Jadestone Energy, an independent oil and gas production company focused on the Asia-Pacific region, provides a trading update for the year ended 31 December 2022. The financial information in this update has not been audited and may be subject to further review.

Paul Blakeley, President and CEO commented:
“As previously reported, 2022 was a year of two halves. Whereas in the first half, the Company delivered record financial results, the second half was impacted by the shut-down of our main producing field, Montara. Despite this temporary setback, Jadestone achieved several notable successes during the year.

We completed the CWLH acquisition offshore Australia, which adds a strategic and value accretive asset to our portfolio, including funding 50% of the decommissioning liability upfront. Additionally, the team on Stag successfully completed two infill wells, one of which was the longest well drilled by Jadestone to date. Initial well delivery is ahead of expectations and provides increased confidence in a number of additional infill well locations for the future. At the operated Peninsular Malaysia assets, we made solid progress in improving operating performance and production is up 10% within just twelve months from acquisition, and ahead of any new drilling activity, with the first wells here planned later in 2023. The Akatara gas development is progressing well, both in line with cost estimates, and on schedule towards first gas in the first half of 2024.

Jadestone finished the year with a cash balance of US$122 million. This is a good outcome given not only the impact of the Montara outage, but also the significant capital expenditure at both Akatara and Stag, as well as the acquisition of the CWLH interest and the ongoing share buy-back programme, all of which were managed within the cash generated during the year.

Finally, we are pleased to report a strong start to 2023, with the recent acquisition of an initial stake in Sinphuhorm field, and progress towards a restart of Montara, which remains on track for later this month.  We are engaged in several M&A processes at present, and I am optimistic that we will be successful in resuming our growth trajectory in 2023, while remaining very disciplined about the opportunities we pursue.”

2022 Operating and Financial performance

• 2022 production averaged 11,487 boe/d (2021: 12,545 boe/d), in line with expectations(1), with the asset split as follows:
  • Montara: 4,227 bbls/d, a 45% decrease on 2021 primarily due to the field being shut in from mid-August to year-end 2022
  • Stag: 2,176 bbls/d;
  • Peninsular Malaysia: 4,702 boe/d
  • CWLH: 383 bbls/d, representing the annualised contribution based on average net production of 2,290 bbls/d since completion of the acquisition on 1 November 2022
• 2022 revenues estimated at US$421 million (2021: US$340 million), an annual record for the Company, as higher realisations offset lower production from Montara.
• 2022 liftings estimated at 4.0 mmbbls (2021: 4.6 mmbbls) of oil and 1.8 mmcf (2021: 0.6 mmcf) of gas. Oil liftings were lower than 2021, primarily due to the shut-in at Montara partially offset by a full-year contribution of the Peninsular Malaysia assets acquired in 2021 and the first lifting from the CWLH asset in November 2022.
• The Company realised an average oil price of US$103.93/bbl (2021: US$74.34/bbl) during 2022, compared to an average lifted Brent price of US$96.05/bbl (2021: US$70.94/bbl). The average premium to Brent in 2022 of US$7.88/bbl (2021: US$3.39/bbl) reflected strong pricing across Jadestone’s portfolio, particularly at Stag, which averaged a US$22.78/bbl premium to Brent across the three liftings during the year.
• Unaudited operating expenses(2) for 2022 are estimated at approximately US$37/boe, primarily impacted by the temporary shut-in production from Montara and therefore at the upper end of the guidance range after the customary adjustment for non-routine maintenance items and workover costs.
• 2022 capital expenditure was approximately US$87 million, just below the guidance range of US$90 – 105 million. The Stag infill drilling programme accounted for US$60 million of total capex, with US$21 million initial spend on the Akatara gas development, lower than anticipated due to phasing of procurement activity. Akatara project progress, and delivery of first gas, remain on track with original planning.
• Cash balances at the end of the year are estimated at US$122 million, a slight increase on the opening 2022 figure of US$118 million.
• To date, the Company has acquired 20.2 million shares under its buyback programme, at a total cost of US$17.9 million, representing an average repurchase price of 76p per share.
• The Company is currently debt free but continues to progress the proposed reserves based lending facility, which was always intended to fund the Akatara field development expenditure and for general corporate purposes.
• The Company’s 2023 operational and financial guidance will be announced once production from Montara has resumed.

1. Operational Update, 17 November 2022
2. Unaudited operating expense is a non-GAAP financial measure which does not have a standardised meaning prescribed by IFRS.