2023 Guidance, 2022 Reserves & Notice of Results

RNS Number : 0972W

Jadestone Energy PLC

13 April 2023

 

2023 Guidance, Year-End 2022 Reserves and Notice of Results

13 April 2023 - Singapore: Jadestone Energy plc ("Jadestone" or the "Company"), an independent oil and gas production company focused on the Asia-Pacific region, is pleased to announce 2023 operational and financial guidance, year-end 2022 reserves and notification of its full-year 2022 results.

Paul Blakeley, President and CEO commented:

"In the first quarter of 2023, production has been impacted by the tank repair and planned maintenance activities at Montara, resulting in an average of just over 10,000 boe/d in the quarter.  Our guidance for the remaining nine months of the year is 13,500 - 17,000 boe/d, reflecting a return to routine operations at Montara and the inclusion of Sinphuhorm.  The midpoint of guidance represents 33% growth over 2022 and 22% over 2021, the latter being the most recent year of full Montara production.

The Malaysia infill well campaign in the second half of 2023, and the addition of Akatara production commencing during the first half of next year, should add a further 5,000 boe/d which, when compared to the 2023 mid-point, represents another 33% increase. We also anticipate adding to this growth profile through our very active pipeline of M&A opportunities.

Jadestone achieved a 45% year-on-year increase in 2P Reserves in 2022, delivering a near six-fold replacement of production during the year, demonstrating the success of our acquisition-led growth strategy and the quality of our asset base, particularly at the Akatara development, which underpins near-term production growth. "

2023 Operational and Financial Guidance

· Production for the first three months of 2023 averaged just over 10,000 boe/d, reflecting tank repair and scheduled maintenance activities at Montara. Production for the nine months ending 31 December 2023 is expected to average 13,500-17,000 boe/d.  The Company expects a c.85/15% split between oil/liquids and natural gas for 2023. 

· Underlying operating costs[1] in 2023 are expected to total US$180-210 million.  When adjusted for a full-year of operating costs associated with the CWLH acquisition, higher tanker costs at Stag and higher logistics costs at Montara in 2023, underlying operating costs are expected to be c.6% higher year-on-year, demonstrating cost control in an inflationary environment.

· Capital expenditure guidance for 2023 is expected to total US$110-140 million, the largest investment programme in the Company's history. This is allocated primarily to the Akatara gas development project (c.70%), which is progressing well and remains on budget and schedule for first gas in H1 2024. A further 15% will be spent on the PM323 infill drilling campaign offshore Malaysia. 

Year-end 2022 2P Reserves

	Australia	Malaysia	Indonesia	Total Group
Opening balance, 1 January 2022	33.5	11.2	-	44.7
Acquisitions	5.1	-	-	5.1
Reclassification from 2C resources	-	-	16.8	16.8
Technical revisions	(0.5)	(0.6)	3.5	2.4
Production	(2.5)	(1.7)	-	(4.2)
Ending balance, 31 December 2022	35.6	8.9	20.3	64.8

As at 31 December 2022, the Group had proved plus probable oil reserves ("2P Reserves") of 64.8 mmboe, a 45% increase compared with year-end-2021 and a near six-fold replacement of production in the year.  The primary drivers of the significant increase in reserves were the reclassification of 2C Contingent Resources from the Akatara gas field development in Indonesia to 2P Reserves following a final investment decision in June 2022, as well as the acquisition of the 16.67% interest in the producing CWLH fields offshore Australia, which completed in November 2022.  Jadestone completed the acquisition of an interest in the Sinphuhorm gas field onshore Thailand, adding a further 4.1 mmboe of 2P Reserves, after the period end and therefore not included in 2022.  

The Group's best case contingent resources ("2C Contingent Resources") totalled 104.3 mmboe at year-end 2022. 

ERCE Limited independently evaluated the Group's 2022 year-end 2P Reserves.

Notice of full-year 2022 results

Jadestone will issue its consolidated financial statements for the period ending 31 December 2022 on Tuesday, 25 April 2023.  The results will be available on the Company's web site at www.jadestone-energy.com/investor-relations/ .

The Company will host an investor and analyst conference call at 9:00 a.m. (London), 4:00 p.m. (Singapore) on Tuesday, 25 April 2023, including a question and answer session.

A live webcast of the presentation will be available at the link below.  Dial-in details are also provided below.  Please register approximately 15 minutes prior to the start of the call. 

Webcast link: https://app.webinar.net/ZOKNWg2PypR

Event title: Jadestone Energy Full-Year 2022 Results

Time: 9:00 a.m. (UK time) / 4:00 p.m. (Singapore time)

Date: 25 April 2023

Conference ID: 61840872

To join the conference call by phone, please use the following link to register and be connected into the conference call automatically:

https://emportal.ink/3Z9UDjQ

You can also join the call via an operator through the numbers below.

Country	Dial-In Numbers
United Kingdom	08006522435
Australia	1800076068
Malaysia	1800817426
Indonesia	0078030208221
Singapore	18001013217
North America	888-390-0546

-ends-

For further information, please contact:

Jadestone Energy plc
Paul Blakeley, President and CEO	[phone] (Singapore)
Bert-Jaap Dijkstra, CFO Phil Corbett, Investor Relations Manager	[phone] (UK)
	[e-mail]
Stifel Nicolaus Europe Limited (Nomad, Joint Broker)	[phone] (UK)
Callum Stewart
Jason Grossman
Ashton Clanfield
Jefferies International Limited (Joint Broker)	[phone] (UK)
Tony White
Will Soutar
Camarco (Public Relations Advisor)	[phone] (UK)
Billy Clegg	[e-mail]
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, low risk, full cycle portfolio of development, production and exploration assets in Australia, Malaysia, Indonesia, Thailand and Vietnam.

The Company has a 100% operated working interest in the Stag oilfield and in the Montara project, both offshore Australia. Both the Stag and Montara assets include oil producing fields, with further development and exploration potential. The Company also has a 16.67% non-operated interest in the North West Shelf Oil Project offshore Western Australia, comprising four oil fields containing significant upside potential through potential infill drilling and life extension activities.

The Company has interests in four oil producing licences offshore Peninsular Malaysia; two operated and two non-operated positions, and a non-operated 9.52% interest in the Sinphuhorm producing gas field onshore Thailand.

Further, the Company has a 100% operated working interest in two gas development blocks in Southwest Vietnam, and an operated 100% interest in the Lemang PSC, onshore Sumatra, Indonesia, which includes the Akatara gas field development, where first production is expected in the first half of 2024.

Led by an experienced management team with a track record of delivery, who were core to the successful growth of Talisman's business in Asia, the Company is pursuing an acquisition strategy focused on growth and creating value through identifying, acquiring, developing and operating assets in the Asia-Pacific region.

Jadestone Energy plc (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 .

Cautionary Statements

This announcement may contain certain forward-looking statements with respect to the Company's expectations and plans, strategy, management's objectives, future performance, production, reserves, costs, revenues and other trend information.  These statements are made by the Company in good faith based on the information available at the time of this announcement, but such statements should be treated with caution due to inherent risks and uncertainties.  These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future.  There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts.  The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment.  Nothing in this announcement should be construed as a profit forecast.  Past share performance cannot be relied upon as a guide to future performance.  The Company does not assume any obligation to publicly update the information, except as may be required pursuant to applicable laws.

The 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.

Glossary

2C Contingent Resources	Denotes the best estimate scenario of resources that are potentially recoverable from known accumulations, but which are not currently considered to be commercially viable
2P Reserves	the sum of proved and probable reserves.  Denotes the best estimate scenario of reserves
bbls/d	barrels of oil per day
boe	barrel of oil equivalent
boe/d	barrels of oil equivalent per day
FPSO	Floating production storage and offloading
mmboe	million barrels of oil equivalent
PSC	production sharing contract
scf	standard cubic feet

---

[1] Underlying operating cost is defined as total production costs excluding several one-off or non-recurring items to ensure better comparability from period to period.

 

END

 

 

MSCGPUGCCUPWUAW