Jadestone Energy (LSE:JSE) reported continued strategic progress during the first half of 2026, with a successful Malaysian drilling programme, stronger cash generation and major milestones at its Vietnam gas development helping offset temporary production disruption in Australia.
The company completed a three-well infill drilling campaign on Malaysia’s PM323 block, which tripled production from the field while coming in more than 20% below budget. Jadestone also maintained a strong safety performance, recording 13.6 million working hours without a lost-time injury and no major process safety incidents.
Financially, the group strengthened its capital structure through the issuance of a US$200 million senior secured bond maturing in 2031. The proceeds were used to refinance its reserve-based lending facility, extending Jadestone’s debt maturity profile and providing additional financial flexibility.
Net debt stood at US$25.7 million at the end of the half. Revenue after hedging increased 3% to US$234 million, while operating cash flow nearly doubled compared with the corresponding period.
Production averaged 15,282 barrels of oil equivalent per day, reflecting storm-related and maintenance downtime at the Stag and CWLH fields in Australia. Higher operating expenditure associated with these disruptions contributed to a US$4.8 million loss for the period.
Jadestone has established timelines for restoring production at the affected assets, targeting the return of CWLH output by late in the third quarter of 2026 and Stag by the second quarter of 2027. Business interruption insurance remains in place through May 2027, providing financial protection during the recovery period.
Meanwhile, the company’s longer-term growth strategy received an important boost in Vietnam after authorities approved the field development plan and gas sales agreement for the Nam Du/U Minh discoveries.
The approvals enabled Jadestone to book approximately 32 million barrels of oil equivalent of gross 2P reserves and move forward with contractor selection for key FPSO and field infrastructure packages.
Progress at Nam Du/U Minh provides Jadestone with another potential source of future production and cash flow as the group continues to diversify its Asia-Pacific portfolio across both oil and gas assets.
Despite the temporary production challenges, Jadestone maintained its existing guidance for production, operating expenditure and capital expenditure, as well as its 2025 to 2027 free cash flow expectations.
With Malaysian production benefiting from successful drilling, Australian output recovery plans in place and the Vietnam development progressing, Jadestone continues to build the foundations for longer-term production and cash flow growth.
More about Jadestone Energy
Jadestone Energy plc is an independent upstream oil and gas production and development company focused on the Asia-Pacific region.
Its portfolio includes producing and development assets across Malaysia, Australia and Indonesia, alongside the Nam Du/U Minh gas development in Vietnam.
Key operations include the Montara and Stag assets offshore Australia, the PM323 block in Malaysia and the Akatara gas project. The company focuses on improving operational performance and pursuing capital-efficient growth across its portfolio.
The Nam Du/U Minh development represents an important component of Jadestone’s future growth strategy, with approved development plans and gas sales arrangements supporting the progression of the discoveries towards production and future cash generation.
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