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Jadestone Energy PLC said on Thursday its average oil production at the start of 2023 was impacted by repairs and maintenance activities, but maintains a hopeful outlook for the next nine months of the year.
The London-based oil and gas production company, focused on the Asia-Pacific region, said oil production for the first three months of 2023 averaged at around 10,000 barrels of oil equivalent per day.
This was impacted by tank repairs and other scheduled maintenance activities at its Montara oil fields off the coast of Western Australia, Jadestone said.
Nevertheless, Jadestone’s guidance for the remaining nine months of the year is around 13,500 boe per day to 17,000 boe per day, when routine operations resume at Montara.
The company also said it expects its underlying operating costs in 2023 to be around $180 million to $210 million.
This reflects an increase of approximately 6% as a result of the $20 million acquisition of Cossack, Wanaea, Lambert, and Hermes oil fields back in November, in addition to higher tanker and logistics costs.
Jadestone said capital expenditure guidance for 2023 is expected to be between $110 million and $140 million, with 70% allocated to the Akatara gas development project in Indonesia, which would be the largest investment programme in the company’s history.
Jadestone also reported that it has proved plus probable oil reserves of 64.8 million barrels of oil equivalent at December 31, 2022, up 45% from 2021.
The increase was driven by the acquisition of the 16.7% interest in the CWLH fields, a reclassification of the best estimate of contingent resources from the Akatara gas field development to 2P reserves following a final investment. This was also steered by the purchase of an interest in the Sinphuhorm gas field in Thailand, which added another 4.1 mmboe of 2P reserves after the period end.
Jadestone will publish its full-year results on April 25.
Shares were down 4.4% at 66.00 pence in London on Thursday afternoon.
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