This article first appeared on GuruFocus .
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Revenue (before hedging):$261 million, up 13% year-over-year.
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Net Revenue (after hedging):$234 million, after hedging charges of $27 million.
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Realized Price:Just over $90 per barrel, supported by strong oil prices and high premiums for some cargoes.
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Field Operating Costs:$122 million, including nonrecurring costs for the Okha FPSO dry dock, subsea campaign at CWLH, and Stag CALM buoy recovery activities.
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Adjusted Unit Operating Costs:$37.64 per barrel, impacted by lower production and higher field operating costs.
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Adjusted EBITDAX:$102 million, compared to $100 million in the prior-year period.
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Loss After Tax:$4.8 million, driven by lost production at Stag and CWLH.
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Net Cash from Operations:$97 million, nearly double H1 2025.
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Capital Expenditure:$35 million, primarily for the PM323 Phase 9 drilling campaign.
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Net Debt:$26 million at June 30, 2026, comprising $174 million in cash and $200 million in debt from the bond issuance.
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Reported Production Costs:$164 million, up $44 million year-over-year, including approximately $18 million of noncash inventory movements.
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Insurance Proceeds Accrued:$11.1 million in H1 2026, related to Stag, expected to be received in Q3.
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Hedging Position:1.3 million barrels hedged through Q1 2027 at a weighted average price of just over $74 per barrel, representing approximately 35% of forecast oil and condensate production.
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Release Date: August 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Achieved 13.6 million man hours without a lost time incident and no significant environmental incidents, demonstrating strong HSE performance.
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Malaysia drilling campaign delivered 8,500 barrels of oil per day incremental production, more than tripling field production, and was completed over 20% under budget.
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Strong financial performance with revenues up 13% to $261 million and net cash from operations nearly doubled to $97 million.
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Progress in Vietnam with FDP approval, gas sales agreement signed, and farm-out process attracting significant interest, targeting FID by year-end 2026.
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Successful refinancing with a Nordic bond issue, providing over $200 million in available liquidity and reducing net debt to $26 million.
Negative Points
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First half production negatively impacted by unplanned downtime at CWLH and Stag, with CWLH restart expected near end of Q3 and Stag not until Q2 2027.
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Adjusted unit operating costs increased to $37.64 per barrel due to lower production and higher costs, including nonrecurring dry-dock and subsea expenses.
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Generated a small loss after tax of $4.8 million, with production losses outweighing stronger oil prices.
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Liquidity subject to timing of liftings and expenditures, with deferred liftings in the second half due to suspended production at Stag and CWLH.
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Hedging charges of $27 million reduced net revenue, and future hedges are at lower prices than current market, potentially limiting upside.
Q & A Highlights
Q: Can you provide a bridge from the current production guidance of around 16,000 to 18,000 boepd to what production could look like next year, assuming CWLH returns shortly, Stag returns in the middle of next year, and PM323 maintains its existing performance? A: CEO Thomas Little stated that it is too early to provide that level of detail. The company needs to first get CWLH back online and stabilized, and gather more performance data on the new PM323 wells, which are long horizontal wells that will naturally decline faster than vertical wells. He noted that the company is "a bit out in front of us" on this question and will provide clarity once the budget details and capital allocation impacts are finalized.
Q: Can you quantify the expected economic impact of the Stag shutdown and how much you expect to regain through insurance, given the $12 million accrued to date? A: CFO Andrew Fairclough explained that the total anticipated property insured recovery value is about $30 million, comprising roughly $20 million for the replacement value of the CALM buoy and another $10 million for labor, repair, and recovery costs. He expects the cost of replacement to be fully covered by the insurance package, and when balancing business interruption payments against reduced operating expenses, the company expects to be cash flow neutral through the shutdown period.
Q: What are the next steps between now and the farm-out and FID for the Nam Du/U Minh development in Vietnam, and what capital expenditure might be needed if FID is reached before the farm-out is completed? A: CEO Thomas Little outlined that the remaining steps include Petrovietnam's approval of the field infrastructure contract award, which is expected in the near term, and finalizing details on project finance and security structure. The farm-out process is in late stages with select shortlisted bidders, and while the goal is to sync the farm-out with FID, the final closing may lag slightly behind project sanction. Capital requirements could be around $10 million-plus if the ideal timing on sanction is achieved, with the equity share farmed out being reimbursed next year.
Q: Given the strong drilling results in Malaysia, where are you with the PM323 license extension, and does the drilling result change the terms or likelihood of getting the extension? A: CEO Thomas Little stated that the successful execution of the complex extended-reach wells bolsters the case for the extension. The terms are largely agreed, with a few details remaining to be worked out. He noted there is additional development potential in the field, including infill drilling and associated and non-associated gas resources that could be developed under the license extension. He expressed confidence and optimism that the extension will be completed in the very near term.
Q: Are there any weather considerations to be mindful of for the Stag CALM buoy installation timeline, and is it a like-for-like replacement? A: CEO Thomas Little acknowledged that weather will be a factor during critical operations, but noted that weather events typically last only a few days and come with good warning, allowing the team to plan around them. He confirmed the team is exploring ways to accelerate the timeline to take advantage of the most ideal weather windows. The replacement is a like-for-like buoy, and the deployment is targeted for Q1 next year with production resumption in Q2.
Q: Are there any updates on PM428 in terms of plans and the drill-or-drop decision? A: CEO Thomas Little stated that the decision point is in Q4, with the subsurface team wrapping up work and a review scheduled within the next week. If the technical prospectivity looks good, they will build a business case; if they decide to drop it, there are no consequences or follow-on payments. If they decide to drill, it would most likely be a 2028 activity.
Q: Given the strong gas prices and strategic premium on Asian gas, can you provide more detail on the progress and next steps for the Montara gas resource? A: CEO Thomas Little noted the project has moved from conceptual to appraisal phase, with more detailed engineering work to be done, including evaluating floating LNG options and tying into existing infrastructure. The 800 Bcf of gas in place is discovered, not exploration resource. He emphasized the company is encouraged by the potential and likes that they can control their own destiny without relying on third-party ullage. A commercial viability assessment is targeted for the first half of next year.
Q: Can you describe the types of M&A opportunities that are most advanced, and should we expect anything this year? A: CEO Thomas Little stated that M&A is episodic and difficult to predict, but reiterated the focus on opportunities where Jadestone can create value through its technical skills and basin understanding, particularly assets that have fallen down the priority list for larger operators. He noted there is no active bid at the moment, but there are opportunities being pursued. While it would be unlikely to close a new acquisition this year, it is not impossible.
Q: How do you see net debt progressing through the rest of the year given the commentary on potential working capital unwind and lifting schedules? A: CFO Andrew Fairclough noted the company doesn't provide net debt forecasts, but highlighted that with CWLH reconnection expected at the end of Q3, there won't be a CWLH lifting in the back end of the year, which will be moved into next year. The overlift position will continue, and with Montara cycling through and PM323 maintaining operating costs, the direction of travel for cash flows will be impacted until liftings resume next year.
Q: Is the Puteri cluster connected at all to the license extension at PM323? A: CEO Thomas Little clarified that the Puteri cluster is a separate license and not related to the PM323 extension. The company continues to work through what looks to be a good option for the redevelopment and will share more information when there is more clarity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
