Jadestone Energy PLC on Monday said it expects its production in 2024 to rise, but warned of higher costs at its Australian oil fields.
The Asia-Pacific-focused oil and gas company said it anticipated production of 20,000 to 23,000 barrels of oil equivalent per day, up 55% from 2023 at midpoint. It would be up sharply from 2022’s 11,487 boepd.
Operating costs for 2024 are expected to be between $240 million and $290 million, which the firm said will be flat year-on-year on a comparable basis.
However, it warned that recent work indicated that life-of-field costs at Montara and Stag in Australia will be higher than previously expected due to increases in repair and maintenance costs. It expects the potential for a non-cash impairment dating back to the end of 2023. The costs will be updated into its revised borrowing base from March this year.
Jadestone Energy shares fell 12% to 32.58 pence each on Monday morning in London.
Chief Executive Officer Paul Blakeley said: ‘While we will continue to manage the older producing assets in the portfolio, our drive to acquire newer, higher margin and higher reliability assets is paying off, improving key business metrics and creating value. This is the template for Jadestone’s future, with more emphasis on longer-term value and investment, creating room for further growth and improved shareholder returns.’
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