Jadestone's H1 Profit Sees Sharp Drop

Asia Pacific-focussed Jadestone Energy September 10 reported net profit after tax of $5.4mn for the six months to June 30 (H1), down from $30.9mn in the year ago period, thanks to lower realised oil price.

Average realised oil prices in H1 of $46.47/b was down 34% yr/yr. Production was 12,116 b/d, down 8% yr/yr due to weather downtime and increased maintenance activities in Q1, and an intentional pull-back on well workovers and well interventions, Jadestone said.

The company’s capital expenditure of $19.5mn during the period was down 37% compared with the prior period owing to the deferral of Nam Du/U Minh development in Vietnam this year and the 49H infill well last year.

Jadestone said it has revised the full year production guidance to 11,000–12,500 b/d, as a result of a slowdown in well interventions, in part due to the greater costs and inefficiencies amidst the Covid-19 restrictions and a deliberate decision to push back generating additional production when oil prices were at their lowest.

“Our focus on cost containment has extended to the deferment of several well workovers, and other non-critical interventions, as I see little point in chasing short term production volume into a profoundly weak crude oil market,” CEO Paul Blakeley said.

The acquisition of a 90% operated interest in the Lemang production sharing contract, marking Jadestone’s re-entry into Indonesia, is on track to close in Q1 2021, the company said.