Jadestone Energy, an independent upstream production company focused on the Asia-Pacific region, today provides the following operational update.

Group Production and Guidance

Recent production performance demonstrates the positive effect of the Group’s ongoing investment activity and recent acquisitions, delivering a more balanced and diversified portfolio. Six assets are now in production prior to the addition of the Akatara project in Indonesia, which remains firmly on schedule for first gas during H1 2024.

Since 1 April 2023, Group production has averaged c.14,400 boe/d and has averaged c.13,100 boe/d year-to-date.  Based on current expectations for the remainder of 2023, production is now expected to be towards the upper end of the April to December guidance range of 13,500 – 15,000 boe/d (equivalent to an annual 2023 guidance range of 12,600 – 13,700 boe/d), with the following highlights:

• PM323 production in Malaysia has doubled, and is currently c.5,300 bbls/d net to Jadestone, largely from the planned infill drilling campaign on the East Belumut field which has delivered results significantly ahead of expectations (see below for further detail);
• Montara has averaged c.5,700 bbls/d in recent months, with good well performance offset by occasional brief interruptions associated with offtake arrangements, including the replacement of a short section of offload hose at the shuttle tanker;
• Production from the CWLH fields continues to exceed the Company’s expectations, averaging c.2,300 bbls/d net in recent months due to strong reservoir performance and high uptime at the Okha FPSO; and
• PM329 production in Malaysia, Sinphuhorm in Thailand and Stag in Australia are all broadly on plan showing the benefits of diversified production.

2023 guidance for capex (US$110-125 million) and operating costs are reiterated.

Akatara

The Akatara development project is currently 83% complete and remains on schedule for commissioning activities in the first quarter of 2024 and first gas before mid-2024.  Approximately 1,450 workers are currently on site, with c.2.9 million safe manhours worked to date on the Akatara project.

The Elang-1 rig is scheduled to mobilise to the Akatara development at the end of November 2023 to workover five existing wells which will provide the raw gas feed into the Akatara Gas Processing Facility.

Malaysia

• The first well in the East Belumut infill drilling campaign on the PM323 PSC was, as previously reported, successfully drilled and brought onstream in September 2023 and is currently producing c.1,400 bbls/d.
• The third well was successfully drilled and completed in late October 2023, testing at a gross rate of c.3,100 bbls/d and was subsequently brought onstream.
• The fourth well in the programme has also been successfully drilled and has been tested at a gross rate of c.1,700 bbls/d in recent days.
• As a result, the three wells drilled to date in the 2023 drilling programme are currently producing at a gross rate of c.6,200 bbls/d, significantly exceeding the pre-drill gross rate expectation for all four wells of 3,500 bbls/d. Consequently, gross PM323 production has reached c.8,800 bbls/d in recent days, or c.5,300 bbls/d net to Jadestone.
• The Naga-2 rig will now complete the drilling of the second well in the programme, which was temporarily suspended due to fluid losses. The well is expected to reach total depth in the second half of November.
• The capex for the 2023 East Belumut drilling campaign is now estimated at US$28 million net to Jadestone, or approximately US$7 million (net) more than pre-drill expectations, primarily due to the extension required to complete the drilling of the second infill well. This increase is reflected in the reiterated 2023 capex guidance above. The overall cost of the drilling campaign is expected to be fully cost recovered by Q2 2024 due to the higher rates of production seen from the wells drilled to date.

Liftings

The Company expects to lift approximately 1.6 million barrels across November and December 2023, including a c.650,000 barrel lifting from the CWLH fields and c.450,000 barrels from Montara.

Paul Blakeley, President and CEO commented:
“Production has strengthened recently, with the stabilisation of Montara, strong growth from the successful Malaysia infill drilling campaign and solid performance from all other producing assets.  The planned diversification of the portfolio is working, providing greater resilience to our business, and the addition of Akatara production next year will further enhance this.

Progress at Akatara remains on schedule and, at 83% complete, first gas has been substantially de-risked, with pre-commissioning of certain key systems expected to commence shortly.  The drilling programme at East Belumut has been very successful, supporting near-term growth, and the results provide encouragement for further drilling within the field with another four well campaign already being considered.”

KeyFacts Energy: Jadestone Energy Indonesia country profile