TIDMJSE
RNS Number : 6416G
Jadestone Energy PLC
20 July 2023
Trading update for the half-year ending 30 June 2023
20 July 2023 - Singapore: Jadestone Energy plc ("Jadestone", the
"Group" or the "Company"), an independent oil and gas production
company focused on the Asia-Pacific region, provides a trading
update for the half-year ending 30 June 2023. The financial
information in this update has not been audited and may be subject
to further review. Jadestone intends to announce its half-year 2023
unaudited results in September 2023.
Highlights
-- 2023 Group production, underlying operating cost[1] and
capital expenditure guidance reaffirmed.
-- The Akatara gas development project in Indonesia is 42%
complete and remains on plan, budget and schedule for first gas in
H1 2024.
-- East Belumut infill drilling campaign offshore Malaysia on
schedule to commence in August 2023.
Paul Blakeley, President and CEO commented:
"After a challenging period, we consider mid-year 2023 to be an
inflection point for Jadestone as we start to rebuild shareholder
confidence in our investment case and operational delivery. We are
benefiting from much greater and more diversified production
streams, with the potential to return to a net cash position as
early as end-2024.
Our first-half 2023 performance reflects Montara production
being shut in until late-March 2023 and a softening in oil
realisations year-on-year, driven by lower Brent prices. Montara is
producing in line with expectations, with work continuing on the
tank inspection and repair programme to increase storage capacity
offshore and to reduce temporary logistics costs back to normal
levels. Our financial position has been significantly strengthened
following the closing of the RBL in May and the additional funding
transactions in June, and we are focused on delivering to our
guidance. The Akatara development project, now 42% complete,
remains on schedule and budget and we are preparing for our first
infill drilling campaign in Malaysia, which we expect to commence
in late-August. These are important steps for near-term growth, and
we are confident that their successful execution will narrow the
current significant discount to fair value, which is a key
priority."
H1 2023 Operating Performance
H1 2023 H1 2022
Production
-------- --------- --------
Group production[2] boe/d c.12,300 15,008
-------- --------- --------
- Montara bbls/d c.2,900 7,509
-------- --------- --------
- Stag bbls/d c.2,900 2,057
-------- --------- --------
- CWLH bbls/d c.1,600 n/a
-------- --------- --------
- Peninsular Malaysia
("PenMal") boe/d c.3,900 5,443
-------- --------- --------
- Sinphuhorm boe/d c.1,100 n/a
-------- --------- --------
Liftings
-------- --------- --------
- Oil mmbbls 1.0 2.0
-------- --------- --------
- Gas mmcf 0.8 0.9
-------- --------- --------
Group production for H1 2023 of c.12,300 boe/d primarily
reflects the shut-in of Montara production until late-March 2023
and lower production at the PenMal assets largely due to natural
decline, offset by higher production from Stag as a result of the
H2 2022 infill drilling, a full period of the CWLH assets acquired
in H2 2022 and the initial contribution from Sinphuhorm since its
acquisition in February 2023.
When comparing to Group production guidance of 13,500 - 17,000
boe/d between April and December 2023 (inclusive), production
between April and June 2023 averaged c.14,800 boe/d. Group
production has averaged c.16,000 boe/d in recent weeks, with
Montara averaging c.6,000 bbls/d.
Oil liftings were lower year-on-year, primarily due to the
shut-in at Montara (one lifting in H1 2023 vs. three liftings in H1
2022) and the timing of liftings from the PenMal assets. At 30 June
2023, there was a combined inventory and underlift position of
c.540,000 bbls.
H1 2023 Financial Performance[3]
H1 2023 H1 2022
Average oil price
realisation US$/bbl 86.2 109.5
------------- -------- --------
- Brent US$/bbl 77.3 102.5
------------- -------- --------
- Premium US$/bbl 8.9 7.0
------------- -------- --------
Revenues US$ million 86.7 225.6
------------- -------- --------
Underlying operating
expenses[4] US$ million 87.1 69.8
------------- -------- --------
Capital expenditure US$ million 25.9 13.6
------------- -------- --------
Net cash/(debt) at
30 June US$ million 7.1 161.6
------------- -------- --------
The average oil price realisation for H1 2023 reflects the
year-on-year decline in Brent prices, partially offset by an
increase in the average realised premium, due to Stag (which
achieves the highest oil price realisations in the Group) being a
higher proportion of liftings in H1 2023 compared to H1 2022.
Revenues in H1 2023 reflect the trends in liftings and realisations
highlighted above.
Underlying operating expenses are consistent with full-year 2023
guidance, with H1 2023 largely reflecting a full period of CWLH
opex and higher logistics costs associated with the Australia
operations. The majority of H1 2023 capital investment was incurred
on the Akatara gas development.
Net cash of US$7.1 million at 30 June 2023 reflects c.US$118
million of consolidated Group cash balances[5] (restricted and
unrestricted cash) and c.US$111 million of debt drawn at 30 June
2023 under the Company's reserves-based lending facility.
Based on the revenues and underlying operating expenses
disclosures in the table above, Jadestone expects to generate a net
loss for the first half of 2023.
The Company's 2023 production, underlying operating costs and
capital expenditure guidance are all unchanged:
l 2023 Group production (April to December inclusive): 13,500 -
17,000 boe/d
l Underlying operating costs(4) : US$180-210 million
l Capital expenditure: US$110-140 million, with the majority to
be spent in the second half of 2023 due to the timing and phasing
of spend on the Akatara development project and the East Belumut
infill drilling campaign.
The Akatara development project is currently 42% complete and
remains on schedule and budget for first gas in H1 2024, as does
the PM323 infill drilling campaign in Malaysia, where the rig is
anticipated on location in late-August 2023.
-ends-
For further information, please contact:
Jadestone Energy plc
Paul Blakeley, President and CEO +65 6324 0359 (Singapore)
Bert-Jaap Dijkstra, CFO
Phil Corbett, Investor Relations Manager +44 (0) 7713 687467 (UK)
ir@jadestone-energy.com
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
Elfie Kent
About Jadestone Energy
Jadestone Energy plc is an independent oil and gas company
focused on the Asia-Pacific region. It has a balanced and
increasingly diversified portfolio of production and development
assets in Australia, Malaysia, Indonesia, Thailand and Vietnam, all
stable jurisdictions with a positive upstream investment
climate.
Led by an experienced management team with a track record of
delivery, who were core to the successful growth of Talisman
Energy's business in Asia-Pacific, the Company is pursuing a
strategy to grow and diversify the Company's production base both
organically, through developments such at Akatara in Indonesia and
Nam Du/U Minh in Vietnam, as well as through acquisitions that fit
within Jadestone's financial framework and play to the Company's
strengths in managing maturing oil assets. Jadestone delivers value
in its acquisition strategy by enhancing returns through operating
efficiencies, cost reductions and increased production through
further investment.
Jadestone is a responsible operator and well positioned for the
energy transition through its increasing gas production, by
maximising recovery from existing brownfield developments and
through its Net Zero pledge on Scope 1 & 2 GHG emissions from
operated assets by 2040. This strategy is aligned with the IEA Net
Zero by 2050 scenario, which stresses the necessity of continued
investment in existing upstream assets to avoid an energy crisis
and meet demand for oil and gas through the energy transition.
Jadestone Energy plc (LEI: 21380076GWJ8XDYKVQ37) is listed on
the AIM market of the London Stock Exchange (AIM: JSE). The Company
is headquartered in Singapore. For further information on the
Company please visit www.jadestone-energy.com .
This announcement does not contain inside information.
Glossary
bbl barrel of oil
bbls/d barrels of oil per day
-------------------------------------
boe barrel of oil equivalent
-------------------------------------
boe/d barrels of oil equivalent per day
-------------------------------------
CWLH Cossack, Wanaea, Lambert, and Hermes
-------------------------------------
mmbbls million barrels
-------------------------------------
mmcf million cubic feet of gas
-------------------------------------
RBL reserves-based loan
-------------------------------------
[1] Underlying operating cost guidance excludes non-recurring
items and certain costs such as workovers, transportation and
expenditure associated with non-producing assets offshore Malaysia.
These excluded items are included in the reported production costs
in the Group's income statement.
[2] Totals may not add due to rounding.
[3] The Group's H1 2023 liftings, revenues, operational and
capital expenditures do not include any contribution from the
Sinphuhorm asset, which will be treated as an investment in
associate and hence equity accounted in the Group's consolidated
financial statements.
[4] Refer to Footnote 1. The H1 2023 adjustments to reported
production costs which result in the underlying operating expenses
figure are still under review and may be subject to change.
[5] Consolidated Group cash balances are inclusive of the US$50
million net proceeds from the placing and open offer in June
2023.
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