Strong Results from Malaysia Drilling Campaign and Corporate Update
4 December 2023 – Singapore: Jadestone Energy plc (“Jadestone”, the “Company” or the “Group”) an independent upstream production company focused on the Asia-Pacific region, announces that the final well in the Company’s 2023 East Belumut field drilling campaign offshore Peninsular Malaysia has now been completed. The overall programme has delivered results significantly ahead of expectations. The Company is also pleased to provide an update on Group production, progress on the Akatara project and recent crude oil liftings.
East Belumut Infill Drilling Campaign (Jadestone 60% working interest and operator)
The fourth and final well in the East Belumut infill drilling campaign is currently being tested after reaching c.4,600 metres measured depth in the south west of the field. This is approximately 730 metres measured depth more than originally planned, due to the better than expected oil column encountered at the toe of the well, and the longest reach horizontal well ever drilled in the field. Overall, a 1,700 metre horizontal section was drilled in the target formation, aided by successful optimisation of the well trajectory using geo-steering tools. The well is expected to produce at initial rates in excess of 3,500 bbls/d.
Combined with the three wells drilled to date, which are currently producing at an aggregate gross rate of c.7,000 bbls/d, the results of the East Belumut infill campaign have far exceeded expectations, which were for initial gross aggregate rates from all four wells of 3,500 bbls/d. The drilling capex will be cost recovered and pay-back is expected by Q2 2024 next year. The well results are already being used to update the geological model for the East Belumut field, will have a positive impact on reserves, and are likely to provide a number of new infill targets for future drilling campaigns.
Group Production Update
Since the Company’s most recent announcement on 13 November 2023, overall group production performance has continued to be robust, averaging c.20,000 boe/d during this period. The main factors driving this positive outcome are:
- Recent average production of c.7,000 boe/d net (11,200 boe/d gross) from the Peninsular Malaysia assets, in large part due to the success of the infill drilling campaign on the East Belumut field detailed above; and
- Average production of c.7,500 bbbls/d from Montara, based on strong well performance and FPSO uptime.
Overall, since 1 April 2023, Group production has averaged c.14,900 boe/d, equivalent to an average of c.13,500 boe/d year-to-date. As previously reported, production is now expected to be towards the upper end of the April to December 2023 guidance range of 13,500 – 15,000 boe/d (equivalent to an annual 2023 guidance range of 12,600 – 13,700 boe/d). This incorporates a planned shutdown for one week at Montara in early December for compressor maintenance.
2023 guidance for capex (US$110-125 million) and operating costs are also reiterated.
The Akatara development project is currently 87% complete and pre-commissioning activities have commenced, with the project remaining on schedule for first gas before mid-2024. Approximately 1,600 workers are currently on site, with c.3.2 million safe manhours worked to date on the Akatara project.
The mobilisation of the Elang-1 rig to the Akatara project is now expected in the third week of December 2023 (previously end of November) to workover five existing wells which will provide the raw gas feed into the Akatara Gas Processing Facility. This change in timing will not impact the first gas date.
Since the beginning of Q4 2023, the Company has lifted approximately 1.4 mmboe generating significant revenues. A further 370,000 boe are expected to be lifted in December, with proceeds expected to be received before year-end.
Paul Blakeley, President and CEO commented:
“The East Belumut drilling programme has proved to be very successful, significantly exceeding our pre-drill expectations and testament to the hard work and enthusiasm of the many people across the business involved in this campaign. This is our core strategy at work, having acquired the interests in 2021 and now starting to add value through our differentiated view of the subsurface potential. These results will significantly expand the scope for further infill drilling on East Belumut and I expect will generate a number of well campaigns for the future.
Production performance across the portfolio has been solid recently, underpinned by strong performance in Malaysia and stabilisation of production at Montara. We will continue to work hard to make this “business as usual” in the future. At Akatara, the project continues to make good progress and remains on schedule, still comfortably targeting first gas in the first half of next year.”
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About Jadestone Energy
Jadestone Energy plc is an independent oil and gas company focused on the Asia-Pacific region. It has a balanced and increasingly diversified portfolio of production and development assets in Australia, Malaysia, Indonesia, Thailand and Vietnam, all stable jurisdictions with a positive upstream investment climate.
Led by an experienced management team with a track record of delivery, who were core to the successful growth of Talisman Energy’s business in Asia-Pacific, the Company is pursuing a strategy to grow and diversify the Company’s production base both organically, through developments such at Akatara in Indonesia and Nam Du/U Minh in Vietnam, as well as through acquisitions that fit within Jadestone’s financial framework and play to the Company’s strengths in managing maturing oil assets. Jadestone delivers value in its acquisition strategy by enhancing returns through operating efficiencies, cost reductions and increased production through further investment.
Jadestone is a responsible operator and well positioned for the energy transition through its increasing gas production, by maximising recovery from existing brownfield developments and through its Net Zero pledge on Scope 1 & 2 GHG emissions from operated assets by 2040. This strategy is aligned with the IEA Net Zero by 2050 scenario, which stresses the necessity of continued investment in existing upstream assets to avoid an energy crisis and meet demand for oil and gas through the energy transition.
Jadestone Energy plc (LEI: 21380076GWJ8XDYKVQ37) is listed on the AIM market of the London Stock Exchange (AIM: JSE). The Company is headquartered in Singapore. For further information on the Company please visit www.jadestone-energy.com.
This announcement does not include inside information.
 Underlying operating cost guidance is US$180-210 million. Underlying operating cost guidance excludes non-recurring items and certain costs such as workovers, transportation, and expenditure associated with non-producing assets offshore Malaysia. These excluded items are included in the reported production costs in the Group’s statement of profit or loss, and are expected to total US$65-75 million in 2023.