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(Alliance News) - Jadestone Energy Inc has secured a new USD200 million debt facility to press on with development plans in 2020 after a "significant" year of growth in 2019.
The facility has been agreed with a syndicate of six banks: Australia & New Zealand Banking Group Ltd, BMO Capital Markets, BNP Paribas SA, Singapore's DBS Bank Ltd, Natixis, and Societe Generale SA.
Perth, Australia-based Jadestone said all terms of the new facility have been agreed. It is secured against the Montara fields off the coast of Western Australia, and if the field development plans are approved, the Nam Du and U Minh gas field off Vietnam.
The USD200 million loan has an accordion for a further USD100 million.
As of the end of 2019, the company added, it had a net cash position of USD39.3 million.
In 2020, Jadestone is planning capital spending of between USD160 million and USD190 million. This will include procurement and construction at Nam Du and U Minh, as well as the drilling of the H6 infill well at Montara and the 50H infill well at the Stag field, also off the coast of Western Australia.
The H6 infill well was originally planned for 2019, but was delayed due to problems securing suitable offshore vessels.
Jadestone said up to 60% of the capital costs of the Nam Du development will be funded using the new facility.
The field development plan for Nam Du and U Minh is in the final stages of approval by the Vietnamese government. Jadestone expects approval "shortly", and this will mean no further regulatory hurdles remain, with the company targeting first gas late in 2021.
In 2020, Jadestone is targeting average crude oil production between 13,500 barrels to 15,500 barrels per day, at an average unit production cost of USD20.50 per barrel to USD23.50 per barrel.
The company has also reaffirmed guidance of a maiden dividend of between USD7.5 million and USD12.5 million. One-third of this will be paid as an interim dividend and the rest as a final payout.
In 2019, Jadestone said Tuesday, production averaged 13,531 barrels of oil per day, meeting guidance. The cash operating expense was USD22.90 per barrel.
Jadestone will release financial results for 2019 on April 23. Shares were 0.7% lower on Tuesday morning in London at a price of 69.02 pence each.
By George Collard; georgecollard@alliancenews.com
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