Jadestone reaffirms guidance, announces board shake-up

(Sharecast News) - Asia-Pacific focussed oil and gas company Jadestone Energy reaffirmed its production, operating cost, and capital expenditure guidance for the year in a corporate update on Friday.

The AIM-traded firm, which was holding its annual general meeting, also announced plans to strengthen its executive management team and refresh its board of directors after a disappointing period of operations.

It said it remained committed to its 2023 group production targets, and expected to meet its underlying operating cost and capital expenditure guidance.

The Akatara gas development project in Indonesia was meanwhile progressing as planned, both in terms of budget and schedule.

First gas was expected to be achieved in the first half of 2024.

In order to enhance its management structure and drive operational excellence, Jadestone Energy added that it was intending to create the position of chief operating officer.

Furthermore, the company announced plans to refresh its board of directors.

It said several non-executive directors had expressed their intention to step down once suitable replacements were identified.

"Jadestone's board recognises that the last several months have been disappointing to all our stakeholders," said chair Dennis McShane.

"We aim to improve our performance through an even greater focus on operational delivery, completing the Akatara project on time and continuing to diversify and grow the business while communicating clearly and regularly to all shareholders.

"As part of this plan, and in recognition of the demands of the rapid growth in operating and development assets over the recent past, we will bolster the senior management team with the creation of a group chief operating officer role."

In addition, and in keeping with best practice to periodically refresh the talent on the board, McShane said that in the coming months the firm intended to replace two independent directors.

"These director and management changes will positively benefit our governance and operating framework in the future."

At 1400 BST, shares in Jadestone Energy were up 1.74% at 35p.

Reporting by Josh White for Sharecast.com.