensed consolidated interim financial
statements.
Adoption of new and revised standards
New and amended IFRS standards that are effective for the
current period
The Group has applied the following amendment that is relevant
to the Group for the first time with effect from 1 January
2022.
- Amendments to IAS 37 Onerous Contracts - Cost of Fulfilling a Contract
- Amendments to IFRS 3 Reference to Conceptual Framework
- Amendments to IFRSs Annual Improvements to IFRS Standards 2018 - 2020
The amendments are effective for annual periods beginning on 1
January 2022 and require prospective application. The adoption of
these amendments has not resulted in changes to the Group's
accounting policies.
4. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION
UNCERTAINTY
Climate change and energy transition
The Group has assessed the potential impacts of climate change
and the transition to a lower carbon economy in preparing these
financial statements. The Group's assumptions relating to demand
for oil and gas and their impact on the Group's long-term price
assumptions remain the same as disclosed in the Jadestone's audited
consolidated financial statements for the year ended 31 December
2021. The Group also takes into consideration the forecasted
long-term prices and demand for oil and gas under the Paris aligned
scenarios. The forecasted long-term prices and demand for oil and
gas under the Paris aligned scenarios remain the same as disclosed
in Jadestone's audited consolidated financial statements for the
year ended 31 December 2021 .
Details of the Group's environment, social and governance
("ESG") plans and activities are disclosed in the 2021 Annual
Report pages 26 to 49 and the ESG section above.
Critical accounting judgments and key sources of estimation
uncertainty
In the application of the Group's accounting policies,
management is required to make judgments, estimates and assumptions
about the carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors
that are considered to be relevant. Actual results may differ from
these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised, if the revision
affects only that period, or in the period of the revision and
future periods, if the revision affects both current and future
periods.
The key judgements and sources of estimation uncertainty remain
the same as disclosed in Jadestone's audited consolidated financial
statements for the year ended 31 December 2021 .
5. OPERATING COSTS
Six months Six months Twelve
ended ended months ended
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
USD'000 USD'000 USD'000
------------------------------- ----------- ----------- --------------
Production costs 80,533 61,951 203,714
Tariffs and transportation
costs 2,868 541 2,809
----------- ----------- --------------
Total production costs 83,401 62,492 206,523
=========== =========== ==============
Depletion and amortisation
of oil and
gas properties 28,681 33,054 68,516
Depreciation of plant
equipment and
right-of-use assets 6,454 6,643 11,699
----------- ----------- --------------
Total depletion, depreciation
and
amoritisation 35,135 39,697 80,215
=========== =========== ==============
Corporate costs 5,057 12,230 21,548
Other operating expenses 446 271 4,633
----------- ----------- --------------
Total other expenses 5,503 12,501 26,181
=========== =========== ==============
6. FINANCE COSTS
Six months Six months Twelve
ended ended months
ended
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
USD'000 USD'000 USD'000
---------------------- ----------- ----------- ------------
Interest expense and
others 600 1,465 3,155
Accretion expense 4,184 2,469 5,920
4,784 3,934 9,075
=========== =========== ============
7. INCOME TAX EXPENSE
Six months Six months Twelve
ended ended months
30 June 30 June ended
2022 2021 31 December
Unaudited Unaudited 2021
USD'000 USD'000 Audited
USD'000
--------------------------------- ---------- ---------- ------------
Current tax
Corporate tax charge/(credit) 29,154 11,405 (486)
Overprovision in prior
year - - (270)
---------- ---------- ------------
29,154 11,405 (756)
Australian petroleum resource
rent
tax ("PRRT") (162) (2,496) (1,374)
Malaysian petroleum income
tax
("PITA") 5,928 - 9,469
34,920 8,909 7,339
---------- ---------- ------------
Deferred tax
Corporate tax (4,042) (3,033) 5,247
PRRT 3,244 2,777 3,371
PITA 3,645 - (1,135)
========== ========== ============
2,847 (256) 7,483
---------- ---------- ------------
37,767 8,653 14,822
========== ========== ============
8. EARNINGS/(LOSS) PER ORDINARY SHARE
The calculation of the basic and diluted earnings/(loss) per
share is based on the following data:
Six months Six months Twelve
ended ended months
ended
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
USD'000 USD'000 USD'000
------------------------- ----------- ----------- ------------
Profit/(Loss) for the
purposes of basic
and diluted per share,
being the net
profit for the period
attributable to
equity holders of the
Company 49,486 2,495 (13,742)
=========== =========== ============
Number Number Number
------------------------------ ------------ ------------ ------------
Weighted average number
of ordinary
shares for the purposes
of basic EPS 465,485,869 462,894,872 463,567,519
Effect of dilutive potential
ordinary
shares - share options 6,029,827 6,100,692 -
Effect of dilutive potential
ordinary
shares - performance
shares 595,998 - -
Effect of dilutive potential
ordinary
shares - restricted
shares 178,887 - -
------------ ------------ ------------
Weighted average number
of ordinary
shares for the purposes
of diluted EPS 472,290,581 468,995,564 463,567,519
============ ============ ============
The calculation of diluted EPS for the six months ended 30 June
2022 includes 6,029,827 of weighted average dilutive ordinary
shares available for exercise from in-the-money vested options (six
months ended 30 June 2021: 6,100,692).
The calculation of diluted EPS for the six months ended 30 June
2022 includes 595,998 of weighted average contingently issuable
shares associated under the Company's performance share plan based
on the respective performance measures up to the period end (six
months ended 30 June 2021: nil).
The calculation of diluted EPS for the six months ended 30 June
2022 includes 178,887 of weighted average contingently issuable
shares under the Company's restricted share plan (six months ended
30 June 2021: nil).
Six months Six months Twelve
ended ended months ended
30 June 30 June 31 December
2022 2021 2021
Earnings/(Loss) per share Unaudited Unaudited Audited
(US$)
* Basic 0.11 0.01 (0.03)
========== ========== =============
-
* Diluted 0.10 0.01 (0.03)
========== ========== =============
9. INTANGIBLE EXPLORATION ASSETS
Total
USD'000
-------------------------------------------------- ----------
Cost
As at 1 January 2021 151,125
Additions 1,832
Reversal (6,059)
Written off (50,455)
----------
As at 30 June 2021 96,443
Additions 2,102
Changes in asset retirement obligations (44)
Written off (5,260)
As at 31 December 2021 93,241
Additions 2,681
Reclassification (18,895)*
----------
As at 30 June 2022 77,027
==========
Impairment
As at 1 January 2021 50,455
Additions (50,455)
----------
As at 30 June 2021/31 December 2021/30 June 2022 -
==========
Net book value
As at 30 June 2021 (unaudited) 96,443
==========
As at 31 December 2021 (audited) 93,241
==========
As at 30 June 2022 (unaudited) 77,027
==========
* The reclassification of US$18.9 million relates to the Lemang
PSC in Indonesia. On 6 June 2022, the final investment decision was
taken following regulatory approval to award the engineering,
procurement, construction and installation (" EPCI") contract which
established commercial viability. The capitalised cost of US$18.9
million was transferred to development assets as disclosed in Note
10.
10. PROPERTY, PLANT AND EQUIPMENT
Oil and gas properties
Production Development Plant Right-of-use
assets assets and equipment assets Total
USD'000 USD'000 USD'000 USD'000 USD'000
------------------ ---- ----------- --- ------------ --- --------------- --- ------------- --- --------
Cost
As at 1 January
2021 496,992 - 4,612 45,514 547,118
Additions 14,173 - 216 1,044 15,433
------------
As at 30
June 2021 511,165 - 4,828 46,558 562,551
Changes in
asset
restoration
obligations 23,894 - - - 23,894
Acquisition
of
PenMal Assets 21,744 - - - 21,744
Additions 38,691 - 466 1,810 40,967
Written off - - (169) - (169)
Transfer - - 7,209 - 7,209
------------
As at 31
December
2021 595,494 - 12,334 48,368 656,196
Additions 10,687 - 253 1,583 12,523
Reclassification - 18,895 - - 18,895
Written off (3,704) - (67) (5,981) (9,752)
As at 30
June 2022 602,477 18,895 12,520 43,970 677,862
=========== ============ =============== ============= ========
Accumulated
depletion,
depreciation
and
amortisation
As at 1 January
2021 179,316 - 2,960 21,841 204,117
Charge for
the period 28,224 - 284 6,359 34,867
------------
As at 30
June 2021 207,540 - 3,244 28,200 238,984
Charge for
the period 34,362 - 224 6,316 40,902
Written off - - (97) - (97)
------------
As at 31
December
2021 241,902 - 3,371 34,516 279,789
Charge for
the period 32,770 - 307 6,147 39,224
Written off (3,704) - (54) (5,981) (9,739)
As at 30
June 2022 270,968 - 3,624 34,682 309,274
Net book
value
As at 30
June 2021
(unaudited) 303,625 - 1,584 18,358 323,567
As at 31
December
2021 (audited) 353,592 - 8,963 13,852 376,407
As at 30
June 2022
(unaudited) 331,509 18,895 8,896 9,288 368,588
11. TRADE AND OTHER RECEIVABLES
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
USD'000 USD'000 USD'000
Non-current
Other receivables
At beginning of period/year 41,726 - -
Acquisition of PenMal Assets - - 42,092
Change in asset restoration
obligations - - (672)
Cess paid 169 - 306
At end of period/year 41,895 - 41,726
Prepayment - - 2,000
VAT receivables 4,922 4,451 4,774
46,817 4,451 48,500
Current
Trade receivables 535 46,291 9,143
Prepayments 7,166 6,093 3,770
Other receivables and deposits 2,175 6,621 13,281
Amount due from joint arrangement
partners (net) 226 - 2,203
Underlift crude oil inventories 16,802 - 6,855
PRRT receivables 162 2,496 -
GST/VAT receivables 1,522 1,634 2,699
28,588 63,135 37,951
75,405 67,586 86,451
12. SHARE CAPITAL
No. of USD'000
shares
Issued and fully paid
As at 1 January 2021 461,842,811 466,979
Issued during the period 1,856,666 800
Capital reduction, at GBP0.499 each - (467,388)
As at 30 June 2021 463,699,477 391
Issued during the period 1,381,761 168
As at 31 December 2021 465,081,238 559
Issued during the period 972,378 670
As at 30 June 2022 466,053,616 1,229
===========
The Company has one class of ordinary share. Fully paid ordinary
shares carry one vote per share without restriction, and carry a
right to dividends as and when declared by the Company.
13. DIVID
On 6 June 2022, the Directors declared the 2021 final dividend
of 1.34 US cents/share, equivalent to 1.07 GB pence/share based on
the spot exchange rate of 0.7954 , equivalent to a total
distribution of US$ 6.2 million. The dividend was paid on 5 July
2022.
14. MERGER RESERVE
The merger reserve arose from the difference between the
carrying value and the nominal value of the shares of the Company,
following completion of the internal reorganisation in 2021.
15. PROVISIONS
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
USD'000 USD'000 USD'000
Non-current
Asset restoration obligations 408,585 286,219 404,400
Others 4,866 4,474 6,297
413,451 290,693 410,697
Current
Others 3,503 3,091 1,947
416,954 293,784 412,644
16. TRADE AND OTHER PAYABLES
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
USD'000 USD'000 USD'000
Trade payables 5,602 3,377 26,847
Other payables 4,862 1,662 7,627
Accruals 33,267 17,714 29,699
Contingent payment - - 3,000
Malaysian supplementary payment
payables 2,839 - 1,907
GST/VAT payables 5 7 10
46,575 22,760 69,090
17. SEGMENT INFORMATION
Information reported to the Group's Chief Executive Officer (the
chief operating decision maker) for the purposes of resource
allocation is focused on two reportable/business segments driven by
different types of activities within the upstream oil and gas value
chain, namely producing assets and secondly development and
exploration assets. The geographic focus of the business is on
Southeast Asia ("SEA") and Australia.
Revenue and non-current assets information based on the
geographical location of assets respectively are as follows:
Producing Exploration/
assets development
Australia SEA SEA Corporate Total
USD'000 USD'000 USD'000 USD'000 USD'000
Six months ended 30 June 2022 (unaudited)
Revenue
Liquids revenue 175,476 48,256 - - 223,732
Gas revenue - 1,907 - - 1,907
175,476 50,163 - - 225,639
Production cost (58,792) (24,609) - - (83,401)
DD&A (33,065) (1,771) (117) (182) (35,135)
Administrative staff costs (7,239) (2,023) (1,189) (4,714) (15,165)
Other expenses (2,225) (619) (663) (1,996) (5,503)
Other income 5,185 54 14 349 5,602
Finance costs (3,397) (1,173) (200) (14) (4,784)
Profit/(Loss) before tax 75,943 20,022 (2,155) (6,557) 87,253
Additions to non-
current assets 12,303 322 2,829 67 15,521
Non-current assets 340,094 58,084 93,650 604 492,432
Producing Exploration/
assets development
Australia SEA SEA Corporate Total
USD'000 USD'000 USD'000 USD'000 USD'000
Six months ended 30 June 2021 (unaudited)
Revenue
Liquids revenue 138,158 - - - 138,158
Hedging income - - - - -
138,158 - - - 138,158
Production costs (62,492) - - - (62,492)
DD&A (39,261) - (139) (297) (39,697)
Administrative staff
costs (5,137) - (1,397) (5,533) (12,067)
Other expenses (8,807) - (897) (2,797) (12,501)
Other income 3,257 - 36 388 3,681
Finance costs (3,907) - (26) (1) (3,934)
Profit/(Loss) before
tax 21,811 - (2,423) (8,240) 11,148
Additions to non-
current assets 14,971 - 2,145 196 17,312
Non-current assets 329,830 - 93,789 842 424,461
Twelve months ended 31 December 2021 (audited)
Revenue
Liquids revenue 293,566 45,644 - - 339,210
Gas revenue - 984 - - 984
293,566 46,628 - - 340,194
Production cost (182,001) (24,522) - - (206,523)
DD&A (75,848) (3,621) (281) (465) (80,215)
Administrative staff
costs (13,364) (1,433) (1,612) (8,659) (25,068)
Other expenses (14,970) (2,466) (5,875) (2,870) (26,181)
Other income 7,038 9 76 559 7,682
Finance costs (7,452) (875) (503) (245) (9,075)
Other financial gains - - 266 - 266
Profit/(Loss) before
tax 6,969 13,720 (7,929) (11,680) 1,080
Additions to non-
current assets 57,130 64,117 4,744 183 126,174
Non-current assets 366,959 59,532 90,938 719 518,148
Non-current assets as shown here comprises oil and gas
properties, intangible exploration assets, right-of-use assets,
other receivables, restricted cash and plant and equipment used in
corporate offices. Deferred tax assets are excluded from the
segmental note but included in the Group's consolidated statement
of financial position.
18. EVENTS AFTER THE REPORTING PERIOD
Acquisition of the interest in North West Shelf oil producing
fields
On 28 July 2022, the Group announced the execution of a sale and
purchase agreement with BP Developments Australia Pty Ltd to
acquire BP's non-operated 16.67% working interest in the Cossack,
Wanaea, Lambert and Hermes oil field development, offshore
Australia. The total headline consideration is US$20.0 million plus
an upfront payment of US$41.0 million into a decommissioning trust
fund with two further equal instalments of US$20.5 million into the
decommissioning trust fund due on or about 31 December 2022 and
2023, respectively.
The effective date of the transaction is 1 January 2020 and the
economic benefits from the effective date until the closing date
will be adjusted in the final consideration price. Completion of
the transaction is subject to customary closing conditions
including various regulatory approvals. The Group anticipates
completion of the transaction to occur in Q4 2022.
Launch of the share buyback programme
On 2 August 2022, the Company launched a share buyback programme
in accordance with the authority granted by the shareholders at the
Company's Annual General Meeting held on 30 June 2022. The maximum
pecuniary amount of the programme is US$25.0 million and the
programme will not exceed 46,574,528 ordinary shares. There is no
certainty on the volume of shares that may be acquired, nor any
certainty on the pace and quantum of the acquisitions.
Glossary
GBP British pound sterling
2C best estimate contingent resource, being quantities
of hydrocarbons which are estimated, on a given
date, to be potentially recoverable from known
accumulations but which are not currently considered
to be commercially recoverable
AAKBNLP Abu, Abu Kecil, Bubu, North Lukut, and Penara oilfields
AIM Alternative Investment Market
API American Petroleum Institute gravity
bbl barrel
bbls/d barrels per day
boe barrels of oil equivalent
boe/d barrels of oil equivalent per day
capex capital expenditures
DD&A depletion, depreciation and amortisation
EBITDAX earnings before interest tax, depreciation, amortisation
and exploration
EPS earnings per share
FPSO floating production storage and offloading
GB pence, Great Britain pence
GBp
GHG greenhouse gases
GST goods and services tax
IFRS International Financial Reporting Standards
LPG Liquefied petroleum gas
LTI Lost Time Injury
mm million
mscf/d thousand standard cubic feet per day
mmscf million standard cubic feet
opex operating expenditures
PenMal Assets Peninsular Malaysia Assets
PITA Malaysian Petroleum Income Tax
PRRT Petroleum Resource Rent Tax
PSC production sharing contract
reserves hydrocarbon resource that is anticipated to be
commercially recovered from known accumulations
from a given date forward
SEA Southeast Asia
US$ or USD United States dollar
VAT value-added tax
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.
A. 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 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,
and is disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
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
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IR SEISISEESESU
(END) Dow Jones Newswires
September 20, 2022 02:00 ET (06:00 GMT)
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