TIDMJSE
RNS Number : 5375V
Jadestone Energy PLC
04 December 2023
Strong Results from Malaysia Drilling Campaign and Corporate
Update
4 December 2023 - Singapore: Jadestone Energy plc ("Jadestone",
the "Company" or the "Group") an independent upstream production
company focused on the Asia-Pacific region, announces that the
final well in the Company's 2023 East Belumut field drilling
campaign offshore Peninsular Malaysia has now been completed. The
overall programme has delivered results significantly ahead of
expectations. The Company is also pleased to provide an update on
Group production, progress on the Akatara project and recent crude
oil liftings.
East Belumut Infill Drilling Campaign (Jadestone 60% working
interest and operator)
The fourth and final well in the East Belumut infill drilling
campaign is currently being tested after reaching c.4,600 metres
measured depth in the south west of the field. This is
approximately 730 metres measured depth more than originally
planned, due to the better than expected oil column encountered at
the toe of the well, and the longest reach horizontal well ever
drilled in the field. Overall, a 1,700 metre horizontal section was
drilled in the target formation, aided by successful optimisation
of the well trajectory using geo-steering tools. The well is
expected to produce at initial rates in excess of 3,500 bbls/d.
Combined with the three wells drilled to date, which are
currently producing at an aggregate gross rate of c.7,000 bbls/d,
the results of the East Belumut infill campaign have far exceeded
expectations, which were for initial gross aggregate rates from all
four wells of 3,500 bbls/d. The drilling capex will be cost
recovered and pay-back is expected by Q2 2024 next year. The well
results are already being used to update the geological model for
the East Belumut field, will have a positive impact on reserves,
and are likely to provide a number of new infill targets for future
drilling campaigns.
Group Production Update
Since the Company's most recent announcement on 13 November
2023, overall group production performance has continued to be
robust, averaging c.20,000 boe/d during this period. The main
factors driving this positive outcome are:
-- Recent average production of c.7,000 boe/d net (11,200 boe/d
gross) from the Peninsular Malaysia assets, in large part due to
the success of the infill drilling campaign on the East Belumut
field detailed above; and
-- Average production of c.7,500 bbbls/d from Montara, based on
strong well performance and FPSO uptime.
Overall, since 1 April 2023, Group production has averaged
c.14,900 boe/d, equivalent to an average of c.13,500 boe/d
year-to-date. As previously reported, production is now expected to
be towards the upper end of the April to December 2023 guidance
range of 13,500 - 15,000 boe/d (equivalent to an annual 2023
guidance range of 12,600 - 13,700 boe/d). This incorporates a
planned shutdown for one week at Montara in early December for
compressor maintenance.
2023 guidance for capex (US$110-125 million) and operating costs
[1] are also reiterated.
Akatara
The Akatara development project is currently 87% complete and
pre-commissioning activities have commenced, with the project
remaining on schedule for first gas before mid-2024. Approximately
1,600 workers are currently on site, with c.3.2 million safe
manhours worked to date on the Akatara project.
The mobilisation of the Elang-1 rig to the Akatara project is
now expected in the third week of December 2023 (previously end of
November) to workover five existing wells which will provide the
raw gas feed into the Akatara Gas Processing Facility. This change
in timing will not impact the first gas date.
Liftings
Since the beginning of Q4 2023, the Company has lifted
approximately 1.4 mmboe generating significant revenues. A further
370,000 boe are expected to be lifted in December, with proceeds
expected to be received before year-end.
Paul Blakeley, President and CEO commented:
"The East Belumut drilling programme has proved to be very
successful, significantly exceeding our pre-drill expectations and
testament to the hard work and enthusiasm of the many people across
the business involved in this campaign. This is our core strategy
at work, having acquired the interests in 2021 and now starting to
add value through our differentiated view of the subsurface
potential. These results will significantly expand the scope for
further infill drilling on East Belumut and I expect will generate
a number of well campaigns for the future.
Production performance across the portfolio has been solid
recently, underpinned by strong performance in Malaysia and
stabilisation of production at Montara. We will continue to work
hard to make this "business as usual" in the future. At Akatara,
the project continues to make good progress and remains on
schedule, still comfortably targeting first gas in the first half
of next year."
-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 does not include inside information.
Glossary
bbls barrels of oil
bbls/d barrels of oil per day
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boe barrels of oil equivalent
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boe/d barrels of oil equivalent per day
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mmboe million barrels of oil equivalent
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[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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