Singapore-headquartered independent Jadestone Energy’s capital expenditure guidance for 2023 is expected to total US$110 million to US$140 million, the largest investment programme in the upstream player’s history and with the lion’s share — approximately 70% — destined for the Akatara field development that is currently on budget and on schedule for first gas by 30 June next year.

A further 15% of this year’s capex is destined for the infill drilling campaign on Block PM 323 offshore Peninsular Malaysia.

The company’s underlying operating costs in 2023 are expected to total between US$180 million and US$210 million.

When adjusted for a full-year of operating costs associated with the acquisition of interests in the producing Cossack, Wanaea, Lambert and Hermes (CWLH) oilfields and higher tanker costs at its Stag oilfield and higher logistics costs at Montara — all offshore Australia — underlying operating costs are expected to be around 6% higher year-on-year.

Jadestone expects to boost production through the end of 2023 as it restarts production from the ill-fated Montara oilfield offshore Australia plus output from the Sinphuhorm field onshore Thailand.

“In the first quarter of 2023, production has been impacted by the tank repair and planned maintenance activities at Montara, resulting in an average of just over 10,000 barrels of oil equivalent per day in the quarter,” said Jadestone chief executive Paul Blakeley.

“Our guidance for the remaining nine months of the year is 13,500 to 17,000 boepd, reflecting a return to routine operations at Montara and the inclusion of Sinphuhorm.

“The midpoint of guidance represents 33% growth over 2022 and 22% over 2021, the latter being the most recent year of full Montara production.”

The operator expects its 2023 production to be divided approximately 85% for oil plus liquids and 15% natural gas.

Jadestone’s Malaysia infill well campaign in the second half this year and its Akatara gas field onshore Sumatra, Indonesia, starting up in the first half of 2024 should add a further 5000 boepd which, when compared to the 2023 mid-point, represents another 33% increase, noted the operator.

The company expects production could be even higher as it is eyeing several M&A opportunities.

Jadestone last year achieved a 45% year-on-year increase in proven plus probable reserves, delivering a near six-fold replacement of production in 2022.

As of 31 December 2022, Jadestone had proven plus probable oil reserves of 64.8 million barrels of oil equivalent, a 45% increase compared with 12 months before and a near six-fold replacement of production in the year.

The company’s best case contingent resources totalled 104.3 million boe at the end of 2022.