Jadestone Energy plc (AIM:JSE) (the “Company” and together with its subsidiaries, “Jadestone”), an independent upstream production company focused on the Asia-Pacific region, announces a corporate update and changes to the Company’s Board of Directors (the “Board”), which are effective immediately.
- The Akatara project has achieved sustained gas sales at contractual rates of c.20 MMscf/d (the “Daily Contract Quantity”, or DCQ), with overall Akatara production benefitting from associated condensate and LPG streams.
- Group production has recently achieved record levels in excess of 25,000 boe/d when gas sales from Akatara are at DCQ.
- Paul Blakeley has elected to step down as Executive Director, President and Chief Executive Officer of the Company.
- Dr Adel Chaouch, currently Non-Executive Chairman of the Company, has been appointed Executive Chairman.
- Joanne Williams, currently an Independent Non-Executive Director of the Company, has been appointed Chief Operating Officer.
- Linda Beal, currently an Independent Non-Executive Director of the Company, has been appointed as Senior Independent Non-Executive Director.
Biographical details for Adel Chaouch, Joanne Williams and Linda Beal are available in an appendix to this announcement.
Adel Chaouch, Executive Chairman of Jadestone, commented:
“On behalf of the Board and Jadestone’s employees, I would like to thank Paul for his dedicated service and leadership since 2016 as he steps down from the role of Chief Executive Officer. He was instrumental in taking a business that had no production to one that is now producing from seven assets across four different countries, establishing a strong and diversified upstream platform. The latest achievement is the Akatara project, where we are now seeing gas sales sustained at contractual rates, driving overall Group production to record levels above 25,000 boe/d. In order to capitalise on these achievements, and as Jadestone enters the next phase in its development, it is an appropriate time for a new management structure to position Jadestone for future success. We wish Paul the best in his future endeavours.
A priority for the new management team will be ensuring operational excellence across the portfolio. At Akatara, we will focus on delivering high uptime to consistently meet the gas buyer’s nominations and benefit from the valuable associated condensate and LPG streams. Montara continues to perform well, with high uptime levels and increasing FPSO tank capacity. As we look to build on this positive momentum, I thank Joanne Williams for taking on greater responsibility in this area as Chief Operating Officer.
As we have previously communicated, in the near-term we will build balance sheet strength following a period of significant investment, and continue to focus on financial discipline. We will do this through the increase in cash flows from Akatara, coupled with reductions in operating costs and overheads. A stronger balance sheet will facilitate the next phase of growth for Jadestone, and allow for a resumption of shareholder returns, which remains a priority for the Board. Capital will be allocated efficiently by investing in projects and acquisitions that deliver the greatest value; we will continue to play to our core strengths of establishing material operated positions in existing upstream assets and creating value through efficient operations and selective reinvestment.
We will look to communicate our progress clearly, setting targets and delivering on them. This is essential to delivering a share price which reflects the fundamental value of Jadestone and its assets. With a refreshed management team and the unwavering support of our largest shareholder, we will, over time, build on the existing platform and establish Jadestone as the industry leading regional independent in Asia-Pacific.”
Corporate Update
The Group’s producing assets continue to perform in line with expectations, benefitting from the growth and diversification initiatives of recent years. 2024 will be a record year for Group production, with guidance unchanged from the operational update released on 11 November 2024, supported by recent Group production rates in excess of 25,000 boe/d when Akatara has been delivering gas sales at DCQ.
At Montara, there has been continued good performance due to the significant focus on facility uptime and initiatives to optimise production rates. The oil storage capacity of the Montara Venture FPSO is currently c.375kbbls and is expected to increase further in early 2025 as a result of rolling tank maintenance activity. Planning for the Skua-11 re-drill, which is likely to be the principal activity in the Group’s investment programme in 2025, is progressing well, with drilling expected to commence in the first quarter of 2025, subject to arrival of the rig on schedule.
Production also continues to run ahead of expectations at the CWLH asset and the Sinphuhorm field, with the latter recently benefitting from strong gas demand in northern Thailand.
The scheduled October 2024 redetermination of the Group’s reserve-based lending facility has been successfully completed, resulting in an unchanged borrowing capacity of US$200 million for the period ending March 2025.
Award and Vesting of Restricted Shares
In connection with his appointment as Executive Chairman, the Company proposes to make an award of 940,000 Restricted Shares to Adel Chaouch shortly.
It is also proposed that Andrew Fairclough, who was appointed as Chief Financial Officer and Executive Director of the Company on 29 October 2024, will be awarded 302,000 Restricted Shares.
The Restricted Share awards referenced above have a three year vesting period and the Company will issue a further announcement when they have been made.
Furthermore, a total of 43,655 Restricted Share awards (the “Vested RS Awards”) have also vested.
Total Voting Rights
Following admission of the Vested RS Awards, the Company will have 541,110,799 Ordinary Shares of £0.001 par value each in issue, and no Ordinary Shares in treasury. Therefore, the total voting rights in the Company will be 541,110,799.
This figure should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.
