Q2 2026 Jadestone Energy PLC Earnings Call

August 27, 2026

Speaker #1: Hello everyone, and thank you for joining us today for the Jadestone Energy Q2 2026 results call. My name is Sammy, and I'll be coordinating your call today.

Operator: Hello, everyone, and thank you for joining us today for the Jadestone Energy H1 2026 results call. My name is Sammy, and I will be coordinating your call today. During the presentation, you can register a question by pressing star followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2 on your telephone keypad to remove yourself from the question queue. I will now hand over to your host, Mitch Little, Chief Executive Officer, to begin. Please go ahead, Mitch.

Operator: Hello, everyone, and thank you for joining us today for the Jadestone Energy H1 2026 Results Call. My name is Sammy, and I will be coordinating your call today. During the presentation, you can register a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two on your telephone keypad to remove yourself from the question queue. I will now hand over to your host, Mitch Little, Chief Executive Officer, to begin. Please go ahead, Mitch.

Speaker #1: During the presentation, you can register a question by pressing star, followed by 1, on your telephone keypad. If you change your mind, please press star, followed by 2, on your telephone keypad to remove yourself from the question queue.

Speaker #1: I'll now hand over to your host, Mitch Little, Chief Executive Officer, to begin. Please go ahead, Mitch.

Speaker #2: Thank you, Sammy. Good morning and good afternoon, everyone. Welcome to Jadestone Energy's half-year 2026 results conference call. I'm Mitch Little, Jadestone's Chief Executive Officer, and I'm joined on the call today by Andrew Fairclough, our Chief Financial Officer.

T. Mitch Little: Thank you, Sammy. Good morning. Good afternoon, everyone. Welcome to Jadestone Energy's Half Year 2026 results conference call. I am Mitch Little, Jadestone's Chief Executive Officer, and I am joined on the call today by Andrew Fairclough, our Chief Financial Officer. I will introduce some of our key H1 achievements and near-term priorities before handing over to Andrew, who will take us through the financial update, and then I will return for the operational review and wrap up. Our slide presentation can be viewed through the webcast and can also be accessed on our website. After our prepared comments, we will open the call for questions and answers. Let me get started. Moving past slide 2, which outlines our standard disclaimers, I will start on slide 3.

Mitch Little: Thank you, Sammy. Good morning. Good afternoon, everyone. Welcome to Jadestone Energy's Half Year 2026 Results Conference Call. I am Mitch Little, Jadestone's Chief Executive Officer, and I am joined on the call today by Andrew Fairclough, our Chief Financial Officer. I will introduce some of our key H1 achievements and near-term priorities before handing over to Andrew, who will take us through the financial update, and then I will return for the operational review and wrap up. Our slide presentation can be viewed through the webcast and can also be accessed on our website. After our prepared comments, we will open the call for questions and answers. Let me get started. Moving past slide 2, which outlines our standard disclaimers, I will start on slide 3.

Speaker #2: I'll introduce some of our key first-half achievements and near-term priorities before handing over to Andrew, who will take us through the financial update. Then I'll return for the operational review and wrap-up.

Speaker #2: Our slide presentation can be viewed through the webcast and can also be accessed on our website. After our prepared comments, we'll open the call for questions and answers.

Speaker #2: So let me get started. Moving past slide 2, which outlines our standard disclaimers, I'll start on slide 3. We really got off to a great start this year, and despite some external headwinds that materialized in Q2, we were able to deliver a solid first half.

T. Mitch Little: We really got off to a great start this year, and despite some external headwinds that materialized in Q2, we were able to deliver a solid H1. In particular, a number of our strategic objectives were achieved early in the year and positive momentum continues. Starting with HSE performance, where our excellent results continued through the period. Across our Indonesia, Malaysia, and Australia production operations, we have now achieved an aggregate 13.6 million man hours without a lost time incident. There were no significant environmental incidents during the period, no material losses of primary containment, and no regulatory enforcement notices. Beyond managing the ordinary day-to-day business risks, non-routine activities, particularly the Stag shut-in ahead of Cyclone Narelle and the aftermath, the Malaysia drilling campaign, and continued tank integrity management activities at Montara were also all conducted safely.

Mitch Little: We really got off to a great start this year, and despite some external headwinds that materialized in Q2, we were able to deliver a solid H1. In particular, a number of our strategic objectives were achieved early in the year and positive momentum continues. Starting with HSE performance, where our excellent results continued through the period. Across our Indonesia, Malaysia, and Australia production operations, we have now achieved an aggregate 13.6 million man hours without a lost time incident. There were no significant environmental incidents during the period, no material losses of primary containment, and no regulatory enforcement notices. Beyond managing the ordinary day-to-day business risks, non-routine activities, particularly the Stag shut-in ahead of Cyclone Narelle and the aftermath, the Malaysia drilling campaign, and continued tank integrity management activities at Montara were also all conducted safely.

Speaker #2: In particular, a number of our strategic objectives were achieved early in the year, and positive momentum continues. Starting with HSE performance, our excellent results continued through the period.

Speaker #2: Across our Indonesia, Malaysia, and Australia production operations, we've now achieved an aggregate 13.6 million man-hours without a lost-time incident. There were no significant environmental incidents during the period, no material losses of primary containment, and no regulatory enforcement notices.

Speaker #2: Beyond managing the ordinary day-to-day business risks, non-routine activities—particularly the stag shut-in ahead of Cyclone Narelle and the aftermath, the Malaysia drilling campaign, and continued tank integrity management activities at Montara—were also all conducted safely.

Speaker #2: We continue to leverage upgraded internal procedures and monitoring programs, and are making good progress toward closeout of the remaining open actions associated with the Montara General Direction received in September of last year.

T. Mitch Little: We continue to leverage upgraded internal procedures and monitoring programs and are making good progress towards closeout of the remaining open actions associated with the Montara general direction received in September of last year. In Vietnam, strong momentum continues. We have made significant progress towards realizing the value of the Nam Du and U Minh discoveries with FDP approval and signature of the gas sales agreement during the H1. We also launched a farm-out process, which has generated significant industry interest and is progressing towards final negotiations with select shortlisted bidders. Our H1 performance was impacted by two external unplanned downtime events at CWLH and Stag. Since our trading statement update, remediation plans have been further matured, and we reconfirm expectations of restart at CWLH near the end of Q3, with Stag still targeted for Q2 of next year, although we continue to look for opportunities to accelerate on that.

Mitch Little: We continue to leverage upgraded internal procedures and monitoring programs and are making good progress towards closeout of the remaining open actions associated with the Montara general direction received in September of last year. In Vietnam, strong momentum continues. We have made significant progress towards realizing the value of the Nam Du and U Minh discoveries with FDP approval and signature of the gas sales agreement during the H1. We also launched a farm-out process, which has generated significant industry interest and is progressing towards final negotiations with select shortlisted bidders. Our H1 performance was impacted by two external unplanned downtime events at CWLH and Stag. Since our trading statement update, remediation plans have been further matured, and we reconfirm expectations of restart at CWLH near the end of Q3, with Stag still targeted for Q2 of next year, although we continue to look for opportunities to accelerate on that.

Speaker #2: In Vietnam, strong momentum continues. We've made significant progress toward realizing the value of the Nam Du and U Minh discoveries, with FDP approval and the signature of the gas sales agreement during the first half.

Speaker #2: We also launched a farm-out process, which has generated significant industry interest and is progressing toward final negotiations with select, shortlisted bidders. Our first-half performance was impacted by two external, unplanned downtime events.

Speaker #2: At CWH and STAG, since our trading statement update, remediation plans have further matured, and we reconfirm expectations of a restart at CWH near the end of Q3, with STAG’s start still targeted for Q2 of next year.

Speaker #2: Although we continue to look for opportunities to accelerate on that, our near-term priority for the business is to restore production to our full potential, which today is well above 20,000 BOE a day.

T. Mitch Little: Our near-term priority for the business is to restore production to our full potential, which today is well above 20,000 BOE a day, while continuing to advance our organic growth through delivery of FID by year-end on the Nam Du U Minh development project. I will now hand you over to Andrew, who will take you through the financial update.

Mitch Little: Our near-term priority for the business is to restore production to our full potential, which today is well above 20,000 BOE a day, while continuing to advance our organic growth through delivery of FID by year-end on the Nam Du U Minh development project. I will now hand you over to Andrew, who will take you through the financial update.

Speaker #2: While continuing to advance our organic growth through delivery of FID by year-end on the Nam Du Minh development project. I'll now hand you over to Andrew, who will take you through the financial update.

Speaker #1: Thanks, Mitch. On slide 4, we have set out the key operational and financial metrics for the business in the first half of the year.

Andrew Fairclough: Thanks, Mitch. On slide 4, we have set out the key operational and financial metrics for the business in the H1 of the year. As we have previously disclosed, H1 production was negatively impacted by unplanned downtime at Stag and CWLH, both of which now have defined remedial work programs and targeted restart timelines, which Mitch will talk more about later in the presentation. Despite this impact on production, H1 revenues before hedging increased 13% to $261 million, and after hedging charges of $27 million, net revenue was $234 million. Strong production in the Q1 ahead of the unplanned downtime at Stag and then CWLH, allied to the timing of our liftings, helped underpin total group lifted volumes in the H1.

Speaker #1: As we've previously disclosed, first-half production was negatively impacted by unplanned downtime at STAG and CWLH, both of which now have defined remedial work programs and targeted restart timelines, which Mitch will talk more about later in the presentation.

Speaker #1: Despite this impact on production, first-half revenues before hedging increased 13% to $261 million, and after hedging charges of $27 million, net revenue was $234 million.

Speaker #1: Strong production in the first quarter, ahead of the unplanned downtime at STAG and then CWLH, allied to the timing of our liftings, helped underpin total group lifted volumes in the first half, while the strength of the oil price, predominantly through the second quarter, together with high premiums for some of our cargoes, increased the realized price to just over $90 per barrel.

Andrew Fairclough: While the strength of the oil price, predominantly through the Q2, together with high premiums for some of our cargoes, increased the realized price to just over $90 per barrel. In fact, our last Stag lifting in April, which was a partial cargo accumulated prior to the Cyclone Narelle shut-in, priced with a $27.50 per barrel premium to Brent, while liftings in Malaysia have currently priced with a premium around $7 per barrel, as did our latest cargo of Montara crude. Field operating costs, which are operating costs, workovers, logistics, repairs and maintenance and transportation, were $122 million in the period, but this included a number of non-recurring costs for the maintenance dry dock program of the Okha FPSO, which occurs every five years, as well as a subsea campaign at CWLH.

Speaker #1: In fact, our last STAG listing in April, which was a partial cargo accumulated prior to the Cyclone Narelle shut-in, priced with a $27.50 per barrel premium to Brent, while listings in Malaysia have currently priced with a premium around $7 per barrel, as did our latest cargo of Montara crude.

Speaker #1: Field operating costs—which are operating costs, workovers, logistics, repairs and maintenance, and transportation—were $122 million in the period. But this included a number of non-recurring costs for the maintenance dry dock program of the Oka FPSO, which occurs every five years, as well as a subsea campaign at CWLH.

Speaker #1: It also included repair and maintenance costs associated with the Stag carboy recovery activities, although this was largely offset by reduced operating activity at the field.

Andrew Fairclough: It also included repair and maintenance costs associated with the Stag CALM buoy recovery activities, although this was largely offset by reduced operating activity at the field. We saw some increases in logistics costs with higher charge rates for vessels and helicopters, and also higher fuel costs on the back of stronger oil prices, as well as some foreign exchange headwinds with the Australian dollar strengthening against the USD. Adjusted unit operating costs increased to $37.64 per barrel, impacted by a combination of lower production in the period and the higher field operating costs. Adjusted EBITDAX, which excludes the hedging impact during the period as well as other adjustments, was $102 million compared to $100 million in the comparative period.

Speaker #1: We saw some increases in logistics costs, with higher charge rates for vessels and helicopters, and also higher fuel costs on the back of stronger oil prices.

Speaker #1: As well as some foreign exchange headwinds, with the Australian dollar strengthening against the US dollar. Adjusted unit operating costs increased to $37.64 per barrel, impacted by a combination of lower production in the period and higher field operating costs.

Speaker #1: Adjusted EBITDAX, which excludes the hedging impact during the period, as well as other adjustments, was $102 million, compared to $100 million in the comparative period.

Speaker #1: Disappointingly, we generated a small loss after tax of $4.8 million, with the loss of production at STAG and CWLH outweighing stronger oil prices, and the income statement continues to be influenced by certain non-cash factors, such as the charge associated with CWLH inventory movement.

Andrew Fairclough: Disappointingly, we generated a small loss after tax of $4.8 million with the loss of production at Stag and CWLH outweighing stronger oil prices. The income statement continues to be influenced by certain non-cash factors such as the charge associated with CWLH inventory movement. Net cash from operations was $97 million, nearly double H1 2025, and I will talk a little bit more about that later. Capital expenditure for the period was $35 million, the bulk of which was the PM-323 Phase-9 drilling campaign, which was successfully executed under budget, and we will see the tail end of payments from that continue to come through in the H2. Net debt at 30 June 2026 was $26 million, comprising $174 million of cash equivalents and $200 million of debt arising from the bond issuance earlier this year. Moving on to slide 5.

Speaker #1: Net cash from operations was $97 million, nearly double H1 2025, and I'll talk a little bit more about that later. Capital expenditure for the period was $35 million, the bulk of which was the PM323 Phase 9 drilling campaign, which was successfully executed under budget, and we'll see the tail end of payments from that continue to come through in the second half.

Speaker #1: Net debt at 30 June 2026 was $26 million, comprising $174 million of cash and cash equivalents, and $200 million of debt arising from the bond issuance earlier this year.

Speaker #1: Moving on to slide 5, this provides more detail on our cost performance during the half year. The chart on the left compares reported production costs for the first half of '26 versus the first half of 2025, and reported production costs can be split into underlying field operating costs, royalties and production-based payments, and non-cash charges, of which the main component is the inventory adjustment.

Andrew Fairclough: This provides more detail on our cost performance during the half year. The chart on the left compares reported production costs for the H1 2026 versus the H1 2025. Reported production costs can be split into underlying field operating costs, royalties and production-based payments, and non-cash charges, of which the main component is the inventory adjustment. Year-on-year, reported production costs increased by $44 million to $164 million. However, of this increase, approximately $18 million relates to non-cash inventory movements charged to production costs. This is primarily driven by CWLH, reflecting the movement from an opening underlift at the start of the period to a closing overlift at the end of the H1.

Speaker #1: Year on year, reported production costs increased by $44 million to $164 million. However, of this increase, approximately $18 million relates to non-cash inventory movements charged to production costs.

Speaker #1: This is primarily driven by CWLH, reflecting the movement from an opening underlift at the start of the period to a closing overlift at the end of the first half.

Speaker #1: As you can see on the right-hand side of the slide, a significant proportion of the increase in field operating costs is non-recurring in nature, with approximately $14 million associated with the Oka FPSO dry dock and subsea operations.

Andrew Fairclough: As you can see on the right-hand side of the slide, a significant proportion of the increase in field operating costs are non-recurring in nature, with approximately $14 million associated with the Okha FPSO dry dock and subsea operations. Stag costs were essentially flat at $6 million of cost incurred in relation to the CALM buoy, was largely offset by reduced operating activity. Costs for the CALM buoy activity will be recovered through our insurance. As mentioned earlier, we saw increases in logistics costs across the business in the H1, partly related to higher fuel costs, but also general inflation feeding its way into contract renewals. Across our Australian assets, we saw upward pressure on USD equivalent costs due to the year-on-year strengthening of the Australian dollar against the US dollar.

Speaker #1: STAG costs were essentially flat at $6 million of cost incurred in relation to the CWLH—sorry, to the Carboy—which was largely offset by reduced operating activity.

Speaker #1: Costs for the carboy activity will be recovered through our insurance. As mentioned earlier, we saw increases in logistics costs across the business in the first half, partly related to higher fuel costs, but also general inflation feeding its way into contract renewals.

Speaker #1: Across our Australian assets, we saw upward pressure on US dollar equivalent costs due to the year-on-year strengthening of the Australian dollar against the US dollar.

Speaker #1: In Australia, around 80 to 85 percent of operating costs, depending on the level of activity at the time, are Australian dollar-denominated, and we have seen about a 10 percent movement in the exchange rate over the past year.

Andrew Fairclough: In Australia, around 80% to 85% of operating costs, depending on the level of activity at the time, are Australian dollar denominated, and we have seen about a 10% movement in the exchange rate over the past year. Moving to slide 6, which summarizes H1 2026 cash flows. As usual, several line items from the cash flow statement have been consolidated in this bridge for simplicity. Moving left to right, we can see that cash from operations after working capital was $97 million. Before working capital, this was $46 million, and it is worth highlighting a couple of factors that have had an impact in this half. Firstly, in relation to CWLH, based on a normal listing and production schedule, we would expect the overlift position in this period to have reduced significantly by the end of the H1, and any inventory movement to have a relatively small impact.

Speaker #1: Moving to slide 6, which summarizes first half 2026 cash flows. As usual, several line items from the cash flow statement have been consolidated in this bridge for simplicity.

Speaker #1: But moving left to right, we can see that cash from operations after working capital was $97 million. Before working capital, this was $46 million, and it's worth highly highlighting a couple of factors that have had an impact in this half.

Speaker #1: Firstly, in relation to CWLH, based on a normal listing and production schedule, we'd expect the overlift position in this period to have reduced significantly by the end of the first half, and any inventory movement to have a relatively small impact.

Speaker #1: However, we completed a full listing in the first quarter and a smaller, shared listing ahead of the FPSO coming off station in March for the dry dock, which created an overlift.

Andrew Fairclough: However, we completed a full lifting in Q1 and a smaller shared lifting ahead of the FPSO coming off station in March for the dry dock, which created an overlift. As there has been no subsequent production, which would normally unwind this overlift position, we saw a $22.6 million charge to production costs in H1. Also, in relation to CWLH, the $14 million of non-recurring dry dock and subsea costs further reduced operating cash flow. We would also normally expect this to be capitalized rather than expensed. However, our JV partner is currently treating this as an operating cost, and while this is something that we are reviewing, it will currently continue to account for as an operating cost. Lastly, with Stag shut in, while we undertake the remedial work plan, we have comparable levels of operating costs but lower revenues compared to last year.

Speaker #1: As there has been no subsequent production, which would normally unwind this overlift position, we saw a $22.6 million hit. Also in relation to CWLH, the $14 million of non-recurring dry dock and subsea costs further reduced operating cash flow.

Speaker #1: We would also normally expect this to be capitalized rather than expensed. However, our JV partner is currently treating this as an operating cost, and while this is something that we're reviewing, we will currently continue to account for it as an operating cost.

Speaker #1: And lastly, with Stag shut in while we undertake the remedial work plan, we have comparable levels of operating costs but lower revenues compared to last year.

Speaker #1: To date, we have accrued $11.1 million of insurance proceeds in the first half of 2026, which is accounted for as other income and excluded from operating cash flow before working capital movements.

Andrew Fairclough: To date, we have accrued $11.1 million of insurance proceeds in H1 2026, which is accounted for as other income and excluded from operating cash flow before working capital movements. We anticipate these funds will be received in Q3, although quite possibly in the next week or so. Moving on, cash CapEx was $32 million, of which approximately 70% was related to the 323 drilling campaign. There were significant financing cash flow movements in the period related to the debt refinancing. We raised a net $195 million from the Nordic bond issue, the majority of which was then used to fully repay the outstanding RBL balance of $150 million at the start of the year. These movements, plus other financing and investing cash flow movements, resulted in consolidated cash balances of $174 million as at 30 June. Moving on to slide seven.

Speaker #1: We anticipate these funds will be received in the third quarter, although quite possibly in the next week or so. Moving on, cash capex was $32 million, of which approximately 70 percent was related to the 323 drilling campaign.

Speaker #1: There were significant financing cash flow movements in the period related to the debt refinancing. We raised a net $195 million from the Nordic bond issue, the majority of which was then used to fully repay the outstanding RBL balance of $150 million at the start of the year.

Speaker #1: These movements, plus other financing and investing cash flow movements, resulted in consolidated cash balances of $174 million as at 30 June. And moving on to slide 7, in March, as I just said, we successfully refinanced the RBL through the issue of Asia Pacific's first E&P Nordic bond for many years.

Andrew Fairclough: In March, as I just said, we successfully refinanced the RBL through the issue of Asia Pacific's first E&P Nordic bond for many years. At the end of June, we had over $200 million in available liquidity, once the undrawn working capital facilities included. Whilst this remains a strong position at the half year, I would remind everyone that our liquidity is subject to the timing of cash inflows from liftings and cash flows from expenditure, of course. This was particularly relevant this year given the impact of suspended production at Stag and CWLH and corresponding deferral of liftings through H2. We have also continued to manage our hedge positions during the year, which is intended to protect our operational cost base.

Speaker #1: At the end of June, we had over $200 million in available liquidity, once the undrawn working capital facilities are included. Whilst this remains a strong position at the half-year, I would remind everyone that our liquidity is subject to the timing of cash inflows from listings and cash flows from expenditure, of course.

Speaker #1: This would be particularly relevant this year, given the impact of suspended production at Stag and CWLH, and the corresponding deferral of liftings through the second half.

Speaker #1: We've also continued to manage our hedge positions during the year, which are intended to protect our operational cost base. The majority of hedges in the first half were executed 9 to 12 months ago, and the third quarter similarly reflects hedges that were implemented before benchmark oil prices increased with the conflict in the Middle East.

Andrew Fairclough: The majority of hedges in H1 were executed nine to 12 months ago, and Q3 similarly reflects hedges that were implemented before benchmark oil prices increased with conflict in the Middle East. More recently, we have been able to take advantage of stronger Brent prices and have added 700,000 barrels hedged at just over $80 per barrel Brent in Q4 of this year and also in Q1 of next year. Overall, we currently have 1.3 million barrels hedged through to the end of Q1 2027 at a weighted average price of just over $74 per barrel, excluding any premiums. This represents approximately 35% of forecast oil and condensate production over the period, and we will continue to hedge for downside protection and support future expenditure. With that, I will hand back to Mitch.

Speaker #1: More recently, we've been able to take advantage of stronger Brent prices and have added 700,000 barrels hedged at just over $80 per barrel Brent, in the fourth quarter of this year and also in the first quarter of next year.

Speaker #1: Overall, we've currently got 1.3 million barrels hedged through to the end of the first quarter of 2027, at a weighted average price of just over $74 per barrel, excluding any premiums.

Speaker #1: This represents approximately 35 percent of forecast oil and condensate production over the period, and we'll continue to hedge for downside protection and to support future expenditure.

Speaker #1: And with that, I will hand back to Mitch.

Speaker #2: Great, thanks, Andrew. Starting from slide 8, I'll continue by running through the operations and asset updates. I'd like to start with the standout success of this year's Malaysia drilling campaign, which was delivered safely and significantly below budget.

T. Mitch Little: Great. Thanks, Andrew. Starting from slide 8, I will continue by running through the operations and asset updates. I would like to start with the standout success of this year's Malaysia drilling campaign, which was delivered safely and significantly below budget. The drilling campaign within the East Belumut field on the PM323 PSC was targeting the southwest extension of the field, which we identified as an undeveloped localized structural high during our 2023 drilling campaign. The 2026 program was originally planned as two firm and one contingent well drilling campaign. But with near real-time interpretation and integration of subsurface results from the first two wells, we confirmed the value proposition of the third well and proceeded to drill and complete it in sequence.

Mitch Little: Great. Thanks, Andrew. Starting from slide 8, I will continue by running through the operations and asset updates. I would like to start with the standout success of this year's Malaysia drilling campaign, which was delivered safely and significantly below budget. The drilling campaign within the East Belumut field on the PM323 PSC was targeting the southwest extension of the field, which we identified as an undeveloped localized structural high during our 2023 drilling campaign. The 2026 program was originally planned as two firm and one contingent well drilling campaign. But with near real-time interpretation and integration of subsurface results from the first two wells, we confirmed the value proposition of the third well and proceeded to drill and complete it in sequence.

Speaker #2: The drilling campaign within the East Bellamyt field, on the PM323 PSC, was targeting the southwest extension of the field, which we identified as an undeveloped, localized structural high during our 2023 drilling campaign.

Speaker #2: The 2026 program was originally planned as a two firm and one contingent well drilling campaign. But with near real-time interpretation and integration of subsurface results from the first two wells, we confirmed the value proposition of the third well and proceeded to drill and complete it in sequence.

Speaker #2: As you can see from the depth map on the top right of this slide, all three wells targeted the structural high of the southwest extension area in order to fully capture the previously undrained oil reserves in this area of the field.

T. Mitch Little: As you can see from the depth map on the top right of this slide, all three wells targeted the structural high of the southwest extension area in order to fully capture the previously undrained oil reserves in this area of the field. The wells were drilled using modern geosteering tools, which allows us to utilize real-time data while drilling to ensure optimal placement of the well path near the top of the reservoir, thereby optimizing recovery by maintaining maximum standoff from the oil-water contact. You can see from the cross-sections on the left of this slide that our drilling team's efforts to optimize the well trajectories, working with their subsurface counterparts, was very successful, bumping up against the very top of the reservoir in several cases to maximize recovery from the up to 14-meter thick oil column in this area of the field.

Mitch Little: As you can see from the depth map on the top right of this slide, all three wells targeted the structural high of the southwest extension area in order to fully capture the previously undrained oil reserves in this area of the field. The wells were drilled using modern geosteering tools, which allows us to utilize real-time data while drilling to ensure optimal placement of the well path near the top of the reservoir, thereby optimizing recovery by maintaining maximum standoff from the oil-water contact. You can see from the cross-sections on the left of this slide that our drilling team's efforts to optimize the well trajectories, working with their subsurface counterparts, was very successful, bumping up against the very top of the reservoir in several cases to maximize recovery from the up to 14-meter thick oil column in this area of the field.

Speaker #2: The wells were drilled using modern geosteering tools, which allow us to utilize real-time data while drilling to ensure optimal placement of the well path near the top of the reservoir, thereby optimizing recovery by maintaining maximum standoff from the oil-water contact.

Speaker #2: You can see from the cross-sections on the left of this slide that our drilling team's efforts to optimize the well trajectories, working with their subsurface counterparts, was very successful.

Speaker #2: Bumping up against the very top of the reservoir in several cases to maximize recovery from the up to 14-meter-thick oil column in this area of the field.

Speaker #2: Moving to slide 9, which summarizes the impressive results of the three wells: in aggregate, they contributed an incremental 8,500 barrels of oil per day.

T. Mitch Little: Moving to slide 9, which summarizes the impressive results of the three wells. In aggregate, they contributed an incremental 8,500 barrels of oil per day. Delivering the program more than 20% below budget is notable given the considerable extended reach nature of all three wells. The second well in the campaign was the longest well ever drilled on the East Belumut field. The second well also set a record across all basins in Malaysia for the highest ever extended reach drilling ratio, which measures the horizontal distance of the well away from its surface location, divided by the well's true vertical depth, and is an industry standard metric for measuring difficulty and complexity of extended reach well designs.

Mitch Little: Moving to slide 9, which summarizes the impressive results of the three wells. In aggregate, they contributed an incremental 8,500 barrels of oil per day. Delivering the program more than 20% below budget is notable given the considerable extended reach nature of all three wells. The second well in the campaign was the longest well ever drilled on the East Belumut field. The second well also set a record across all basins in Malaysia for the highest ever extended reach drilling ratio, which measures the horizontal distance of the well away from its surface location, divided by the well's true vertical depth, and is an industry standard metric for measuring difficulty and complexity of extended reach well designs.

Speaker #2: Delivering the program more than 20% below budget is notable, given the considerable extended reach nature of all three wells. The second well in the campaign was the longest well ever drilled on the East Bellamyt Field.

Speaker #2: The second well also set a record across all basins in Malaysia for the highest-ever extended reach drilling ratio, which measures the horizontal distance of the well away from its surface location divided by the well's true vertical depth, and is an industry-standard metric for measuring the difficulty and complexity of designs.

Speaker #2: On the right-hand side of this chart, we provide a summary of the impact the program has had on the field—impressively more than tripling the field production rate prior to commencement of the campaign.

T. Mitch Little: On the right-hand side of this chart, we provide a summary of the impact the program has had on the field, impressively more than tripling the field production rate prior to commencement of the campaign. Without question, an inspiring performance by our in-house drilling and subsurface teams and a strong example of the operational excellence we are working hard to instill across our business. I would like to take this opportunity to congratulate and recognize all of the Jadestone employees, our third-party vendors and partners, as well as the Malaysia Petroleum Management for their support and commitment in helping us deliver this impressive result. The demonstration of our value creation capabilities and top-tier technical and execution skills provides us with a strong calling card for growth ambitions within Malaysia and across the region.

Mitch Little: On the right-hand side of this chart, we provide a summary of the impact the program has had on the field, impressively more than tripling the field production rate prior to commencement of the campaign. Without question, an inspiring performance by our in-house drilling and subsurface teams and a strong example of the operational excellence we are working hard to instill across our business. I would like to take this opportunity to congratulate and recognize all of the Jadestone employees, our third-party vendors and partners, as well as the Malaysia Petroleum Management for their support and commitment in helping us deliver this impressive result. The demonstration of our value creation capabilities and top-tier technical and execution skills provides us with a strong calling card for growth ambitions within Malaysia and across the region.

Speaker #2: Without question, an inspiring performance by our in-house drilling and subsurface teams, and a strong example of the operational excellence we are working hard to instill across our business.

Speaker #2: I'd like to take this opportunity to congratulate and recognize all of the Jadestone employees, our third-party vendors and partners, as well as the Malaysia Petroleum Ministry for their support and commitment in helping us deliver this impressive result.

Speaker #2: The demonstration of our value creation capabilities and top-tier technical and execution skills provides us with a strong calling card for growth ambitions within Malaysia and across the region.

Speaker #2: One small component of that ambition is an extension of the PM323 PSC, which would facilitate further development opportunities, and where we remain in active and positive dialogue with the regulator following the successful outcome of the Phase 9 drilling program.

T. Mitch Little: One small component of that ambition is an extension of the PM323 PSC, which would facilitate further development opportunities and where we remain in active and positive dialogue with the regulator following the successful outcome of the Phase-9 drilling program. Moving now to slide 10, strong momentum continues across our next leg of organic growth, the Nam Du U Minh development in Vietnam. Since we last spoke when presenting full year 2025 results in May, there has been considerable effort and progress on the engineering and technical aspects of the project, which culminated in a recommendation to PetroVietnam on both the FPSO and the field facilities EPCIC contracts. I am pleased to report that PetroVietnam has approved our FPSO contractor recommendation earlier this month and are actively progressing their review of our EPCIC contractor proposal for the field infrastructure. Moving to our farm-out process.

Mitch Little: One small component of that ambition is an extension of the PM323 PSC, which would facilitate further development opportunities and where we remain in active and positive dialogue with the regulator following the successful outcome of the Phase-9 drilling program. Moving now to slide 10, strong momentum continues across our next leg of organic growth, the Nam Du U Minh development in Vietnam. Since we last spoke when presenting full year 2025 results in May, there has been considerable effort and progress on the engineering and technical aspects of the project, which culminated in a recommendation to PetroVietnam on both the FPSO and the field facilities EPCIC contracts. I am pleased to report that PetroVietnam has approved our FPSO contractor recommendation earlier this month and are actively progressing their review of our EPCIC contractor proposal for the field infrastructure. Moving to our farm-out process.

Speaker #2: Moving now to slide 10, strong momentum continues across our next leg of organic growth, the Nam Du Minh development in Vietnam. Since we last spoke, when presenting full year 2025 results in May, there's been considerable effort and progress on the engineering and technical aspects of the project, which culminated in a recommendation to PetroVietnam on both the FPSO and the field facilities EPCIC contracts.

Speaker #2: I'm pleased to report that PetroVietnam approved our FPSO contractor recommendation earlier this month and is actively progressing their review of our EPCIC contractor proposal for the field infrastructure.

Speaker #2: Moving to our farm-out process, we have been encouraged by both the number and quality of interested parties, and the positive feedback on the quality of the technical work supporting both the initial development and the significant upside potential on our licenses.

T. Mitch Little: We have been encouraged by both the number and quality of interested parties, and the positive feedback on the quality of the technical work supporting both the initial development and the significant upside potential on our licenses, which we detailed during our 2025 results presentation in May. The process is now moving into the late stages, and we are currently engaged in final negotiations with select shortlisted bidders. The project and ongoing farm-out are progressing according to plan, and we continue to target a final investment decision by the end of 2026. On the next couple of slides, starting with slide 11, I will cover updates across the remaining portfolio. Starting with Akatara, which continues to perform well. The asset safety record is really impressive and a real testament to the strong HSE principles and practices that we have embedded across Jadestone.

Mitch Little: We have been encouraged by both the number and quality of interested parties, and the positive feedback on the quality of the technical work supporting both the initial development and the significant upside potential on our licenses, which we detailed during our 2025 results presentation in May. The process is now moving into the late stages, and we are currently engaged in final negotiations with select shortlisted bidders. The project and ongoing farm-out are progressing according to plan, and we continue to target a final investment decision by the end of 2026. On the next couple of slides, starting with slide 11, I will cover updates across the remaining portfolio. Starting with Akatara, which continues to perform well. The asset safety record is really impressive and a real testament to the strong HSE principles and practices that we have embedded across Jadestone.

Speaker #2: As we detailed during our 2025 results presentation in May, the process is now moving into the late stages, and we are currently engaged in final negotiations with select, shortlisted bidders.

Speaker #2: The project and ongoing farm-out are progressing according to plan, and we continue to target the final investment decision by the end of 2026. On the next couple of slides, starting with slide 11, I'll cover updates across the remaining portfolio.

Speaker #2: Starting with ACATARA, which continues to perform well. The asset safety record is really impressive and a real testament to the strong HSE principles and practices that we have embedded across Jadestone.

Speaker #2: With around 9.5 million cumulative man-hours worked at this asset without an LTI, first half production was nearly flat to the year-ago period. Since resuming production after a brief period of downtime in April, the plant has produced an average of 6,400 barrels of oil equivalent per day and delivered uptime above 98 percent.

T. Mitch Little: With around 9.5 million cumulative man-hours worked at this asset without an LTI. H1 production was nearly flat to the year-ago period, and since resuming production after a brief period of downtime in April, the plant has produced an average of 6,400 BOE per day and delivered uptime above 98%. Planned maintenance, critical sparing philosophy, and operating procedures continue to be enhanced with a focus on protecting the top decile reliability currently being delivered. We continue to study further incremental debottlenecking potential at the plant after the success of the initial phase last year, as well as the subsurface work to evaluate prospectivity of the Lemang PSC to satisfy the remaining exploration commitment on the license. Moving to Montara. The asset produced around 4,200 barrels per day in H1, in line with plan.

Mitch Little: With around 9.5 million cumulative man-hours worked at this asset without an LTI. H1 production was nearly flat to the year-ago period, and since resuming production after a brief period of downtime in April, the plant has produced an average of 6,400 BOE per day and delivered uptime above 98%. Planned maintenance, critical sparing philosophy, and operating procedures continue to be enhanced with a focus on protecting the top decile reliability currently being delivered. We continue to study further incremental debottlenecking potential at the plant after the success of the initial phase last year, as well as the subsurface work to evaluate prospectivity of the Lemang PSC to satisfy the remaining exploration commitment on the license. Moving to Montara. The asset produced around 4,200 barrels per day in H1, in line with plan.

Speaker #2: Planned maintenance, critical sparing philosophy, and operating procedures continue to be enhanced, with a focus on protecting the DOPS and maintaining the top decile reliability currently being delivered.

Speaker #2: We continue to study further incremental de-bottlenecking potential at the plant, following the success of the initial phase last year, as well as conducting subsurface work to evaluate the prospectivity of the Lamang PSC to satisfy the remaining exploration commitment on the license.

Speaker #2: Moving to Montara, the asset produced around 4,200 barrels per day in the first half, in line with plan. Along with our ongoing integrity management activity on the tanks and FPSO topsides in May, we successfully overhauled the FPSO's re-injection compressor.

T. Mitch Little: Along with our ongoing integrity management activity on the tanks and FPSO topsides in May, we successfully overhauled the FPSO's reinjection compressor. The upgrade has increased the compressor throughput by about 30%, which has allowed us to significantly reduce flaring, eliminating around 100,000 tons of CO2 equivalent emissions per year, increase reinjection volumes for reservoir management, and increase gas lift volumes with an associated uplift in oil production of around 250 barrels of oil per day. The project was delivered for under $5 million, and on the back of increased production and reduced carbon credit purchases, will pay out in well under a year. We continue to maintain constructive engagement with the Australian offshore regulator, NOPSEMA, to close out the prior general direction. Detailed plans with a target to address all open items by the end of this year have been developed and comprehensively reviewed with the regulator.

Mitch Little: Along with our ongoing integrity management activity on the tanks and FPSO topsides in May, we successfully overhauled the FPSO's reinjection compressor. The upgrade has increased the compressor throughput by about 30%, which has allowed us to significantly reduce flaring, eliminating around 100,000 tons of CO2 equivalent emissions per year, increase reinjection volumes for reservoir management, and increase gas lift volumes with an associated uplift in oil production of around 250 barrels of oil per day. The project was delivered for under $5 million, and on the back of increased production and reduced carbon credit purchases, will pay out in well under a year. We continue to maintain constructive engagement with the Australian offshore regulator, NOPSEMA, to close out the prior general direction. Detailed plans with a target to address all open items by the end of this year have been developed and comprehensively reviewed with the regulator.

Speaker #2: The upgrade has increased the compressor throughput by about 30 percent, which has allowed us to significantly reduce flaring—eliminating around 100,000 tons of CO2-equivalent emissions per year—increase re-injection volumes for reservoir management, and increase gas lift volumes, with an associated uplift in oil production of around 250 barrels of oil per day.

Speaker #2: The project was delivered for under $5 million, and on the back of increased production and reduced carbon credit purchases, will pay out in well under a year.

Speaker #2: We continue to maintain constructive engagement with the Australian offshore regulator, NOPSEMA, to close out the prior general direction. Detailed plans with a target to address all open items by the end of this year have been developed and comprehensively reviewed with the regulator.

Speaker #2: We also continue to progress our evaluation of developing the estimated 800 Bcf of gas in place in and around the Montara field. The study has passed the initial screening phase and has now progressed from the conceptual to the appraisal phase, with an aim to understand the commercial viability by the first half of next year.

T. Mitch Little: We also continue to progress our evaluation of developing the estimated 800 BCF of gas in place in and around the Montara field. The study has passed the initial screening phase and has now progressed from conceptual to appraisal phase with an aim to understand the commercial viability by H1 of next year. A successful outcome has the potential to extend life of the asset and elements of its infrastructure by several years. Moving now to slide 12. In our July trading statement, we announced a decision to replace the CALM buoy at Stag rather than repair the existing one following the damage caused by Cyclone Narelle in late March. Over the past month, we have made significant progress in both our due diligence of the proposed replacement CALM buoy, an image of which you can see on this slide, and the commercial agreements required to purchase it.

Mitch Little: We also continue to progress our evaluation of developing the estimated 800 BCF of gas in place in and around the Montara field. The study has passed the initial screening phase and has now progressed from conceptual to appraisal phase with an aim to understand the commercial viability by H1 of next year. A successful outcome has the potential to extend life of the asset and elements of its infrastructure by several years. Moving now to slide 12. In our July trading statement, we announced a decision to replace the CALM buoy at Stag rather than repair the existing one following the damage caused by Cyclone Narelle in late March. Over the past month, we have made significant progress in both our due diligence of the proposed replacement CALM buoy, an image of which you can see on this slide, and the commercial agreements required to purchase it.

Speaker #2: A successful outcome has the potential to extend the life of the asset and LM elements of its infrastructure by several years. Moving now to slide 12, in our July trading statement, we announced a decision to replace the convoy at STAG rather than repair the existing one, following the damage caused by Cyclone Nerelle in late March.

Speaker #2: Over the past month, we've made significant progress in both our due diligence of the proposed replacement convoy—an image of which you can see on this slide.

Speaker #2: And the commercial agreements required to purchase it. We have now secured the buoy and are completing final due diligence inspections. Deployment of the replacement convoy to the field is currently targeted for the first quarter of next year, with the resumption of production in the second quarter, although the team continues to explore ways to accelerate further if possible.

T. Mitch Little: We have now secured the buoy and are completing final due diligence inspections. Deployment of the replacement CALM buoy to the field is currently targeted for Q1 of next year, with a resumption of production in Q2. Although the team continues to explore ways to accelerate further if possible. We hold comprehensive insurance coverage against both CALM buoy replacement costs and business interruption while Stag is offline. The total cover for the CALM buoy retrieval and replacement activity is around US$30 million, which, based on current estimates, should provide sufficient cover for those activities. Our business interruption insurance, which covers a meaningful portion of Stag's normal operating costs, is available through May 2027, with the field expected back online around the same time. As Andrew mentioned, during the quarter, we expect initial insurance payments of just over $11 million, perhaps as soon as within a week.

Mitch Little: We have now secured the buoy and are completing final due diligence inspections. Deployment of the replacement CALM buoy to the field is currently targeted for Q1 of next year, with a resumption of production in Q2. Although the team continues to explore ways to accelerate further if possible. We hold comprehensive insurance coverage against both CALM buoy replacement costs and business interruption while Stag is offline. The total cover for the CALM buoy retrieval and replacement activity is around US$30 million, which, based on current estimates, should provide sufficient cover for those activities. Our business interruption insurance, which covers a meaningful portion of Stag's normal operating costs, is available through May 2027, with the field expected back online around the same time. As Andrew mentioned, during the quarter, we expect initial insurance payments of just over $11 million, perhaps as soon as within a week.

Speaker #2: We hold comprehensive insurance coverage against both convoy replacement costs and business interruption while STAG is offline. The total cover for the convoy retrieval and replacement activity is around US$30 million, which, based on current estimates, should provide sufficient cover.

Speaker #2: For those activities, our business interruption insurance, which covers a meaningful portion of STAG's normal operating costs, is available through May 2027, with the field expected back online around the same time.

Speaker #2: As Andrew mentioned, during the quarter we'll expect initial insurance payments of just over $11 million, perhaps as soon as within a week. And that will cover both our share of the costs—well, all the costs incurred on the initial retrieval attempts, along with a portion of business interruption. Additional claim reimbursements are expected through the back half of the year and into 2027.

T. Mitch Little: That will cover both a share of the cost, all the costs incurred on the initial retrieval attempts, along with a portion of business interruption experience. Additional claim reimbursements are expected through the back half of the year and into 2027. Lastly, with regard to production restart activities at the Woodside Energy-operated CWLH field, all regulatory approvals have been obtained and the dive program to complete the riser's J tube repairs has commenced. Production restart is still expected around the end of Q3. Prior to commencing the campaign, the operator completed an onshore trial to rehearse and significantly de-risk the offshore repair procedures. Once repairs are complete, the Okha FPSO will be reconnected and normal startup sequences of safety, production, and gas lift systems will be implemented over a period of days.

Mitch Little: That will cover both a share of the cost, all the costs incurred on the initial retrieval attempts, along with a portion of business interruption experience. Additional claim reimbursements are expected through the back half of the year and into 2027. Lastly, with regard to production restart activities at the Woodside Energy-operated CWLH field, all regulatory approvals have been obtained and the dive program to complete the riser's J tube repairs has commenced. Production restart is still expected around the end of Q3. Prior to commencing the campaign, the operator completed an onshore trial to rehearse and significantly de-risk the offshore repair procedures. Once repairs are complete, the Okha FPSO will be reconnected and normal startup sequences of safety, production, and gas lift systems will be implemented over a period of days.

Speaker #2: Lastly, with regard to production restart activities at the Woodside-operated CWH field, all regulatory approvals have been obtained, and the DIVE program to complete the Riser J-tube repairs has commenced.

Speaker #2: Production restart is still expected around the end of Q3. Prior to commencing the campaign, the operator completed an onshore trial to rehearse and significantly de-risk the offshore repair procedures.

Speaker #2: Once repairs are complete, the OCA FPSO will be reconnected, and normal startup sequences of safety, production, and gas lift systems will be implemented over a period of days.

Speaker #2: On slide 13, we reiterate the guidance from the trading statement issued in July, where our production range was updated to reflect the CWH FPSO reconnection delays and the STAG cyclone-related shut-in.

T. Mitch Little: On slide 13, we reiterate the guidance from the trading statement issued in July, where our production range was updated to reflect the CWLH FPSO reconnection delays and Stag Cyclone-related shut-in. Guidance on total production costs, excluding non-cash impacts, is unchanged and is expected to be in the upper end of the range, primarily as a result of FX moves, especially the Australian dollar versus US dollar movements, and increased fuel and royalty costs associated with higher oil prices that have resulted from the Strait of Hormuz conflict. CapEx guidance is also unchanged, notably so given the original guidance did not include the third contingent well in Malaysia. Consistent with our initial guidance in February, our CapEx guidance does not yet include Vietnam development CapEx. Only the relatively minor amounts of capitalized G&A costs incurred prior to FID. Finally, our 2025 through 2027 unlevered free cash flow guidance is maintained.

Mitch Little: On slide 13, we reiterate the guidance from the trading statement issued in July, where our production range was updated to reflect the CWLH FPSO reconnection delays and Stag Cyclone-related shut-in. Guidance on total production costs, excluding non-cash impacts, is unchanged and is expected to be in the upper end of the range, primarily as a result of FX moves, especially the Australian dollar versus US dollar movements, and increased fuel and royalty costs associated with higher oil prices that have resulted from the Strait of Hormuz conflict. CapEx guidance is also unchanged, notably so given the original guidance did not include the third contingent well in Malaysia. Consistent with our initial guidance in February, our CapEx guidance does not yet include Vietnam development CapEx. Only the relatively minor amounts of capitalized G&A costs incurred prior to FID. Finally, our 2025 through 2027 unlevered free cash flow guidance is maintained.

Speaker #2: Guidance on total production costs, excluding non-cash impacts, is unchanged and is expected to be at the upper end of the range, primarily as a result of FX moves—especially the Australian dollar versus US dollar movements—and increased fuel and royalty costs associated with higher oil prices that have resulted from the Strait of Hormuz conflict.

Speaker #2: Capex guidance is also unchanged, notably so given the original guidance did not include the third contingent well in Malaysia. Consistent with our initial guidance in February, our capex guidance does not yet include Vietnam development capex—only the relatively minor amounts of capitalized G&A costs incurred prior to FID.

Speaker #2: Finally, our 2025 through 2027 unlevered free cash flow guidance is maintained. As we did this year, this guidance range will be formally reviewed in early 2027 as part of the group's annual planning cycle and reserves evaluation.

T. Mitch Little: As we did this year, this guidance range will be formally reviewed in early 2027 as part of the group's annual planning cycle and reserves evaluation. I also wanted to take the opportunity to reiterate that despite some externally generated and temporary operational headwinds, the group has maintained positive momentum, already delivering on many of our strategic objectives for 2026. A sign of the renewed focus and drive in the business in recent years under the new management team. We continue to prudently evaluate business development opportunities in the region, seeking opportunities where we can leverage our experience and diverse platform into creating value from existing assets and gas developments that pass our discipline acquisition hurdles. I'd like to wrap up on slide 14. Jadestone offers a compelling opportunity to gain exposure to the dynamic Asia-Pacific regional economic growth story.

Mitch Little: As we did this year, this guidance range will be formally reviewed in early 2027 as part of the group's annual planning cycle and reserves evaluation. I also wanted to take the opportunity to reiterate that despite some externally generated and temporary operational headwinds, the group has maintained positive momentum, already delivering on many of our strategic objectives for 2026. A sign of the renewed focus and drive in the business in recent years under the new management team. We continue to prudently evaluate business development opportunities in the region, seeking opportunities where we can leverage our experience and diverse platform into creating value from existing assets and gas developments that pass our discipline acquisition hurdles. I'd like to wrap up on slide 14. Jadestone offers a compelling opportunity to gain exposure to the dynamic Asia-Pacific regional economic growth story.

Speaker #2: I also wanted to take the opportunity to reiterate that, despite some externally generated and temporary operational headwinds, the group has maintained positive momentum, already delivering on many of our strategic objectives for 2026.

Speaker #2: This is a sign of the renewed focus and drive in the business in recent years under the new management team. We continue to prudently evaluate business development opportunities in the region, seeking situations where we can leverage our experience and diverse platform to create value from existing assets and gas developments that pass our disciplined acquisition hurdles.

Speaker #2: I'd like to wrap up on slide 14. Jadestone offers a compelling opportunity to gain exposure to the dynamic Asia-Pacific regional economic growth story. We expect growing economies to underpin energy demand in the region, particularly gas, with Jadestone being the only independent E&P which operates across Indonesia, Malaysia, Australia, and Vietnam.

T. Mitch Little: We expect growing economies to underpin energy demand in the region, particularly gas, with Jadestone being the only independent E&P which operates across Indonesia, Malaysia, Australia, and Vietnam. This platform uniquely positions Jadestone to deliver both organic and inorganic growth, and we remain confident that we can do so for the benefit of all stakeholders. With that, I thank you for your time today. Operator, I'll now turn it back to you for question and answer session.

Mitch Little: We expect growing economies to underpin energy demand in the region, particularly gas, with Jadestone being the only independent E&P which operates across Indonesia, Malaysia, Australia, and Vietnam. This platform uniquely positions Jadestone to deliver both organic and inorganic growth, and we remain confident that we can do so for the benefit of all stakeholders. With that, I thank you for your time today. Operator, I'll now turn it back to you for question and answer session.

Speaker #2: This platform uniquely positions Jadestone to deliver both organic and inorganic growth, and we remain confident that we can do so for the benefit of all stakeholders.

Speaker #2: With that, I thank you for your time today. Operator, I'll now turn it back to you for the question and answer session.

Speaker #1: Thank you very much. To ask a question, please press star, followed by one, on your telephone keypad now. To change your mind, please press star, followed by two.

Operator: Thank you very much. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. Our first question comes from James Carmichael from Berenberg. Your line is open, James. Please go ahead.

Speaker #1: When preparing to ask your question, please ensure your device is unmuted locally. Our first question comes from James Carmichael from Berenberg. Your line is open, James.

Speaker #1: Please go ahead.

Speaker #3: Hi. Morning, guys. Just to.

James Carmichael: Hi. Morning, guys.

T. Mitch Little: Hi, James.

Mitch Little: Hi, James.

Speaker #4: Hi, James.

James Carmichael: Firstly on net debt, I guess, obviously, cash flow performance was really strong in H1. Just wondering how you see that progressing through the rest of the year, giving your commentary on potential working capital unwind and, I guess, any questions around lifting schedules. Just would help to get a bit of color on that. Then looking at Vietnam, it looks like that's edging forwards with the FPSO approval and recommended platform and pipeline contractors. Just wondering, I guess, what are the next steps ultimately between here and the farm-out and getting to FID? Attached to that, I suppose you've referenced that the CapEx guidance includes limited pre-development spend in Vietnam. Just wondering if there's anything you can say around what spend might be needed there if you need to keep the project on track or if you get to that FID stage before farm-out.

Speaker #3: Firstly, on net debt, I guess, obviously cash flow performance was really strong in the first half. Just wondering how you see that progressing through the rest of the year, given your sort of commentary on potential working capital unwind, and I guess any questions around lifting schedules.

Speaker #3: Just to help get a bit of color on that. And then, looking at Vietnam, it looks like that's sort of edging forward with the FPSO approval and the recommended platform and pipeline.

Speaker #3: Contractors, just wondering, I guess, what are the next steps ultimately between here and the farmhouse and getting to FID? And then, attached to that, I suppose, you referenced that the capex guidance includes limited pre-development spend in Vietnam.

Speaker #3: Just wondering if there's anything you can say around what spend might be needed there if you need to keep the project on track, or if you get to that FID stage before Farmhouse.

Speaker #4: Correct. Andrew, do you want to take that first question, and I'll jump in.

T. Mitch Little: Great. Andrew, you want to take that first question and I'll jump in?

Mitch Little: Great. Andrew, you want to take that first question and I'll jump in?

Andrew Fairclough: Yeah. James, hi there. I think you'll probably get used to me saying, look, we don't provide guidance towards our net debt forecast towards the end of the year, of course. But I think the element here is really is very dependent on CWLH's reconnection. Clearly, there won't be a lifting in the back end of this year. It'll be moved into next year. So expect the overlift will continue from that perspective. It's really, I think, through the back half of the year, as was flagged, we won't have the CWLH lifting come in the back end of the year. We'll have Montara cycle through and clearly Penara while we're still maintaining operating costs. So I think directionally that hopefully gives you a sense of travel, certainly until we get those sort of Cossack liftings back into play next year.

Speaker #2: Yeah. James either. I think you probably get used to it from used to me sort of saying, "Look, we don't sort of provide guidance towards sort of our net debt forecast towards the end of the year, of course." But I mean, I think the element here is really it's very dependent on well, CWH reconnection clearly, there's there won't be a lifting in the back end of this year.

Speaker #2: It'll be moved into next year, so expect the overlift will continue from that perspective. And it's really sort of, I think, through the back half of the year, as I sort of flagged, we don't have the CWH lifting coming in the back end of the year.

Speaker #2: We'll have them on TARAs cycle through and clearly pen now, while we're still maintaining operating costs. So I think, sort of directionally, that hopefully gives you a sense of travel, certainly until we get those sort of COSAC liftings back into play next year.

T. Mitch Little: Yeah.

Mitch Little: Yeah.

Speaker #2: Thanks.

Andrew Fairclough: Thanks.

Speaker #3: So, let me jump in on the Vietnam project, James. There are just a few critical steps left, and the Farm-Out process is moving forward, so I'll touch on that as well.

T. Mitch Little: So let me jump in on Vietnam project, James. Just a few critical steps left and the farm-out process is moving forward, so I will touch on that as well. But really from a project sanction standpoint, the last sort of firm requirements or physical requirements, if you will, are PetroVietnam approval of the field infrastructure contract award. Don't see any real challenges with that. It has been well socialized and good clarifications answered. I think that is coming in the near term. Hammering out just kind of the last few details around the project finance and security structure is in latter stages and nearly complete. The farm-out is going quite well. We have had a lot of interest. We shortlisted down to a small set of select counterparties that have good technical capabilities, strong balance sheets. We have got some good competitive tension, and healthy dialogue with those last few.

Mitch Little: So let me jump in on Vietnam project, James. Just a few critical steps left and the farm-out process is moving forward, so I will touch on that as well. But really from a project sanction standpoint, the last sort of firm requirements or physical requirements, if you will, are PetroVietnam approval of the field infrastructure contract award. Don't see any real challenges with that. It has been well socialized and good clarifications answered. I think that is coming in the near term. Hammering out just kind of the last few details around the project finance and security structure is in latter stages and nearly complete. The farm-out is going quite well. We have had a lot of interest. We shortlisted down to a small set of select counterparties that have good technical capabilities, strong balance sheets. We have got some good competitive tension, and healthy dialogue with those last few.

Speaker #3: But really, from a project sanctions standpoint, the last sort of firm requirements, or physical requirements, if you will, are PetroVietnam approval of the field infrastructure contract award.

Speaker #3: Don't see any real challenges with that. It's been well socialized and good clarifications answered. I think that's coming in the near term. Hammering out just kind of the last few details around the project finance and security structure has in ladder stages and nearly complete.

Speaker #3: The farmhouse is going quite well. We've had a lot of interest. We've shortlisted down to a small set of select counterparties that have good technical capabilities and strong balance sheets.

Speaker #3: We've got some good competitive tension and healthy dialogue with those last few. That will likely, once we get through the negotiations, take a bit of time to do the paperwork, of course—to paper up the joint operating agreement and finalize the farmhouse agreement.

T. Mitch Little: Once we get through the negotiations, it will take a bit of time to do the paperwork, of course, to paper up the joint operating agreement and finalize the farm-out agreement. So best efforts, we will sync those two together, but there is a possibility that we secure that, get it finalized, and move through FID to keep the project on track. Optimizing the schedule to the point we can with the final closing of that, if you will, a bit later, because they are going to need to get an investment certification approval from the host government anyway. So the finalization of that probably will lag just behind project sanction a bit, but the deal should be done before then or about the same time.

Mitch Little: Once we get through the negotiations, it will take a bit of time to do the paperwork, of course, to paper up the joint operating agreement and finalize the farm-out agreement. So best efforts, we will sync those two together, but there is a possibility that we secure that, get it finalized, and move through FID to keep the project on track. Optimizing the schedule to the point we can with the final closing of that, if you will, a bit later, because they are going to need to get an investment certification approval from the host government anyway. So the finalization of that probably will lag just behind project sanction a bit, but the deal should be done before then or about the same time.

Speaker #3: So, best efforts will sync those two together. But there's a possibility that we secure that, get it finalized, and move through FID to keep the project on track and optimize the schedule as much as we can.

Speaker #3: With the final closing of that, if you will, a bit later, because they're going to need to get an investment certification approval from the host government anyway.

Speaker #3: So, the finalization of that will probably lag just behind project sanction a bit, but the deal should be done before then or at about the same time.

Speaker #3: Capital requirements that could occur, depending on timing, are probably, let's say, $10 million plus—maybe a bit more if we achieve the ideal timing on the sanction.

T. Mitch Little: Capital requirements that could occur, depending on timing, probably on the order of, let us say, USD 10 million plus, maybe a bit more if we achieve the ideal timing on the sanction. Then that will be the conclusion of the farm-out. The equity share that we farm out would be reimbursed next year.

Mitch Little: Capital requirements that could occur, depending on timing, probably on the order of, let us say, USD 10 million plus, maybe a bit more if we achieve the ideal timing on the sanction. Then that will be the conclusion of the farm-out. The equity share that we farm out would be reimbursed next year.

Speaker #3: And then that’ll be at the conclusion of the farm-out; the equity share that we farm out would be reimbursed next year.

Speaker #2: Yeah. Yeah. Very clear. Very helpful. Thanks, guys.

James Carmichael: Yeah. No, very clear. Very helpful. Thanks, guys.

Speaker #1: Our next question comes from David Round at Stifel. Your line is open, David. Please go ahead.

Operator: Our next question comes from David Round from Stifel. Your line is open, David. Please go ahead.

David Round: Thank you. Morning, guys.

Speaker #3: Thank you. Morning, guys. Let me ask—okay, firstly, just on Malaysia—obviously, some really good results there. Interested where you are with the extension. What do you think needs to happen there?

T. Mitch Little: Hey, David.

Mitch Little: Hey, David.

David Round: Hey. Firstly, just on Malaysia, obviously some really good results there. Interested where you are with the extension. What do you think needs to happen there? Does the drilling result or the drilling results change anything? I mean, does it change the terms? Does it change the likelihood of getting that extension? And actually, maybe I will ask one on Stag as well, just in terms of the installation, conscious of the timeline there, are there any weather considerations we need to be mindful of? Are there any weather systems we need to avoid and hope are not as bad as they can be at that time of year? Can I just check that CALM buoy, it is just a like for like replacement?

Speaker #3: Do the drilling results change anything? I mean, does it change the terms? Does it change the likelihood of getting that extension?

Speaker #3: And actually, maybe I'll ask one on SAG as well. Just in terms of the installation, conscious of the timeline there, are there any weather considerations we need to be mindful of?

Speaker #3: Are there any sort of weather systems we need to avoid, and hope sort of aren't as bad as they can be at that time of year?

Speaker #3: Can I just check that, Calum? It's just a like-for-like replacement.

T. Mitch Little: Yeah, I'll try to touch on all those, David, but feel free to remind me if I missed one. On PM323, let's start with that. The results of this program, and I didn't spend a lot of time on it. I don't want to get all technical on the call, but they were complicated wells. The drilling design was different than any well we'd ever drilled in the PM32 license before because of the extended reach of them. So we had to drop down a hole size and do some other more challenging drilling operations. So our ability to execute and deliver those kind of results only bolsters our case for the extension. But we're in the final stages. The terms are largely agreed. We're working out a few details, but there's additional development potential in the field that we've done fairly detailed work.

Mitch Little: Yeah, I'll try to touch on all those, David, but feel free to remind me if I missed one. On PM323, let's start with that. The results of this program, and I didn't spend a lot of time on it. I don't want to get all technical on the call, but they were complicated wells. The drilling design was different than any well we'd ever drilled in the PM32 license before because of the extended reach of them. So we had to drop down a hole size and do some other more challenging drilling operations. So our ability to execute and deliver those kind of results only bolsters our case for the extension. But we're in the final stages. The terms are largely agreed. We're working out a few details, but there's additional development potential in the field that we've done fairly detailed work.

Speaker #4: Yeah, I'll try to touch on all those, David, but feel free to remind me if I miss one. On PM323, let's start with that.

Speaker #4: Look, the results of this program—and I didn't spend a lot of time on it—I don't want to get all technical on the call, but they were complicated wells.

Speaker #4: And the drilling design was different than any well we’d ever drilled in the PM32 license before, because of the extended reach of them. So we had to drop down a hole size and do some other, more challenging, drilling operations.

Speaker #4: So our ability to execute and deliver those kinds of results only bolsters our case for the extension. But we're in the final stages—the terms are largely agreed.

Speaker #4: We're working out a few details, but there's additional development potential in the field that we've done fairly detailed work on. We still need to finalize it to fully mature it, but it could be some additional infill drilling.

T. Mitch Little: We still need to finalize it to fully mature it, but could be some additional infill drilling in there, certainly associated and, in some cases, non-associated gas resources there that can be developed under the license extension and with energy security, and just growing energy demands. Of course, the regulator is constructive and helpful in making sure every molecule is captured. When you demonstrate the ability to execute and create value that others left behind like we have, I'd say that bodes very well. So few details to work out. The terms are largely agreed. I'm still bullish and still hoping we get that across the line in the very near term, but definitely optimistic that we're going to get it done, and confident.

Mitch Little: We still need to finalize it to fully mature it, but could be some additional infill drilling in there, certainly associated and, in some cases, non-associated gas resources there that can be developed under the license extension and with energy security, and just growing energy demands. Of course, the regulator is constructive and helpful in making sure every molecule is captured. When you demonstrate the ability to execute and create value that others left behind like we have, I'd say that bodes very well. So few details to work out. The terms are largely agreed. I'm still bullish and still hoping we get that across the line in the very near term, but definitely optimistic that we're going to get it done, and confident.

Speaker #4: And there's certainly associated, and in some cases non-associated, gas resources there that can be developed under the license extension. And with energy security and just growing energy demands, of course, the regulator is constructive and helpful in making sure every molecule is captured.

Speaker #4: And when you demonstrate the ability to execute and create value that others left behind, like we have, I'd say that bodes very well. So, a few details to work out—the terms are largely agreed.

Speaker #4: And I'm still bullish and still hoping we get that across the line in the very near term, but definitely optimistic that we're going to get it done.

Speaker #4: And confident. On STAG, of course, we will have to incorporate that into our planning during critical operations, which are not that long-lived, but there will be periods of time where weather will be more impactful.

T. Mitch Little: On Stag, of course, we will have to incorporate into our planning. During critical operations, which are not that long-lived, but there'll be periods of time where weather will be more impactful. Those aren't events that typically last for more than a few days, and there's good warning on them. So it's not like we're going to be sitting there. It's not zero risk, but it's not like we're going to be sitting there ready to deploy the Kombu and be isolated for three weeks. We'll plan around that. We know the weather patterns. Of course, you can get some unexpected things, and we'll have to build that into our planning. It's also why the team continues to look at are there any ways we can accelerate it, and take advantage of the most ideal weather windows.

Mitch Little: On Stag, of course, we will have to incorporate into our planning. During critical operations, which are not that long-lived, but there'll be periods of time where weather will be more impactful. Those aren't events that typically last for more than a few days, and there's good warning on them. So it's not like we're going to be sitting there. It's not zero risk, but it's not like we're going to be sitting there ready to deploy the Kombu and be isolated for three weeks. We'll plan around that. We know the weather patterns. Of course, you can get some unexpected things, and we'll have to build that into our planning. It's also why the team continues to look at are there any ways we can accelerate it, and take advantage of the most ideal weather windows.

Speaker #4: Those aren't events that typically last for more than a few days, and there's good warning on them. So it's not like we're going to be sitting there—it's not zero risk, but it's not like we're going to be sitting there ready to deploy the combo and be isolated for three weeks.

Speaker #4: We'll plan around that. We know the weather patterns. Of course, you can get some unexpected things, and we'll have to build that into our planning.

Speaker #4: And it's also why the team continues to look at whether there are any ways we can accelerate it, and take advantage of the most ideal weather windows.

Speaker #4: So, it's something we're definitely conscious of, but we can plan and work around it with pretty minimal risk.

T. Mitch Little: Something we're definitely conscious of, but we can plan and work around it with pretty minimal risk.

Mitch Little: Something we're definitely conscious of, but we can plan and work around it with pretty minimal risk.

Speaker #3: Okay, just a quick follow-up, if I can. The Pootery cluster—I mean, we haven't heard about that in a little while. Is that connected at all to the license extension at 323?

David Round: Okay. Just a quick follow-up if I can. The Puteri Cluster, we haven't heard about that in a little while. Is that connected at all to the license extension at PM323?

Speaker #4: No. No, it's not. It's a separate license, and we continue to work through what looks to be a good option for the redevelopment. But when we get more clarity on that, we'll share more information on it.

T. Mitch Little: No, it's not. It's a separate license, and we continue to work through what looks to be a good option for the redevelopment. When we get more clarity on that, we'll share more information on it. They're not related at all, no, to answer your question.

Mitch Little: No, it's not. It's a separate license, and we continue to work through what looks to be a good option for the redevelopment. When we get more clarity on that, we'll share more information on it. They're not related at all, no, to answer your question.

Speaker #4: But they're not related at all—no, to answer your question.

Speaker #3: Okay. Great. Thank you.

David Round: Okay, great. Thank you.

Speaker #4: Yeah.

T. Mitch Little: Yeah.

Mitch Little: Yeah.

Speaker #1: Our next question comes from Anish Kapadia from Hannam Partners. Your line is open. Please go ahead.

Operator: Our next question comes from Anish Kapadia from Panmure Gordon. Your line is open. Please go ahead.

Speaker #4: Morning, Anish.

T. Mitch Little: Morning, Anish.

Mitch Little: Morning, Anish.

Speaker #5: Morning, guys. Yeah, I just had another question on Malaysia after the strong results today. I was just wondering if there's any update on PM428 in terms of your plans over there, and any updates on your drilling drop decision.

Anish Kapadia: Morning, guys. I had just another question on Malaysia after the strong results today. I was just wondering if there's any updates on PM-428 in terms of your plans over there and any updates on your drill or drop decision. Then second one, just given what we're seeing in terms of the events in the Middle East at the moment, the very strong gas prices you're seeing as well, I suppose kind of the strategic premium that's being placed on Asian gas. Obviously, you've got Vietnam, but Montara, the gas resource over there seems to be getting more interesting, more valuable. It seems like you've been making some progress. Can you give a bit more detail in terms of what you've seen so far and next steps on that? Thank you.

Speaker #5: And then the second one, just given what we're seeing in terms of the events in the Middle East at the moment—the very strong gas prices you're seeing as well.

Speaker #5: I suppose, kind of, the strategic premium that's being placed on Asian gas—obviously you've got Vietnam, but Montara, the gas resource over there, seems to be getting more interesting, more valuable.

Speaker #5: It seems like you’ve been making some progress. Can you give a bit more detail in terms of what you’ve seen so far, and next steps on that?

Speaker #5: Thank you.

Speaker #4: Sure, yeah. PM428 is pretty straightforward. I can't remember the exact date, but sometime in Q4 is when we hit that decision point. The subsurface team is wrapping up their work.

T. Mitch Little: Sure. PM-428 is pretty straightforward. I cannot remember the exact date, but sometime in Q4 is when we hit that decision point. The subsurface team is wrapping up their work. We're going to have a review within the next week on that, and there will be obviously, business case, business value proposition associated with that if the technical prospectivity looks good. But the short answer is we will have the information we need to make a decision within the deadline. If we decide to drop it, there's no consequences to that. From recollection, Andrew, you can correct me if I am misremembering that, but I am pretty sure that's the case. No follow-on payments or commitments. Obviously, if we decide to drill it would be on the back of we think the technical and commercial prospectivity is exciting enough to do that.

Mitch Little: Sure. PM-428 is pretty straightforward. I cannot remember the exact date, but sometime in Q4 is when we hit that decision point. The subsurface team is wrapping up their work. We're going to have a review within the next week on that, and there will be obviously, business case, business value proposition associated with that if the technical prospectivity looks good. But the short answer is we will have the information we need to make a decision within the deadline. If we decide to drop it, there's no consequences to that. From recollection, Andrew, you can correct me if I am misremembering that, but I am pretty sure that's the case. No follow-on payments or commitments. Obviously, if we decide to drill it would be on the back of we think the technical and commercial prospectivity is exciting enough to do that.

Speaker #4: We're going to have a review within the next week on that, and there will obviously be a business case and business value proposition associated with that if the technical prospectivity looks good.

Speaker #4: But the short answer is we'll have the information we need to make a decision within the deadline. If we decide to drop it, there are no consequences to that, from recollection.

Speaker #4: Andrew, you can correct me if I'm misremembering that, but I'm pretty sure that's the case. No follow-on payments or commitments. And obviously, if we decide to drill it, it would be on the back of—we think the technical and commercial prospectivity is exciting enough to do that.

Speaker #4: And I believe it would most likely be a 2028 activity. So that's 428, unless Andrew wants to correct me. I'm pretty sure that's right.

T. Mitch Little: I believe it would be in most likely a 2028 activity. So that's 428, unless Andrew wants to correct me. I am pretty sure that's-

Mitch Little: I believe it would be in most likely a 2028 activity. So that's 428, unless Andrew wants to correct me. I am pretty sure that's-

Speaker #1: No, I think that's right. I think that's right.

Andrew Fairclough: No, I think that's right.

T. Mitch Little: Yeah. Okay. On Montara, yeah. Look, we've got a ways to go, but it is maturing and moving from concept to appraisal phase. There's a natural progression where we'll do more detailed engineering, working with vendors who have expertise in the area of floating LNG, which we're still looking at multiple options, which would include tying in to some of the existing infrastructure out there. But having an option that we control our own destiny, so to speak, makes a lot of sense. We're not subject to the timing of other ullage, which may or may not fit with the timing of when we need it. There's a sizable resource there. The 800 BCF gas in place is discovered. That's not exploration resource. That's drilled and discovered either in the Montara field or in a few accumulations around it. It is a significant resource.

Mitch Little: Yeah. Okay. On Montara, yeah. Look, we've got a ways to go, but it is maturing and moving from concept to appraisal phase. There's a natural progression where we'll do more detailed engineering, working with vendors who have expertise in the area of floating LNG, which we're still looking at multiple options, which would include tying in to some of the existing infrastructure out there. But having an option that we control our own destiny, so to speak, makes a lot of sense. We're not subject to the timing of other ullage, which may or may not fit with the timing of when we need it. There's a sizable resource there. The 800 BCF gas in place is discovered. That's not exploration resource. That's drilled and discovered either in the Montara field or in a few accumulations around it. It is a significant resource.

Speaker #4: Yeah, okay. On Montara, yeah, look, we've got a ways to go, but it is maturing. And moving from concept to appraisal phase, there's a natural progression where we'll do more detailed engineering, working with vendors who have expertise in the area of floating LNG. We're still looking at multiple options, which would include tying into some of the existing infrastructure out there.

Speaker #4: But having an option where we control our own destiny, so to speak, makes a lot of sense. We're not subject to the timing of other outages, which may or may not fit with the timing of when we need it.

Speaker #4: But there's a sizable resource there. The 800 Bcf gas in place has been discovered. That's not exploration resource; that's discovered—drilled and discovered either in the Montara field or in a few accumulations around it.

Speaker #4: So it is a significant resource. But we've got to go through the detailed technical work, see what we can do to incorporate any remaining black oil production as part of that commercialization process.

T. Mitch Little: We've got to go through the detailed technical work, see what we can do to incorporate any remaining black oil production as part of that commercialization process, and take a hard look at market factors. As we all know, currently quite disrupted. We also know there's going to continue to be strong demand in Asia, so there's good price support in the region anyway. UK, a whole different world, the gas price environment they found themselves in. We'll have to take a deeper market view along with the technical review, but happy and encouraged enough, and like the idea of if this does look attractive commercially, it's something we can drive. We're not reliant on the interest and availability of other third parties from an ullage standpoint and the commercial leverage that that brings with it.

Mitch Little: We've got to go through the detailed technical work, see what we can do to incorporate any remaining black oil production as part of that commercialization process, and take a hard look at market factors. As we all know, currently quite disrupted. We also know there's going to continue to be strong demand in Asia, so there's good price support in the region anyway. UK, a whole different world, the gas price environment they found themselves in. We'll have to take a deeper market view along with the technical review, but happy and encouraged enough, and like the idea of if this does look attractive commercially, it's something we can drive. We're not reliant on the interest and availability of other third parties from an ullage standpoint and the commercial leverage that that brings with it.

Speaker #4: And take a hard look at market factors. As we all know, currently, it's quite disrupted, but we also know there's going to continue to be strong demand in Asia.

Speaker #4: So there's good price support in the region anyway. The UK is a whole different world—the gas price environment that they found themselves in. So we'll have to take a deeper market view, along with the technical review.

Speaker #4: But happy and encouraged enough, and I like the idea that if this does look attractive commercially, it's something we can drive. We're not reliant on the interest and availability of other third parties from an offtake standpoint, and the commercial leverage that that brings with it.

Speaker #4: So, we'll keep it moving, and hopefully get to a good outcome during the first half of next year. We'll see.

T. Mitch Little: We'll keep it moving, and hopefully, get to a good outcome during the H1 of next year. We'll see.

Mitch Little: We'll keep it moving, and hopefully, get to a good outcome during the H1 of next year. We'll see.

Speaker #5: Thanks for that update, Mitch.

Anish Kapadia: Thanks for that update, Mitch.

Speaker #4: Sure. Thank you, Anish.

T. Mitch Little: Sure. Thank you, Anish.

Mitch Little: Sure. Thank you, Anish.

Speaker #1: As a reminder, for the 12th question, please press star followed by one. Our next question comes from Sam Wahab from Peel Hunt. Your line is open, Sam.

Operator: As a reminder, to ask a question, please press star followed by 1. Our next question comes from Sam Wahab from Peel Hunt. Your line is open, Sam. Please go ahead.

Speaker #1: Please go ahead.

Sam Wahab: Well, morning guys. Well done again.

Speaker #3: Well, morning, guys. Hold on, again, from today's results. Just a couple of questions from me. First is, I mean, could you provide a bridge from the current guidance of around 16,000 to 18,000 BOE a day?

T. Mitch Little: Good morning.

Mitch Little: Good morning.

T. Mitch Little: For today's results, just a couple of questions from me. First is, could you provide a bridge from the current guidance of around 16,000 to 18,000 BOEs a day of what production could look like next year? Assuming obviously that CWLH returns shortly, Stag returns in the middle of next year, and PM323 meets existing performance. Second question is around the Stag shutdown. Can you quantify the economic or the expected economic impact through that and how much effect to regain through that insurance? I know you've accrued USD 12 million to date, so assuming Stag returns Q2 next year, what you are expecting to be the total economic impact? Thanks.

Sam Wahab: For today's results, just a couple of questions from me. First is, could you provide a bridge from the current guidance of around 16,000 to 18,000 BOEs a day of what production could look like next year? Assuming obviously that CWLH returns shortly, Stag returns in the middle of next year, and PM323 meets existing performance. Second question is around the Stag shutdown. Can you quantify the economic or the expected economic impact through that and how much effect to regain through that insurance? I know you've accrued USD 12 million to date, so assuming Stag returns Q2 next year, what you are expecting to be the total economic impact? Thanks.

Speaker #3: What could production look like next year? Assuming, obviously, that CWLH returns shortly, STAG returns in the middle of next year, and PM323 maintains its existing performance.

Speaker #3: And second question is around the Stag shutdown. Can you sort of quantify the economic, or the expected economic, impacts through that and how much effect you expect to regain through insurance?

Speaker #3: I know you've accrued $12 million to date. So, assuming STAG returns in Q2 next year, what are you expecting the total economic impact to be?

Speaker #3: Thanks.

Speaker #4: Sure. Andrew, you want to jump in on at least the second question? If you want to take the first one, you can too.

T. Mitch Little: Sure. Andrew, you want to jump in on at least the second question?

Mitch Little: Sure. Andrew, you want to jump in on at least the second question?

Andrew Fairclough: Yeah.

T. Mitch Little: If you wanted to get the first one, you can too.

Mitch Little: If you wanted to get the first one, you can too.

Andrew Fairclough: No, I'll leave the first one to you, Mitch. That's all right. Shall I tell you the, so

Speaker #3: No, I'll leave the first one to you, Mitch. That's all right.

Speaker #5: Johnny, can you do?

T. Mitch Little: Yeah. STAG then, please.

Mitch Little: Yeah. STAG then, please.

Speaker #3: Yeah. So I think, from what we expect at this point in time, it’ll be, just from a cash flow perspective, cash flow neutral when we sort of balance the offset of business interruption against the reduction in operating expenses.

Andrew Fairclough: Yeah. Look, I think, we expect at this point in time to be just from a cash flow perspective, cash flow neutral when we sort of balance in the offset of business interruption against the reduction in operating expenses. I think as we say, our total anticipated property insured recovery value is about $30 million. That essentially comprises about $20 million of replacement value for the CALM buoy. And then we have miscellaneous, another $10 million associated with certain labor and repair and recovery as well. So at this point in time, we expect it to be the cost of recovery and, sorry, of replacement to be covered by our insurance package. And then the sort of the offset of business interruption, reduced operating expenses, we are expecting to be at sort of a neutral position through the period.

Speaker #3: I think as we say, our sort of total anticipated sort of property insured recovery value is about 30 million dollars. That essentially comprises about 20 million dollars of replacement value for the convoy and then we have miscellaneous sort of another 10 million dollars associated with certain labor and repair.

Speaker #3: And recovery as well. So at this point in time, we expect the cost of recovery, or sorry, of replacement, to be covered by our insurance package.

Speaker #3: And then, the offset of business interruption reduced operating expenses. We are expecting to be in a neutral position through the period.

Speaker #3: Great. Thanks.

Sam Wahab: Great, thanks.

Speaker #4: Yeah. And just quickly, Sam, on production—you're just a bit out in front of us. We definitely want to get CWH back up and going, and stabilized; factor that in, get a little bit longer performance on the 323 drilling campaign.

T. Mitch Little: Yeah. Just quickly, Sam, on production, you are just a bit out in front of us. We definitely want to get CWLH back up and going and stabilized, factor that in, get a little bit longer performance on the PM323 drilling campaign. They are long horizontal wells, so they will naturally decline faster than a vertical well in a big tank with a big thick hydrocarbon column. So let us get that behind us and also our budget details worked out in terms of other capital allocation and the impacts of that on production before I can really give you any clarity. You are just a bit out ahead in front of us on that.

Mitch Little: Yeah. Just quickly, Sam, on production, you are just a bit out in front of us. We definitely want to get CWLH back up and going and stabilized, factor that in, get a little bit longer performance on the PM323 drilling campaign. They are long horizontal wells, so they will naturally decline faster than a vertical well in a big tank with a big thick hydrocarbon column. So let us get that behind us and also our budget details worked out in terms of other capital allocation and the impacts of that on production before I can really give you any clarity. You are just a bit out ahead in front of us on that.

Speaker #4: They are long horizontal wells, so they'll naturally decline faster than a vertical well in a big tank with a thick hydrocarbon column. So, let us get that behind us and also get our budget details worked out in terms of other capital allocation and the impacts of that on production before I can really give you any clarity.

Speaker #4: You're just a bit out ahead in front of us on that.

Speaker #3: Yeah, no—no problem. I expected that. Brilliant, thanks very much for that.

Sam Wahab: Yeah. No, no problem. I expected that. Brilliant. Thanks very much for that.

Speaker #4: Yeah. Cheers. Thanks, Sam.

T. Mitch Little: Yeah, cheers. Thanks, Sam.

Mitch Little: Yeah, cheers. Thanks, Sam.

Speaker #1: Our next question is a follow-up question from James. James, please go ahead. James, your line is open. Please go ahead with your question.

Operator: Our next question is a follow-up question from James Carmichael from Berenberg. Your line is open, James. Please go ahead. James, your line is open. Please go ahead with your question.

Speaker #5: Hi.

James Carmichael: Hi. Sorry, I was on mute there. Thanks for taking the follow-up. It is clear there is lots of organic growth potential in the portfolio. One of the priorities outlined for the year is obviously inorganic growth. I was just wondering, basically, can you sort of describe the types of opportunities that are most advanced or any color on what you think might be achievable on the M&A side this year? Yeah, that is it.

Speaker #3: Sorry, sorry, it was on mute there. And thanks for taking the follow-up. It's clear there's lots of organic growth potential in the portfolio.

Speaker #3: One of the priorities outlined for the year is, obviously, inorganic growth. So, I was just wondering, can you sort of describe the types of opportunities that are most advanced, or provide any color on what you think might be achievable on the M&A side this year?

Speaker #3: Yeah, that's it.

Speaker #4: Sure. Yeah. I mean, it's always sort of episodic, right? It's going to depend on what's on the market, what fits our bill, and so it's always difficult to predict when or how it's going to happen.

T. Mitch Little: Sure. I mean, it is always sort of episodic, right? It is going to depend on what is on the market, what fits our bill, and so it is always difficult to predict when or how it is going to happen. But just reiterating what we are looking for, what we are focused on is, first and foremost, we have to be convinced that we can create value like we have done with the assets we have acquired to date. So that comes from looking for opportunities that have fallen down the priority list, for maybe a larger operator, or their technical skills and understanding of the basins we work in are not as deep as ours, so we can leverage opportunities that they maybe do not see.

Mitch Little: Sure. I mean, it is always sort of episodic, right? It is going to depend on what is on the market, what fits our bill, and so it is always difficult to predict when or how it is going to happen. But just reiterating what we are looking for, what we are focused on is, first and foremost, we have to be convinced that we can create value like we have done with the assets we have acquired to date. So that comes from looking for opportunities that have fallen down the priority list, for maybe a larger operator, or their technical skills and understanding of the basins we work in are not as deep as ours, so we can leverage opportunities that they maybe do not see.

Speaker #4: But just reiterating what we're looking for, what we're focused on—first and foremost, we have to be convinced that we can create value, like we've done with the assets we've acquired to date.

Speaker #4: And so that comes from looking for opportunities that have fallen down the priority list, maybe for a larger operator, or their technical skills and understanding of the basins we work in aren't as deep as ours.

Speaker #4: So we can leverage opportunities that they maybe don't see. So, existing assets or assets near first production certainly screen well, as long as we can apply the reservoir management and operational skills that we've developed across our portfolio in the region to drive further value.

T. Mitch Little: So, existing or assets near first production is certainly screens well, as long as we can apply reservoir management and operational skills that we have developed across our portfolio in the region to drive further value and see a value arbitrage from how the current operator sees it. So that could be anywhere within the region that we already operate. And obviously, with the Akatara project in Indonesia being a DRO, a discovered but undeveloped resource, that is attractive as well, and something that we have proven good competence in, and we are taking the next step with that with Vietnam in the offshore arena. Of course, those resources were discovered by the predecessor company, but nevertheless, they are discovered and undeveloped. So I think we are not wildcat explorers.

Mitch Little: So, existing or assets near first production is certainly screens well, as long as we can apply reservoir management and operational skills that we have developed across our portfolio in the region to drive further value and see a value arbitrage from how the current operator sees it. So that could be anywhere within the region that we already operate. And obviously, with the Akatara project in Indonesia being a DRO, a discovered but undeveloped resource, that is attractive as well, and something that we have proven good competence in, and we are taking the next step with that with Vietnam in the offshore arena. Of course, those resources were discovered by the predecessor company, but nevertheless, they are discovered and undeveloped. So I think we are not wildcat explorers.

Speaker #4: And see a value arbitrage from how the current operator sees it. So that could be anywhere within the region that we already operate. And obviously, with the Akitara project in Indonesia, being a DBO, a discovered but undeveloped resource, that is attractive as well—and something that we've proven good competence in. And we're taking the next step with that with Vietnam in the offshore arena.

Speaker #4: Of course, those resources were discovered by the predecessor company, but nevertheless, they're discovered and undeveloped. So, I think we're not wildcat explorers. If we were to be doing anything with an exploration component, it's going to be near-field, infrastructure-led exploration, where we have a very good understanding of the subsurface, and the Vietnam upside is a great example of that.

T. Mitch Little: If we were to be doing anything with an exploration component, it is going to be near-field, infrastructure-led exploration where we have a very good understanding of the subsurface. And the Vietnam upside is a great example of that, not inorganic growth, as you say, but I am just using that as an example of the type of opportunity where we have great basin experience and understanding could be attractive as well.

Mitch Little: If we were to be doing anything with an exploration component, it is going to be near-field, infrastructure-led exploration where we have a very good understanding of the subsurface. And the Vietnam upside is a great example of that, not inorganic growth, as you say, but I am just using that as an example of the type of opportunity where we have great basin experience and understanding could be attractive as well.

Speaker #4: Not inorganic growth, as you say, but I'm just using that as an example of the type of opportunity where we have great basin experience and understanding, which could be attractive as well.

Speaker #3: Okay, understood. I guess the question is, it's on the priority list for this year. We're quite far through the year. Do you think we should expect anything this year, or is it likely to be quiet?

James Carmichael: Okay. Understood. I guess the question is, it is on the priority list for this year. We are quite far through the year. Do you think that we should expect anything this year, or is it likely to be quiet?

Speaker #4: Well, I've answered a similar question in the past. We always have multiple opportunities that are at different stages. And so, to give you a little more color, we don't have an active bid at the moment, but there are opportunities that we're pursuing and building the business case for that aren't that far away.

T. Mitch Little: Well, I have answered a similar question in the past. We always have multiple opportunities that are at different stages. To give you a little more color, we do not have an active bid at the moment, but there are opportunities that we are pursuing and building the business case for that are not that far away. But it would be unlikely that we are going to close a new acquisition this year, but not impossible.

Mitch Little: Well, I have answered a similar question in the past. We always have multiple opportunities that are at different stages. To give you a little more color, we do not have an active bid at the moment, but there are opportunities that we are pursuing and building the business case for that are not that far away. But it would be unlikely that we are going to close a new acquisition this year, but not impossible.

Speaker #4: But it would be unlikely that we're going to close a new acquisition this year, but not impossible.

Speaker #3: Understood. Great. Thank you.

James Carmichael: Understood. Great. Thank you.

Speaker #1: We currently have no further questions, so I'd like to hand back to Mitch for some closing remarks.

Operator: We currently have no further questions, so I would like to hand back to Mitch for some closing remarks.

Speaker #4: Great. Thank you, Sammy. Again, I'd like to thank everyone for your time today and your interest in Jadestone and our investment case. Please get in touch and follow up with Phil Corbett.

T. Mitch Little: Great. Thank you, Sammy. Again, I would like to thank everyone for your time today and your interest in Jadestone and our investment case. Please get in touch. Follow up with Phil Corbett if you have any additional questions or comments on the results or today's presentation.

Mitch Little: Great. Thank you, Sammy. Again, I would like to thank everyone for your time today and your interest in Jadestone and our investment case. Please get in touch. Follow up with Phil Corbett if you have any additional questions or comments on the results or today's presentation.

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Q2 2026 Jadestone Energy PLC Earnings Call

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