Jadestone Energy, an AIM-listed oil and gas company headquartered in Singapore, has successfully completed its bi-annual redetermination process for its $200 million reserve-based lending (RBL) facility, resulting in boosted borrowing capacity for the next 12 months. The enhanced liquidity positions Jadestone favorably as it prepares for the commencement of its Akatara gas project.

Effective from October 1, 2023, until the next redetermination date on March 31, 2024, the borrowing capacity exceeds the maximum facility amount. During this six-month period, Jadestone will have access to $200 million, compared to the previous forecast of around $190 million.

For the subsequent six-month period (2Q – 3Q 2024), the borrowing capacity will be either the approved banking model as of March 31, 2024, or $150 million, whichever is lower. Initially projected at $99 million, the current model anticipates a borrowing capacity of approximately $150 million, excluding capex add-back, subject to changes in model assumptions.

These increases in borrowing capacity stem from the approval of Jadestone's waiver request, allowing the Akatara development cap to rise from 40% to 60%. This increase will remain effective until the September 2024 redetermination date. After the asset's completion test, Jadestone's borrowing base is expected to revert to $200 million.

Additionally, the rise in borrowing capacity for 2Q – 3Q 2024 suggests that Jadestone's liquidity during this period is projected to exceed approximately $100 million, considering the undrawn $31.9 million working capital facility.

Paul Blakeley, Jadestone's President and CEO, expressed appreciation for the constructive relationship with RBL banks, highlighting their confidence in Jadestone's ability to deliver. He emphasized that the increased liquidity aligns with Jadestone's growth ambitions and precedes the start of production at the Akatara field, expected to generate significant cash flow.

In terms of operational performance, Jadestone's Montara project has resumed production since September 2, 2023, averaging around 7,000 bbls/d. The company anticipates oil production rates to stabilize within the 6,000 – 6,500 bbls/d range over time. Additionally, the East Belumut infill campaign's first well is maintaining higher-than-expected production levels.

The Akatara development project is approximately 70% complete, aligning with the end-September 2023 progress target of 65%. With long-lead time items arriving on schedule, the project is on track for commissioning in 1Q 2024, with first gas expected before mid-2024.

Overall, Jadestone remains committed to achieving significant production and cash flow growth in the near term, emphasizing operational efficiency and environmental performance in its gas field development.

Jadestone holds a 90% interest in the Lemang PSC onshore Sumatra, which includes the fully appraised Akatara gas field. The company anticipates a gross plateau production of approximately 6.1 kboe/d from the Akatara gas field over seven years, focusing on low-cost development and environmental sustainability.