Jadestone Energy announces its 2026 guidance and end-2025 reserves update.

T. Mitch Little, Chief Executive Officer of Jadestone, commented:
“Through successful organic and acquisition led growth, Jadestone has increased its production 73% over the 2022-25 period, representing compound annual growth of 20%. It remains our priority to extend this growth trajectory and progress our strategic objective of being the leading independent Asia-Pacific upstream company. The next major catalyst in our growth story is the upcoming FDP approval for our Vietnam gas development. This will be a meaningful milestone, allowing us to book the project’s reserves and expedite discussions with potential partners, as we continue to build momentum behind this material organic growth opportunity creating value for all stakeholders.    

2026 will be a year of continued focus on unlocking the value from our existing portfolio, while exercising discipline and prudence in the face of volatile oil prices. Our development activity will be focused on high return, quick payback infill drilling within the PM323 license offshore Malaysia. The firm program is targeting the development of approximately 2 MMbbls of oil, net to Jadestone, with payback within a year. Depending on the results of the first two wells, a contingent third well could also be added to this year’s program. Our commitment to this additional development activity strengthens our case for a PM323 license extension, where advanced discussions have been encouraging. This disciplined investment approach will reduce Group capital expenditure in 2026 below previous expectations and will be significantly lower than 2025 spend.

Following strong growth in recent years with the development of the Akatara field, Group production is expected to be broadly flat year-on-year as the positive impact of the PM323 campaign offsets natural decline, the 2025 disposal of Sinphuhorm and an increase in planned maintenance activities primarily associated with the CWLH FPSO drydock. During 2025, significant progress was made in reducing routine opex. We will continue to be relentless in managing opex, however, we will see an increase in 2026 due to triennial subsea maintenance work, contract renewals, the FPSO drydock at CWLH which occurs every five years, and activity deferrals from 2025.

We remain committed to both operational and financial discipline as we seek to create value for our shareholders. I’m pleased to report that we are making good progress towards refinancing our reserves-based lending facility, which will allow us to prioritize Jadestone’s cash flow generation for growth. We are also actively reviewing options to crystallize the value in our existing asset base, as well as potential inorganic growth opportunities.“

2026 Guidance[1]

• 2026 production guidance is set at 18,000-21,000 boe/d. Natural portfolio decline is expected to be offset by the positive impact of the PM323 infill drilling campaign, offshore Malaysia, which is due to commence near the end of Q1 2026 with first oil expected around mid-year. The Skua-10ST infill well at Montara (previously planned for 2026) has been deferred due to oil price volatility and to allow for the integration of further technical and planning studies following the results of the Skua-11ST well drilled in 2025. 2026 production guidance also reflects ~55 days planned downtime at CWLH for the maintenance related dry-docking of the Okha FPSO.
• 2026 total production costs[2] of US$260-300 million, which includes additional costs relating to triennial subsea maintenance programs, costs associated with the five-yearly dry-docking of the CWLH FPSO, logistics contract renewals in Australia and costs deferred from 2025. With the confluence of these combined activities, the Group expects 2026 to mark a near-term peak in total production costs.
• 2026 capital expenditure of US$50-80 million. Approximately two-thirds of 2026 capex will be directed towards development activities primarily in Malaysia (with the upper end of the range reflecting a contingent PM323 well) and Vietnam, with a further ~15% at CWLH, while the remainder is largely dedicated to ensuring and protecting reliability across the business.
• In light of the 2026 guidance set out today, as well as the Group’s preliminary expectations for 2027, the Group’s unlevered free cash flow guidance[3] for the 2025-2027 period is revised to US$200-240 million at US$70/bbl Brent.
  • In February 2025, the Group announced unlevered free cash flow guidance3 for the 2025-2027 period of US$270 million, based on a Brent oil price of US$70/bbl.
  • The revised unlevered free cash flow guidance at end-2025 is predominantly due to the Skua-11ST cost increase, along with other minor economic and technical factors.
  • Every US$10/bbl move in the underlying Brent assumption changes the 2025-2027 free cash flow guidance by ±US$90 million, which is in line with the original sensitivity given in February 2025.
• As previously disclosed, the Group expects to record a non-cash impairment in its year-end 2025 accounts. The non-cash impairment is estimated at approximately US$90 million (subject to completion of the 2025 full-year audit process). The impact of lower oil price forecasts utilized by Jadestone’s external reserves auditor is a significant contributor to the non-cash impairment.

End-2025 Reserves Update

• End-2025 2P reserves[4] totalled 56.2 MMboe, a decrease of 8.3 MMboe on end-2024, primarily due to 7.0 MMboe of production in 2025 and the remainder due to technical and economic revisions across the Group.
• The economic lives of the Group’s assets are broadly unchanged from the dates disclosed in the 2024 Annual Report. In line with previous disclosures, the Group does not expect significant decommissioning activity at the Montara field before 2031 at the earliest.
• The 2P NPV104 of the Group’s 2P reserves at end-2025 was US$519 million, compared to US$799 million at end-2024. The year-on-year change is primarily explained by revised oil price assumptions[5] (~US$170 million) utilized by the Group’s independent reserves auditor at year-end 2025. Lesser impacts were the reserves reduction associated with 2025 production and the disposal of Sinphuhorm, with the remainder being attributable to asset-specific technical factors.
  • Net of the Group’s year-end 2025 net debt position of US$89 million, the 2P NPV10 equates to a value[6] significantly in excess of the Company’s current share price.
  • Utilizing the independent reserves auditor’s oil price forecast at end-2024, the Group’s 2P end-2025 NPV10 would equate to US$692 million. The reduction compared to the end-2024 NPV10 is due to 2025 production, minor reserve revisions and the sale of Sinphuhorm, demonstrating the quality of the Group’s asset base together with its sensitivity to oil prices.
• The Group has commissioned an updated Competent Person’s Report (“CPR”) on the Nam Du/U Minh discoveries offshore Vietnam from Sproule ERCE, which will also include an assessment of the prospective resource within Jadestone’s existing PSCs. The results of the CPR will be announced in due course, along with an update on the Group’s wider contingent resource base.

[1] 2026 guidance reflects the increase in the Group’s interest in the PM329 PSC offshore Malaysia from 70% to 100%, following the withdrawal of the Group’s partner effective 1.1.2026.
[2] Total production costs are stated prior to audit adjustments including non-cash inventory and lifting movements.
[3] Does not reflect any capital expenditure or abandonment spend outside the Group’s producing assets.
[4] Reserves and calculations exclude the Sinphuhorm interest, which was sold in April 2025. The end-2025 reserves assessment by Sproule ERCE and associated 2P NPV10 is based on the following Brent oil prices – 2026: US$62/bbl, 2027: US$67/bbl, 2028: US$72/bbl escalated at 2% per annum thereafter. The reserves assessment assumes a 90% working interest in the Akatara field.
[5] The end-2024 reserves assessment by ERCE and associated 2P NPV10 was based on the following Brent prices – 2025: US$76/bbl, 2026: US$74/bbl, 2027: US$75/bbl flat escalated at 2% per annum thereafter.
[6] Calculated as US$519 million less the Group’s 2025 year-end net debt position of US$89 million, divided by the current GBP:USD rate and the number of shares in issue (542,162,715). This figure includes forecast decommissioning spend on producing assets, but is not adjusted for other costs and obligations of the Group, including general and administrative costs and forecast decommissioning spend on non-producing assets. 

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