Highlights
2023 group production, underlying operating cost[1] and capital expenditure guidance reaffirmed.
The Akatara gas development project in
The Company intends to strengthen the executive management team by creating the role of Chief Operating Officer.
To refresh the Board of Directors (the 'Board'), certain non-executive directors intend to stand down as soon as replacements have been found and following an appropriate handover period.
Operational Update
Group production has averaged c.12,300 boe/d year-to-date in 2023 and c.14,800 boe/d since
The Akatara gas development project onshore
Reserves-Based Loan ('RBL') The RBL, arranged with four leading international banks, provides important liquidity during Jadestone's next growth phase, establishing an important benchmark for the quality of the Company's investments as Jadestone continues to grow and diversify its production base. Once onstream, the Akatara development is projected to add significantly to Jadestone's production and cash flow, supporting the forecast rapid de-leveraging of the Company's balance sheet.
As a condition of the RBL, the Company is required to hedge 50%, or c.5.5 mmbbls, of its forecast production over the Q4 2023 to Q3 2025 period. Currently, c.4.2 mmbbls has been hedged at a weighted average Brent price of
Board and Management Changes
The Board believes that certain changes are necessary to refresh Board composition and adhere to best practice by adding new experience to bolster the overall governance framework of the Company. Two of the board's longest standing directors,
Furthermore, the Board and management team of Jadestone has concluded that, given the significant growth and diversification of the Company's operations in recent years, it is appropriate to strengthen the senior management team and enhance internal succession planning options by creating the role of Chief Operating Officer (COO). A search for the COO will commence imminently.
The Board is also undertaking a review of the Company's remuneration practices and intends to work with its advisers and stakeholders on an appropriate incentive scheme, which better incentivises key personnel in the business and aligns with shareholder interests.
Finally, the Board is committed to ensuring that all stakeholders are kept informed of business developments through clear and timely communication.
AGM Update - Withdrawal of AGM Resolution 16
Jadestone's Board announces that it has decided to withdraw Resolution 16 from the agenda of the AGM to be held today (at the time and location detailed at the beginning of this announcement).
Resolution 16 proposed that the Company be authorised generally and unconditionally to make market purchases, in line with
Since the publication of the Notice of AGM on
The withdrawal of Resolution 16 does not affect the validity of the Notice of AGM, the proxy form or any proxy votes already submitted in respect of the remaining resolutions to be proposed at the AGM. The numbering of all other proposed resolutions at the AGM remains unchanged.
Arrangements for the AGM are unchanged from those previously notified.
As part of this plan, and in recognition of the demands of the rapid growth in operating and development assets over the recent past, we will bolster the senior management team with the creation of a Group COO role. In addition, and in keeping with best practice to periodically refresh the talent on the Board, in coming months we intend to replace two independent directors. I wish to take this opportunity to thank both
Finally, I thank all of our shareholders for their constructive feedback in recent weeks, upon which the Board has reflected carefully.'
For further information, please contact:
About Jadestone Energy
The Company has a 100% operated working interest in the Stag oilfield and in the Montara project, both offshore
The Company is the operator of four licences offshore Peninsular Malaysia; two of which are currently producing - the PM323 PSC which produces oil and the PM329 PSC which produces oil and gas. The Company has a non-operated 9.52% interest in the Sinphuhorm producing gas field onshore
Further, the Company has a 100% operated working interest in two gas development blocks in
Led by an experienced management team with a track record of delivery, who were core to the successful growth of Talisman's business in
This announcement does not contain inside information.
Underlying operating cost guidance excludes non-recurring items and certain costs such as workovers, transportation and expenditure associated with non-producing assets offshore
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