Jadestone Energy (AIM:JSE), the Asia-Pacific focused oil and gas producer, cut its 2026 production guidance to 16,000-18,000 barrels of oil equivalent per day (boepd), down from 18,000-21,000 boepd.
The revision follows Cyclone Narelle's damage to the CALM buoy at the Stag field and a delayed restart of production at the CWLH FPSO, partly offset by stronger-than-expected performance elsewhere in the portfolio.
First-half production averaged 15,281 boepd, down from 20,368 boepd in the same period last year, while revenue rose 3% to US$234.0 million on higher realised oil prices of US$90.43 a barrel, up 17% year-on-year.
Operating costs climbed to US$142.2 million from US$112.8 million, reflecting one-off CWLH dry-docking costs, foreign exchange effects and roughly US$6 million of Stag cyclone-related costs the group expects to recover through insurance.
Net debt fell sharply to US$25.7 million at 30 June from US$89.1 million at the end of December, after a US$200 million bond issue in March used partly to repay the reserves-based lending facility.
Chief executive T. Mitch Little said the Malaysia drilling campaign delivered all three wells online at over 20% below expected cost, with the East Belumut field now producing at roughly 12,000 barrels of oil per day, more than three times its pre-drilling rate.
"These results highlight one of Jadestone's core strengths, a differentiated capability to find and successfully deliver the upside in existing fields which has been unrecognized by previous operators", Little said.
Stag production is now expected to resume in the second quarter of 2027, with an initial insurance payment of approximately US$12 million expected in the third quarter of this year, while CWLH resumption is targeted roughly the end of the third quarter.
Operating cost guidance of US$260-300 million and capital expenditure guidance of US$50-80 million remain unchanged, with unaudited half-year results due 27 August.
News Intelligence what this means for the company
Jadestone cut its 2026 production guidance by 14–19% to 16,000–18,000 boepd after cyclone damage to the Stag CALM buoy and a delayed CWLH restart, despite strong Malaysia drilling results that tripled East Belumut output. First-half production fell 25% year-on-year to 15,281 boepd, though revenue rose 3% on higher oil prices; the company expects Stag back online in Q2 2027 and CWLH by end-Q3 2026, with a ~US$12 million insurance payment in Q3 2026 offsetting near-term cash flow pressure.
The guidance cut reflects material near-term production loss from weather and operational delays that will weigh on 2026–27 cash generation, though Malaysia upside and insurance recovery provide some offset. Capital expenditure guidance of $50–80 million remains unchanged, signalling management confidence in the underlying asset base despite the setback.
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