Jadestone Energy plc (LSE:JSE) reported an increase in group production to approximately 19,000 barrels of oil equivalent per day (boepd) following the successful restart of operations at its CWLH fields offshore Australia.
The Asia-Pacific-focused oil and gas producer confirmed that output had recovered following repairs to subsea infrastructure at CWLH, although its Stag field remains offline.
Despite the improvement in current production, Jadestone maintained its full-year 2026 production guidance of 16,000 to 18,000 boepd.
The company also reported progress across its operations in Australia, Indonesia and Malaysia, alongside ongoing negotiations for the development of its Nam Du/U Minh gas project in Vietnam.
CWLH Production Restored to Approximately 8,000 Barrels Per Day
Production at the CWLH fields resumed following repairs to a subsea riser J-tube connected to the Okha floating production, storage and offloading vessel (FPSO).
The infrastructure issue had prevented the safe restart of operations after the vessel underwent scheduled dry-dock maintenance earlier in 2026.
Following completion of the repairs, the Okha FPSO was successfully reconnected to the fields’ subsea infrastructure.
Production operations and well testing resumed in late September, with all but one of the production wells subsequently brought back online.
In recent days, CWLH has produced approximately 8,000 barrels of oil per day (bopd) on a gross basis, equivalent to around 2,700 bopd net to Jadestone.
The remaining well has been assessed and found to require further remedial work.
The field operator is evaluating options to restore production safely, with Jadestone expecting to provide further information as the assessment progresses.
Vietnam Gas Project Moves Closer to Investment Decision
Jadestone continues to advance its Nam Du/U Minh gas development in Vietnam, with negotiations over a potential farm-out approaching their final stages.
The company is holding discussions with a selected group of prospective counterparties while progressing the principal contracts required for development.
Jadestone said the project continues to receive support from Vietnamese government stakeholders.
In late October 2026, the parties to the project’s Gas Sales and Purchase Agreement agreed to extend the period for satisfying outstanding conditions precedent.
The extension is intended to provide additional time to finalise key contract awards.
Jadestone continues to target a final investment decision before the end of 2026.
However, the project remains dependent on completing the outstanding commercial arrangements and securing the necessary approvals.
Montara Achieves 97% Uptime Following Compressor Upgrade
The Montara field has become Jadestone’s most reliable producing asset following the successful upgrade of its gas re-injection compressor earlier in 2026.
Since returning to stable operations, Montara has averaged approximately 97% uptime.
The company also completed a crude oil lifting of approximately 300,000 barrels in early October.
The cargo achieved a realised price of around US$133 per barrel, representing a premium of approximately US$8 per barrel to the average Dated Brent price for October 2026.
Jadestone continues working to address outstanding requirements under General Direction #2043 and Prohibition Notice #1875 issued by Australia’s offshore energy regulator, NOPSEMA.
The company reported progress towards completing the remaining requirements by early 2027.
Akatara Production Remains in Line with Expectations
Jadestone’s Akatara gas development in Indonesia continues to perform in line with management’s expectations.
The company maintained its forecast that full-year 2026 production will be broadly consistent with 2025 levels.
Akatara resumed production following a short maintenance-related shutdown in April 2026.
Since returning to operations, the facility has achieved average uptime of approximately 96%.
The performance reflects continued operational stability at the asset following the earlier maintenance interruption.
Stag Field Restart Targeted for Second Quarter of 2027
The Stag oil field remains offline while Jadestone prepares to replace its catenary anchor leg mooring (CALM) buoy.
The company continues to expect deployment of the replacement buoy during the first quarter of 2027.
Production is subsequently targeted to resume in the second quarter of 2027.
Jadestone confirmed that its business interruption insurance coverage for Stag extends until May 2027.
Separate insurance coverage of approximately US$30 million is expected to cover the costs of retrieving the existing buoy and purchasing and installing its replacement.
The planned timetable remains dependent on completing the replacement and associated operational preparations.
Malaysian Production Exceeds Expectations
Jadestone reported that year-to-date production from its Peninsular Malaysia operations remains ahead of expectations.
The stronger performance reflects positive results from the Phase 9 drilling programme at the PM323 field earlier in 2026.
Operational reliability has also remained high, with unplanned downtime of approximately 4% during the year to date.
The company continues discussions with Malaysia’s upstream regulator regarding an extension of the PM323 production sharing contract.
Jadestone is seeking improved commercial terms and remains confident that an agreement can be secured in the near term.
Recent crude oil liftings from its Malaysian operations have achieved premiums of approximately US$4 to US$7 per barrel.
Oil Hedging Covers 47% of Forecast Liftings
Jadestone confirmed that approximately 800,000 barrels of oil are currently covered by hedging arrangements for the six months ending March 2027.
The contracts have a weighted average price of US$81.45 per barrel, excluding premiums associated with individual producing assets.
The hedged volumes represent approximately 47% of forecast oil and condensate liftings during the period.
The arrangements include recently established zero-cost collars covering 100,000 barrels, with floor prices ranging from US$80 to US$90 per barrel and ceiling prices between US$100 and US$112 per barrel.
These contracts provide a degree of protection against lower oil prices while limiting the benefit from higher prices on the volumes covered.
The hedging programme forms part of Jadestone’s approach to managing commodity price exposure and supporting cash flow visibility.
Outlook
Jadestone Energy enters the final months of 2026 with group production running at approximately 19,000 boepd following the restart of CWLH.
The company has maintained its annual production guidance of 16,000 to 18,000 boepd, supported by stable operations at Montara and Akatara and stronger-than-expected performance in Peninsular Malaysia.
Near-term priorities include restoring the remaining CWLH production well, completing outstanding regulatory requirements at Montara and progressing the PM323 contract extension.
In Vietnam, Jadestone continues targeting a final investment decision on Nam Du/U Minh before the end of 2026, while the Stag field is expected to return to production during the second quarter of 2027.
The combination of recovered production, operational reliability and existing hedging arrangements provides greater visibility over near-term activity, although future performance remains subject to operational conditions, project execution and commodity prices.
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