Record production during H1 2025 drives upgrade to production guidance

Jadestone Energy announces a trading update for the half-year ended 30 June 2025. The financial information in this update is unaudited and may be subject to further review and change.

Dr. Adel Chaouch, Executive Chairman of Jadestone, commented:
“I am pleased to report on a strong first half of 2025, where we delivered on the commitments we set out at the end of 2024.

Operational excellence is a strategic priority for Jadestone. First half production growth of over 20% year-on-year was driven primarily by outperformance at Akatara and delivered despite the challenges at the Skua-11ST well.  Financial discipline is our other key focus, with unit operating costs reduced by nearly 30% year-on-year. As a result, we have upgraded our production guidance and reduced our operating cost guidance today.

Our financial position also improved during the period. Incorporating June lifting proceeds received in early July, net debt more than halved over the first half of the year, also benefiting from the sale of our Thailand assets in April 2025, which accelerated value and cashflow for shareholders as we focused our growth on Jadestone’s core operated positions in Australia, Indonesia, Malaysia and Vietnam.

We are building more efficiency and resilience in our existing production base, which strengthens the foundations of our business ahead of further growth in the Asia-Pacific region. Despite this positive performance in the first half of 2025, Jadestone’s share price continues to trade at a deep discount to net asset value. We will continue to focus on creating value for shareholders to ensure that the potential of our assets is fairly reflected in our share price.”

T. Mitch Little, Chief Executive Officer of Jadestone, commented:
“We have upgraded production guidance and reduced operating cost guidance, which are a strong reflection of our ongoing work to optimize the value of our existing assets, and in turn will positively impact our 2025 cash generation. Through the combined benefits from these efforts, we fully expect to mitigate the increase in our 2025 capex guidance, which is revised today due to the previously disclosed one-off increase in the Skua-11ST well cost. We expect that these trends will continue to benefit our shareholders beyond the current year, while also ensuring that we maintain our steadfast commitment to protecting our people, our assets, and the environment.

 At the Skua-11ST well, we have made good progress, with all completion equipment now installed and demobilization  of the drilling rig commencing. The well is in the process of being tied-in to the Montara production facilities, with production expected to commence in early August. We remain confident that the high-quality reservoir section intersected by the well should deliver initial production above the 3,500 bbls/d rate guided prior to drilling.”

 Guidance Update 

• Following the strong first half 2025 production performance, and second half contribution expected from the Skua-11ST well, 2025 production guidance is increased to 19,500-21,500 boe/d (from 18-21,000 boe/d), reflecting an increase of 1,000 boe/d at the midpoint of the range.
• Given the strong focus on cost control in the first half of the year, the 2025 operating cost range is reduced to US$240-280 million (from US$250-300 million), reflecting a reduction of US$15 million at the midpoint of the range.
• As previously disclosed, the cost of the Skua-11ST drilling program will exceed previous forecasts, partly due to factors outside of Jadestone’s control. As a result, 2025 capital expenditure guidance is revised from US$75-95 million to US$105-115 million, reflecting an increase of US$25 million at the midpoint of the range. Learnings from the Skua-11ST drilling campaign will be integrated into the planning of any future wells in the Skua area, as part of Jadestone’s broader focus on driving operational excellence to improve project delivery.
• The Group’s 2025-2027 free cash flow (pre debt servicing) guidance(1) of US$270-360 million is unchanged.

 H1 2025 Operations Update 

• Continued excellent safety and environmental performance across the Group, with Australia, Malaysia and Indonesia operations achieving an aggregate cumulative 11.7 million manhours lost-time injury free.
• H1 2025 average production of 20,368 boe/d (H1 2024: 16,867 boe/d), representing 21% growth year-on-year and a Group record for the first half of the year.
  • Strong performance from Akatara in the first half has underpinned Group production, with gross average Akatara production ahead of plan at 5,771 boe/d, driven by 96% uptime at the processing facilities and optimization of plant throughput.
• H1 2025 operating costs(2) of US$112.8 million (H1 2024: US$125.7 million), a reduction of 10% year-on-year.
  • The reduction in operating costs and production growth year-on-year delivered a H1 2025 unit operating cost of US$32.00/boe, a reduction of 29% year-on-year (H1 2024: US$45.21/boe).
  • This outstanding performance reflects the Group’s ongoing focus on enhancing operating margins and increasing the Group’s resilience across a broad range of commodity prices.

H1 2025 Portfolio Update 

• On 16 April 2025, the Group announced the divestment of its interest in the Sinphuhorm field onshore Thailand for a total consideration of US$39.4 million, with a further US$3.5 million in cash payable contingent on future licence extensions. The asset was originally acquired in February 2023 for US$27.8 million. The combination of the divestment proceeds and the US$12.5 million in dividends from Sinphuhorm during the period of ownership represents a 44% return on acquisition.
• The proceeds from the sale of the interest in the Sinphuhorm field were primarily used to satisfy a scheduled repayment of the Group’s Reserve-Based Lending (“RBL”) facility, improving the Group’s balance sheet.

H1 2025 Financial Update(3) 

• H1 2025 revenues (post-hedging) of US$228.2 million (H1 2024: US$185.1 million), an increase of 23% year-on-year.
• The average realized price for oil liftings in H1 2025 was US$77.45/bbl, a 13% reduction on H1 2024.
  • The year-on-year decrease primarily reflects the fall in the underlying Brent benchmark during the period. The average premium for oil sales during H1 2025 reduced from US$4.59/bbl to US$3.64/bbl, tracking the fall in Brent.
• The average realization for condensate and LPG sales from Akatara during the period was US$49.82/boe, reflecting pricing benchmarks less transportation costs. The average gas price realization during the period was US$5.59/mcf (H1 2024: US$1.64/mcf), reflecting a full period of sales from the Akatara field.
• H1 2025 capital expenditure of US$69.6 million (H1 2024: US$51.1 million), the majority of which relates to the Skua-11ST drilling campaign offshore Australia.
• Net debt at 30 June 2025 was US$107.6 million (31 December 2024: US$104.8 million), comprising US$59.2 million of cash (including restricted cash) and US$166.7 million of debt. The net debt figure at 30 June 2025 excludes US$62.5 million from June 2025 liftings received in early July 2025.(4)
• In April 2025, the Group closed a US$30.0 million working capital facility with a maturity date of 31 December 2026.
• The Group has recently entered into hedges covering 1.8 million barrels of oil production over the 12 months ending 30 September 2026, at an average Brent price of US$69.92/bbl (excluding premiums).

[1] Based on a Brent oil price range of US$70-80/bbl (real terms from 2025). Assumes midpoint of internal production expectations and that all barrels produced during 2025-27 are sold in the period. Does not reflect any capital expenditure or abandonment spend outside the Group’s producing assets. Incorporates upfront consideration from the sale of the Group’s assets in Thailand on 16 April 2025.
[2] H1 2025 operating costs exclude non-cash inventory and lifting adjustments. To allow for comparability with H1 2025, non-cash inventory and lifting adjustments are excluded from the H1 2024 figure disclosed in the table. Both H1 2024 and 2025 operating costs disclosed in the table include certain costs previously classified as general and administrative costs.
[3] Totals may not add due to rounding.
[4] The Group’s net debt and liquidity remains subject to several factors, particularly the timing of receipts from oil and gas sales, capital expenditure and scheduled repayments under the Group’ RBL facility. 

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