Jadestone Energy today provides 2023 operational and financial guidance and year-end 2022 reserves.

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.

[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.

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.

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