TIDMJSE
RNS Number : 2266T
Jadestone Energy PLC
13 November 2023
Operational Update
13 November 2023 - Singapore: Jadestone Energy plc ("Jadestone",
the "Company" or the "Group") an independent upstream production
company focused on the Asia-Pacific region, is pleased to provide
the following operational update.
Group Production and Guidance
Recent production performance demonstrates the positive effect
of the Group's ongoing investment activity and recent acquisitions,
delivering a more balanced and diversified portfolio. Six assets
are now in production prior to the addition of the Akatara project
in Indonesia, which remains firmly on schedule for first gas during
H1 2024.
Since 1 April 2023, Group production has averaged c.14,400 boe/d
and has averaged c.13,100 boe/d year-to-date. Based on current
expectations for the remainder of 2023, production is now expected
to be towards the upper end of the April to December guidance range
of 13,500 - 15,000 boe/d (equivalent to an annual 2023 guidance
range of 12,600 - 13,700 boe/d), with the following highlights:
-- PM323 production in Malaysia has doubled, and is currently
c.5,300 bbls/d net to Jadestone, largely from the planned infill
drilling campaign on the East Belumut field which has delivered
results significantly ahead of expectations (see below for further
detail);
-- Montara has averaged c.5,700 bbls/d in recent months, with
good well performance offset by occasional brief interruptions
associated with offtake arrangements, including the replacement of
a short section of offload hose at the shuttle tanker;
-- Production from the CWLH fields continues to exceed the
Company's expectations, averaging c.2,300 bbls/d net in recent
months due to strong reservoir performance and high uptime at the
Okha FPSO; and
-- PM329 production in Malaysia, Sinphuhorm in Thailand and Stag
in Australia are all broadly on plan showing the benefits of
diversified production.
2023 guidance for capex (US$110-125 million) and operating
costs[1] are reiterated.
Akatara
The Akatara development project is currently 83% complete and
remains on schedule for commissioning activities in the first
quarter of 2024 and first gas before mid-2024. Approximately 1,450
workers are currently on site, with c.2.9 million safe manhours
worked to date on the Akatara project.
The Elang-1 rig is scheduled to mobilise to the Akatara
development at the end of November 2023 to workover five existing
wells which will provide the raw gas feed into the Akatara Gas
Processing Facility.
Malaysia
-- The first well in the East Belumut infill drilling campaign
on the PM323 PSC was, as previously reported, successfully drilled
and brought onstream in September 2023 and is currently producing
c.1,400 bbls/d.
-- The third well was successfully drilled and completed in late
October 2023, testing at a gross rate of c.3,100 bbls/d and was
subsequently brought onstream.
-- The fourth well in the programme has also been successfully
drilled and has been tested at a gross rate of c.1,700 bbls/d in
recent days.
-- As a result, the three wells drilled to date in the 2023
drilling programme are currently producing at a gross rate of
c.6,200 bbls/d, significantly exceeding the pre-drill gross rate
expectation for all four wells of 3,500 bbls/d. Consequently, gross
PM323 production has reached c.8,800 bbls/d in recent days, or
c.5,300 bbls/d net to Jadestone.
-- The Naga-2 rig will now complete the drilling of the second
well in the programme, which was temporarily suspended due to fluid
losses. The well is expected to reach total depth in the second
half of November.
-- The capex for the 2023 East Belumut drilling campaign is now
estimated at US$28 million net to Jadestone, or approximately US$7
million (net) more than pre-drill expectations, primarily due to
the extension required to complete the drilling of the second
infill well. This increase is reflected in the reiterated 2023
capex guidance above. The overall cost of the drilling campaign is
expected to be fully cost recovered by Q2 2024 due to the higher
rates of production seen from the wells drilled to date.
Liftings
The Company expects to lift approximately 1.6 million barrels
across November and December 2023, including a c.650,000 barrel
lifting from the CWLH fields and c.450,000 barrels from
Montara.
Paul Blakeley, President and CEO commented:
"Production has strengthened recently, with the stabilisation of
Montara, strong growth from the successful Malaysia infill drilling
campaign and solid performance from all other producing assets. The
planned diversification of the portfolio is working, providing
greater resilience to our business, and the addition of Akatara
production next year will further enhance this.
Progress at Akatara remains on schedule and, at 83% complete,
first gas has been substantially de-risked, with pre-commissioning
of certain key systems expected to commence shortly. The drilling
programme at East Belumut has been very successful, supporting
near-term growth, and the results provide encouragement for further
drilling within the field with another four well campaign already
being considered."
-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)
Will Soutar
Cameron Jones
Camarco (Public Relations Advisor) +44 (0) 203 757 4980 (UK)
Billy Clegg jse@camarco.co.uk
Andrew Turner
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 may contain certain forward-looking statements
with respect to the Company's expectations and plans, strategy,
management's objectives, future performance, production, reserves,
costs, revenues and other trend information. These statements are
made by the Company in good faith based on the information
available at the time of this announcement, but such statements
should be treated with caution due to inherent risks and
uncertainties. These statements and forecasts involve risk and
uncertainty because they relate to events and depend upon
circumstances that may occur in the future. There are a number of
factors which could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking
statements and forecasts. The statements have been made with
reference to forecast price changes, economic conditions and the
current regulatory environment. Nothing in this announcement should
be construed as a profit forecast. Past share performance cannot be
relied upon as a guide to future performance. The Company does not
assume any obligation to publicly update the information, except as
may be required pursuant to applicable laws.
This announcement does not include inside information.
[1] Underlying operating cost guidance is US$180-210 million.
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 statement of profit or loss, and are expected to total
US$65-75 million in 2023.
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