Montara Operations and Corporate Update

12 August 2022-Singapore: Jadestone Energy plc ("Jadestone", or the "Company") an independent oil and gas production company focused on the Asia-Pacific region, provides the following update on Montara operations as well as a general corporate overview ahead of its H1 2022 results, which will be released on 20 September 2022.

Montara Operations Update

Further to the announcement in June 2022 reporting a small leak of oil from a crude oil tank on the Montara Venture FPSO, followed by an interim repair and subsequent restart of production from Montara, the Company has been working to complete a permanent repair to tank 2C.  During preparations for this repair, an additional internal defect in water ballast tank 4S was detected and this will also be included in the workscope of repairs.  There has also been a focus on the remaining scheduled inspection and repair activities to the FPSO crude oil tanks and production facilities which, as previously announced, have been delayed by limitations on available personnel during the COVID-19 pandemic.

Over the past several weeks, the permanent repair to tank 2C has been developed, though delayed due to weather, manpower and logistics issues, further complicated while the facility remains in production operations.  This has resulted in an inability to simultaneously accommodate the increased number of inspection and repair crews alongside production operations.  

As a result, the Company has taken the decision to temporarily shut-in production from Montara and reorganise offshore manpower on the FPSO enabling priority and focus on maintenance and inspection crews.  This is the most practical and efficient way to complete tank repairs whilst progressing ongoing inspection and remediation to other tanks in the FPSO and to complete key remaining scheduled inspection and repair activities planned for this year.

It is currently anticipated that these inspection and repair activities will result in production being shut-in during the remainder of August and potentially through September 2022.  It is currently anticipated that prioritising the activity referenced above will result in incremental costs of US$2-4 million.

Production Guidance and Share Buyback Programme

As a result of the Montara shut-in referred to above, and the performance of the wider production portfolio year-to-date, the Company now expects that 2022 production will average between 13,000 and 14,000 boe/d. This compares to the announcement on 20 June 2022, which signalled that 2022 production would likely be around 15,500 boe/d, being the lower end of the previous guidance range.  The revised 2022 production guidance reflects the Company's assumption that production from its non-operated assets offshore Peninsular Malaysia will now remain shut in for the remainder of 2022, due to ongoing delays in reinstating operations.

The Company is confident that by taking this approach at Montara, the necessary work required to deliver long-term asset integrity can be safely and efficiently completed.  The impact is short-term and there is no reduction in reserves.  As a result, and given its strong balance sheet, the Company intends to continue the share buy-back programme announced on 2 August 2022.

H1 2022 trading Update

The Company provides the following operational and financial metrics ahead of its first-half 2022 results, which are scheduled for release on 20 September 2022.  This information has not been audited and may be subject to further review.

·    H1 2022 production of 15,008 boe/d, with a preliminary breakdown as follows

¡ Australia: 9,565 bbls/d

¡ Peninsular Malaysia: 5,443 boe/d

·    Liftings: 2.0 mmbbl of oil and 0.9 bcf of gas

·    Realised prices:

¡ Oil: US$109.52/bbl

¡ Gas: US$2.17/mscf

·    Total H1 2022 revenues: US$225.6 million

·    End H1 2022 cash balance: US$161.1 million

Paul Blakeley, President and CEO commented:

"Safety to personnel and facility integrity are key foundational principles at the heart of our operating philosophy, and after experiencing ongoing delays to the permanent repair on tank 2C, and to the wider inspection and repair programme on the Montara Venture FPSO, we believe we had to approach this work scope in a different way.

A temporary shut-in of Montara production, in order to replace production crews with maintenance and inspection teams, is the most practical solution which will allow us to apply the necessary additional manpower to accelerate key maintenance and repair activities and restore facility integrity.  There can be no short cuts, and while we have made very significant progress in restoring the FPSO to the standard which we expect, the limited FPSO accommodation, as well as other factors such as COVID-19, have been impeding our progress.  Our decision will reverse this trend.   This represents production deferred, rather than barrels lost, and we are working hard to restore Montara production as soon as possible."

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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, low risk, full cycle portfolio of development, production and exploration assets in Australia, Malaysia, Indonesia and Vietnam.

The Company has a 100% operated working interest in the Stag oilfield and in the Montara project, both offshore Australia. Both the Stag and Montara assets include oil producing fields, with further development and exploration potential.  The Company also has interests in four oil producing licences offshore Peninsular Malaysia; two operated and two non-operated positions.  Further, the Company has a 100% operated working interest in two gas development blocks in Southwest Vietnam, and an operated 100% interest (assuming completion of the Hexindo stake acquisition, as announced in November 2021) in the Lemang PSC, onshore Sumatra, Indonesia, which includes the Akatara gas field development.

In addition, the Company has executed a sale and purchase agreement ("SPA") to acquire a 16.67% working interest in the North West Shelf Oil Project, offshore Western Australia, which is expected to complete in the fourth quarter of 2022. The Company has also signed an SPA to acquire a 69% operated working interest in the Maari Project, shallow water offshore New Zealand, and is working with the seller to obtain final New Zealand government approvals. 

Led by an experienced management team with a track record of delivery, who were core to the successful growth of Talisman's business in Asia, the Company is pursuing an acquisition strategy focused on growth and creating value through identifying, acquiring, developing and operating assets in the Asia-Pacific region.

Jadestone Energy plc is listed on the AIM market of the London Stock Exchange.  The Company is headquartered in Singapore.  For further information on the Company please visit www.jadestone-energy.com.

Cautionary Statements

This announcement may contain certain forward-looking statements with respect to the Company's expectations and plans, strategy, management's objectives, future performance, production, reserves, costs, revenues and other trend information.  These statements are made by the Company in good faith based on the information available at the time of this announcement, but such statements should be treated with caution due to inherent risks and uncertainties.  These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future.  There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts.  The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment.  Nothing in this announcement should be construed as a profit forecast.  Past share performance cannot be relied upon as a guide to future performance.  The Company does not assume any obligation to publicly update the information, except as may be required pursuant to applicable laws.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.

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