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    Jadestone's 2Q Revenue Rises

Summary

Revenue rose thanks to higher realised oil prices.

by: Shardul Sharma

Posted in:

Natural Gas & LNG News, Asia/Oceania, Security of Supply, Corporate, Exploration & Production, Financials, News By Country, Australia, Indonesia

Jadestone's 2Q Revenue Rises

Singapore's Jadestone Energy’s sales revenue during Q2 2018 stood at $18.3mn, up 1.1% year on year thanks to higher oil prices which offset the impact of lower aggregate production, it said August 28.

The company, whose activities are focused on southeast Asia, managed to reduce its pre-tax loss as well: $3.9mn, down from $14mn for the same period a year earlier.

Production during the quarter was 325.9mn barrels of oil equivalent, down 11.8% year on year. Average realised oil price during 2Q2018 was $71.46/b, up 41.1% year on year, the company said. Production costs of $10.7mn in the quarter were down 52% from $22.2mn in the same period a year ago thanks to lower operating costs.

In Vietnam, Jadestone obtained approval for the Nam Du and U Minh gas field outline development plan from the ministry of industry and trade (MOIT) in May. Work on front-end engineering design (Feed), field development plan studies, and the early phases of gas sales agreement negotiations have begun.

“We have made significant progress toward executing our Vietnam growth strategy in respect of our proposed Nam Du and U Minh gas field development, with the MOIT approvals, and with Feed, gas sales agreement negotiations, and engineering procurement construction discussions now fully underway,” CEO Paul Blakeley said.

In Indonesia, company’s Ogan Komering working area contract expired in May this year. Jadestone said it is negotiating with Indonesian state Pertamina to formalise its participation in the new licence for the Ogan Komering working area, which was granted to Pertamina May 20, 2018.  “The company expects to reach satisfactory binding terms during the fourth quarter of 2018, with participation to be effective from the commencement of the new licence on May 20, 2018,” it said.

Blakely was formerly an executive at Talisman, owner of a 50% stake in Ogan Komering. Jadestone bought the stake from Repsol after the Spanish company became Talisman's owner; and with it the joint operatorship, shared with state Pertamina.