Jadestone Energy provides updated operational and financial guidance for 2021 ahead of its H1 2021 operating and financial results on 9 September 2021:

● H1 2021 Group production was slightly ahead of plan at 9,934 bbls/d;
● Average full-year 2021 production guidance of between 11,500–13,500 boe/d remains unchanged
○ Includes 9,000–10,500 bbls/d from the Australia assets, reflecting H1 2021 performance, and the revised contributions from the Montara H6 infill well and the Skua 10 and 11 subsea well workovers, due to the late arrival of the Valaris 107 drilling rig and longer than expected drilling at the Montara H6 well causing a circa one month delay in the work programme;
○ Slight delays to Stag workovers due to COVID restrictions on people and equipment; and
○ Includes daily production from the Peninsular Malaysia assets of a little over 6,000 boe/d, post-closing on 1 August 2021 net to Jadestone and consistent with production levels at the time of the announcement of the acquisition, with some potential upside, equivalent to 2,500–3,000 boe/d annualised production.
● Average 2021 unit production cost guidance is unchanged at US$25.50–29.50/boe, and reflects the updated production guidance outlined above;
● Spending in 2021 of US$105–115 million, compared to US$85–95 million previously, which includes capital expenditure and major non-recurring opex
○ Reflects updated estimates on the anticipated scope of work necessary to restore production from the Skua subsea wells, and the revised cost of the H6 infill well at Montara, where the well has been sidetracked due to mechanical equipment issues.
● While Jadestone and the seller remain committed to the Company’s acquisition of the 69% operated working interest in the Maari asset offshore New Zealand, the Company believes it is prudent to exclude the asset from guidance until there is further clarity on the timing of requisite government approvals. With the economic date of the transaction unchanged at 1 January 2019, all production and resultant free cash flow generated from the asset since that point continues to accrue to the Company up to the completion date, subject to completion; and
● Reiterate commitment to pay a 2021 cash dividend, in keeping with the Company’s dividend policy, and to maintain and grow dividends in line with underlying cashflow generation.

Paul Blakeley, President and CEO commented:
“2021 marks the return to a phase of active investment across our producing assets, following an extraordinarily challenging 2020, and we welcome the relative stability and more favourable investment climate our industry is seeing this year. Further, we remain well positioned to capitalise on the growing number of acquisition opportunities in our core areas, without sacrificing our rigorous sub-surface screening and clear focus on returns.

“With more than half of 2021 behind us, we have updated our guidance to reflect the delayed timing of work programme activities and Maari closing, offset by the recent Peninsular Malaysia transaction. Full year production guidance remains unchanged at 11,500 – 13,500 boe/d.

“We have removed the impact of the Maari transaction for this year, reflecting ongoing uncertainty in the timing of New Zealand government approval.  While the government seems more focused on new legislation to provide clarity around decommissioning security, we have, in the meantime, provided all the information requested by the relevant regulator in seeking their approval. Importantly, removing Maari from guidance is more than offset by the inclusion of the Peninsular Malaysia acquisition from 1 August.

“The quality of the opportunity set across our asset portfolio remains unchanged and the incremental cashflow from rising production will benefit the business in the last quarter this year and throughout 2022, rather than during last year’s depressed price environment.  I look forward to the successful completion of the Montara activity programme and the full benefit of the Peninsular Malaysia assets increasing Jadestone’s production towards 20,000 boe/d.”