Jadestone Energy plc (JSE) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and welcome to the Jadestone Energy plc investor presentation. [Operator Instructions]. Before we begin, we would just like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to Executive Chairman, Adel Chaouch. Adel, good afternoon, sir.

Good afternoon, Jake, and thank you for hosting us. Hello, everyone. We're glad that you could join this presentation today on the Investor Meet Company platform. Again, I'm Adel Chaouch, I'm the Executive Chairman of Jadestone Energy. I am joined on the call today by Mitch, our CEO; Andrew, our CFO; and Phil, our Head of Investor Relations, who will moderate the Q&A session. I will introduce the presentation before I hand over to Mitch, who will take you through the assets, then to Andrew, who will conduct a summary of our recent results and an overview of our capital structure. After our prepared comments, we will address a question that had been already received in the runner up to today's presentation as well as answering as many of those received during this webinar. Our slides here are based on our recent first half year 2025 results presentation with a few additional slides to provide you some more background on the company for those who are less familiar with Jadestone. Now moving to Slide #2, we're going to pass that one, which applies our standard disclaimers. I will start on Slide #3. I will remind ourselves that Jadestone Energy is an upstream production and development company focused on the Asia Pacific region. Since its inception in 2016, Jadestone has grown significantly from 0 production then to just over 20,000 barrels of oil equivalent per day in the first half of this year. This has been achieved primarily through the acquisition of and the reinvestment in existing oil assets as well as the development of discovered gas resources. We have now a significantly growing footprint across the Asia Pacific region, having established a material presence in Australia, Malaysia and Indonesia, 3 of the top 5 upstream producers in the region. This platform and our in-house expertise and experience, our deep stakeholder relationships mean that we are well placed to continue our growth trajectory through our Vietnam gas discoveries and also acquiring further producing oil or gas assets in our core areas. Significant changes to Jadestone board and management team over the past 18 months have brought a renewed focus and commitment to the company's strategy and vision. This started to pay off in the first half of 2025, where we delivered a record production and a much improved financial performance, in particular, delivering our first H1 profit since 2022. Our mantra is operational excellence and financial discipline. Efficient management of our existing assets and balance sheet will rebuild the trust that has eroded in the recent years and set Jadestone up for further successful and accretive growth. Let's move now to Slide #4, where we set our case for our geographical focus. At the beginning of this year, we were present in 5 countries across the Asia Pacific region. In April of this year, we exited Thailand for a $40 million upfront consideration, very accretive transaction as part of our portfolio optimization and focus on core operated areas. This represented a 44% return over the 2 years we owned that asset and also a onetime net asset value multiple. This outcome is particularly relevant in the context of our share price, which continues to trade at a significant discount to the NAV of our producing assets. Now we are in the Asia Pacific region, which is home to over 50% of the world population, which is forecast to grow by 10% to over 5 billion people by 2050. Consequently, the region has a significant and growing energy demand, particularly natural gas, where the deficit between regional supply and demand is forecast to grow from 26% in 2023 to over 45% in 2050. And furthermore, in contrast to several major developed economies, the successful and thriving oil and gas industry in the Asia Pacific region is seen as strategically important and complementary to the energy transition. As a result, the oil and gas sector is supported by sensible policymaking and fiscal regimes as well as being seen as the desirable industry in which people can start and pursue a career. If you look on the chart that is on the right-hand side of the slide, we use WoodMac data to illustrate the Jadestone's opportunity set. We are an established operator in 3 of the 4 top countries in the region ranked by recoverable resource potential and 4 of the top 7 when Vietnam is included. Across these 4 countries, Wood Mackenzie estimates that there is 70 billion barrels of oil equivalent of remaining recoverable resources, a significant price for the industry and Jadestone in particular to pursue. Let's go to Slide #5, where we set out our 2P reserves and 2C resources at the end of last year. Our 2P reserves are independently audited by ERCE and totaled last year 64.5 million barrels of oil equivalent after adjusting for the Thailand disposal earlier this year. Akatara, our Indonesian producing asset, comprised just over 1/3 of these reserves. That's followed by our Australian assets in total comprising of 50% of the 2P reserves at the end of last year, with the rest being our Peninsula and Malaysia assets. Based on our 2024 production levels, our 2P reserve life is approximately 10 years, underpinned by the plateau of production from Akatara. Now looking on the right-hand side of the slide, our 2C resources at the end of 2024 totaled 122 million barrels of oil equivalent, of which the majority comprised Vietnam and the asset in Australia CWLH. It is our view there is no value being attributed to any of our contingent resources, offering considerable upside if only a portion were to be commercialized. With that, I would like to invite Mitch to walk us through the asset performance. Mitch to you.

Thank you, Adel. I'd also like to welcome and say thank you to everyone joining this webcast presentation. I'll be providing an update on our assets and hopefully leave you with a good understanding of both our operational performance as well as the significant upside potential in the portfolio and what we see as likely near-term catalysts. I'll start with our Indonesia operations on Slide 6. Jadestone holds a 100% interest in the Lemang production sharing contract, which is located on the island of Sumatra. The Lemang PSC contains the Akatara field, where wet gas is produced from 4 wells and processed to deliver sales gas, condensate and LPG. The processing facility was fully commissioned at the end of last year and has really been firing on all cylinders since. In the first half of 2025, the asset achieved outstanding reliability with uptime of 96%. As a result, the field averaged nearly 5,800 BOE per day in the period, split roughly equally between gas and liquids. We're extremely proud that this was delivered against a backdrop of continued strong HSE performance with 8.8 million man hours and counting now worked without a lost time injury. In May, we executed a week-long planned shutdown, performing work to improve the reliability and robustness of the production facility. Since returning to production, we've achieved world-class performance with nearly 98% uptime. We also took advantage of the shutdown to implement a debottlenecking project, which allowed us to increase production capacity by nearly 10% for minimal cost. We've since demonstrated that we can consistently deliver higher rates and our gas buyer has responded with higher nominations, resulting in production routinely hitting 6,800 BOE per day in recent months. We're, of course, very proud of our Indonesian team and the performance of the asset, and we'll be showcasing the facility by hosting a site visit with some sell-side analysts in just over 2 weeks' time. Akatara also provides us with an excellent platform from which to build our Indonesia business further, which brings us on to Slide 7. We're looking to expand our footprint in Indonesia, both organically and inorganically. Work continues on reprocessing existing 2D seismic data over the PSC. And on the basis of that work, we've been working with the host government and are proposing to replace our original 3D seismic acquisition commitment with an additional well. We expect to conclude the PSC amendment process to incorporate this change by the end of the year. If successful, subsurface work and prospect generation will continue throughout 2026 in order to prepare for drilling as early as 2027. As Adel said earlier, we are not greenfield explorers, and we will not be participating in licensing rounds on that basis. The activities on the Lemang PSC are fulfilling our commitments under the license. And our priority is on identifying near-field prospects where we can deliver incremental value quickly by tying in any successful gas discoveries to the existing infrastructure. On the back of our successful Akatara project, we have established a strong and positive relationship with Indonesian upstream stakeholders, both regionally in the Jambi province and nationally with SKK Migas, the upstream regulator. We're actively looking to leverage those relationships and our proven development capability into accessing other opportunities in the country. Moving now to Slide 8. I'll provide an overview of our Vietnam assets. We hold a 100% working interest in 2 shallow water licenses off the Southwest Coast of Vietnam, which contain the Nam Du and U Minh gas discoveries. The 2 discoveries, which are the focus of our initial development activity, contain an estimated 200 to 300 Bcf of recoverable gas contained in high-quality reservoirs with high permeability and very low concentrations of carbon dioxide. As a result, gas production from both fields will require minimal processing before being compressed and piped onshore. There are 2 other important takeaways from this slide. On the map, you can see the location of the Ca Mau Industrial and Power Complex in Southwestern Vietnam. Ca Mau is a strategically important facility, estimated to supply 7% of Vietnam's electricity as well as meeting approximately 40% of domestic fertilizer demand. The facility currently receives its gas supply from the PM3 fields, which are located just to the south of Jadestone's licenses. The gas is supplied through an existing pipeline, which lies approximately 34 kilometers to the east of our Nam Du and U Minh development area. In the next couple of years, the Ca Mau complex will see reduced supply, partly due to natural decline at PM3, but also because the Malaysian government will divert its share of PM3 volumes to domestic use. The gas we are developing at Nam Du and U Minh is ideally situated to address these shortfalls through our planned development, which will tie into the existing pipeline infrastructure. Finally, our team has identified significant upside potential within our development areas, which we've illustrated with the yellow prospect and lead out lines shown surrounding the discovered fields, which are highlighted in red. Moving now to Slide 9 and more detail on the progress we are making to advance the project. I'm really pleased to share the positive momentum we are achieving here. In recent months, we've made very meaningful progress on the commercial and contractual agreements, which will underpin the development of this significant gas resource. The key agreements are the field development plan and gas sales agreement. The FDP is in the final stage of government approval after being endorsed by the regulator, PetroVietnam. When we presented our H1 results at the end of last month, I referred to a small number of points outstanding before we could finalize the gas sales agreement. I'm pleased to report that we have now addressed those satisfactorily and are moving forward with the Ministry of Industry and Trade to schedule the FDP defense meeting where final approval will be sought. I remain optimistic that we can achieve that approval by year-end. In conjunction with the significant progress on the FDP and gas sales agreement, we've also recently issued tenders for the FPSO and remaining field facilities. We are also preparing to engage with third parties interested in participating in the Nam Du, U Minh development with us. Our key objective is to bring in a strong partner to co-develop opportunities like this alongside the Jadestone team. The right partner brings complementary technical skills and experience while also sharing the development cost, which allows us to both reduce risk concentration and pursue further diversification in our portfolio. While it's difficult to guide to a precise time line for the finalization of project approvals, it's safe to say that this is not only an important project for Jadestone, it's equally an important project for the host country for the reasons I outlined earlier. Additionally, the development will represent the country's first production hub in Vietnam waters off the Southwest Coast and will contribute to Vietnam's national objective to develop indigenous supplies for key regional infrastructure like the Ca Mau Power Generation and Industrial Complex where our gas will be delivered. As further evidence of Vietnam's national energy priorities, the government recently issued into law Decree 100, which prioritizes domestic gas over imported LNG and provides the legal framework that allows our gas buyer to pass the take-or-pay commitments they provided to us directly through to the electricity generator that is using the gas. Both of these considerations are very constructive for the commercialization of our project. As you can see from the photo on this slide, I had the pleasure of visiting Vietnam in July with the Jadestone team where we met with PetroVietnam and other key stakeholders. PetroVietnam's statements from that meeting, which you can see beneath the image, are a visible sign of the positive relationship we have developed with the regulator and their commitment to bringing Nam Du and U Minh gas to market. I look forward to being able to share more good news with you on this key project, and I'm hopeful that it will be in the not-too-distant future. Lastly, and following on from my comments on the previous slide, our team with significant experience and subsurface understanding of the Malay Basin has identified additional unrisked gas in place in excess of 1 Tcf within our existing licenses, a significant portion of which is proximal to the planned development facilities. So we certainly hope the Nam Du and U Minh development is just the first chapter of Jadestone's future story in Vietnam. Moving now to Slide 10. I'll spend a couple of minutes covering our refreshed approach to late-life asset management as well as the associated topic of decommissioning planning at Montara and Stag. For those of you who are less familiar with Jadestone, Montara and Stag were Jadestone's foundation assets with Stag acquired in 2016 and Montara in 2018. Both assets are located offshore Western Australia. Montara consists of a wellhead platform and FPSO, which produce oil from the Montara field and 3 satellite subsea developments, while Stag produces through a manned production facility. Stag oil is a heavy sweet crude, which is in high demand regionally for use as a bunker fuel and as such, commands a significant premium to the benchmark. Both of these assets are in the later stage of their producing lives, and hence, our focus at both is on late-life asset management to deliver safe operations, maximize facility uptime and extend economic lives. These are topics that I've focused a lot of my time on since joining Jadestone earlier this year. On the left hand of this slide is an overview of the framework that I've utilized with success in my previous roles, and I'm now working closely with the Jadestone team to leverage my 30-plus years within a large E&P to strengthen our approach on delivering operational excellence in late-life assets. There's nothing particularly novel about the framework on this page. The key is ensuring we have the right technical competence and experience combined with an unwavering discipline across all of these elements, discipline that comes from measuring and reporting what's important and ensuring that leadership has appropriate visibility to each measure. Put simply, in the famous words of Lord Kelvin almost 150 years ago, if you can't measure it, you can't improve it. The corollary is also true. If we measure what's important and create appropriate visibility, we will improve it. While all elements of the framework are important, none are more important than HSE and regulatory compliance, which for all practical purposes is the cornerstone to integrity management and ensures our license to operate. Integrity management will continue to be a key focus area for us. The chart in the upper right of this slide shows that we have spent nearly $50 million per year combined on Montara and Stag R&M over the past 3 years, up nearly $10 million per year from the previous 3. As some of you will know, last month, we received an enforcement notice from the Australia offshore regulator in relation to integrity management at Montara. We will, of course, fully comply with the requirements of the general direction. We are already making good progress towards addressing their concerns, and they have accepted the risk mitigations we have put in place while we continue to address their remaining requirements. I take some pride in the fact that we had self-identified many of the same issues during my operational deep dives, and we were already in the process of addressing those at the point of receiving the general direction. However, I take any direct intervention by a regulator seriously. This is a prime example of an unexpected event that we must learn from and integrate into improving our overall approach. Finally, this slide highlights how Jadestone is applying new technology to drive further efficiency and insights to our integrity management program. The use of digital twins in offshore infrastructure has been around for some time. However, their use for FPSOs is relatively new with the first model as far as I'm aware, delivered in 2020. Over the past year plus, our Australia team has been working with an industry expert to create a digital twin for the Montara venture with the image on this page showing a screen grab from the software dashboard. The digital twin will allow us to apply state-of-the-art physics-based structural integrity simulation of the entire vessel, providing us with the assurances we need to keep our employees safe, focus our inspection efforts and importantly, address the issue that's at the top of the Australian regulators' 5 national priorities. Moving on to Slide 11. We have set out our approach to abandonment planning for Montara and Stag. Based on year-end 2024 ERCE reports, the economic limit for Montara is not expected to occur until 2030, with Stag much further into the next decade. Of course, these timings can change, but our focus will be on maximizing the economic life of the fields through best-in-class late-life field management and then executing the various abandonment scopes as efficiently as possible. The chart on the lower right-hand side shows an indicative schedule for Australia abandonment spend over the next 10 years. Only Montara activity would commence during this period with Stag's economic limit currently projected in 2035. The nature and timing of these activities and expenditures naturally carry some uncertainty, but we feel that expenditures for Montara early next decade are manageable in the context of the projected cash flows from existing assets as well as the growth of the group's business, which we continue to prioritize. As we've highlighted on many occasions and again later in this presentation, the forward NPV10 of our 2P reserves as of year-end 2024 was on the order of $650 million. And this analysis, of course, incorporates the associated abandonment obligations. We're also exploring several potential options to mitigate the current estimated cost of decommissioning. Collaboration amongst operators, particularly on rig and support vessel contracts is commonplace in the industry and is something we are already discussing with nearby operators who have similar abandonment time lines. We have previously talked about the potential of the discovered gas resources in the Montara area, which, if developed, would continue to utilize some of the existing infrastructure, and we're also evaluating options to redeploy the Montara venture for other projects at the end of its useful life in Australia. Equally important, global decommissioning activity is expected to increase in coming years. Activity drives innovation, and we are living in an age where technology is developing at a significant pace, which may benefit any future decommissioning plans and budgets. I hope our message is clear. We will manage our assets with the highest standards and reduce risk as low as reasonably practical. We will also seek to extend field lives where possible while acting as a responsible operator and progressing our plans for decommissioning activities, constantly looking for improved efficiencies. Now let me hand over to Andrew to give you a quick recap of the first half results, an overview of our capital management and summarize existing guidance.

Thanks, Mitch. Going back to our first half results. On Slide 12, we have set out key metrics for the business for that period. Production in the first half of the year reached a record level for Jadestone with lifted volumes increasing 52% to 3.5 million barrels of oil equivalent per day, underpinned by a production increase of 21% to just over 20,300 BOE per day, driving revenue and cash flow growth. While the average realized oil price for the half year was 13% below the first half of 2024 at $77.45 per barrel and the average realized premium was $3.54 per barrel versus $4.59 for the comparative period, the average realized gas price significantly improved to over $5 per Mcf through the contribution of gas production from Akatara in the period. These, together with increased production, generated revenues of $228 million, which was an increase of 23% over the comparative period. Reported production costs were 16% lower to just under $115 million. And if we look at the underlying asset operating costs being the cost of operations, workovers, logistics, repairs and maintenance and transportation, this was 22% lower half year-on-half year with adjusted unit OpEx being $24.70 per BOE. A combination of revenue growth and improved costs, together with a gain on the sale of our Thailand asset in April, supported the positive momentum we saw at the full year and generated a $32.8 million post-tax profit in the first half. These also translated into a significant increase in operating cash flow pre-working capital, which was more than double that generated in the first half of 2024. Capital expenditure increased period-on-period, reflecting the activity of Skua-11 well in the first half compared to lower activities -- sorry, lower levels of activity in the final stages of development at the Akatara gas plant in 2024. Net debt at the 30th of June was $108 million, having repaid $33 million of the RBL facility. And in July, we received a further $62.5 million of proceeds following Stag and Montara liftings, which were completed in June. It's worth noting that this shows how our liquidity and net indebtedness through the year can be impacted by the timing of lifting receipts. Rolling forward, Slide 13 shows that at the end of August, the cash balance stood at $113 million, including restricted cash, which included the Stag and Montara lifting proceeds and total liquidity was $143 million, including the $30 million working capital facility, which remains undrawn. Ongoing notable expenditure relates to the closeout of the tail end of Skua-11 well cost and drilling campaign at Montara. And since the slide was created for the first half presentation, we've made a further repayment of $70 million to bring the current RBL balance to $150 million. It's worth noting that the RBL facility matures in 2027 and is now in the amortizing phase, during which the principal is repaid and which is normal for a debt facility of this type. It's, therefore, a logical time to be looking at the capital structure and the options available to us, and we're actively pursuing this. Our goal is to deliver a capital structure that will support continued investment into our business in order to drive future growth. We executed a number of hedges in June, totaling 1.8 million barrels through to the end of the third quarter of 2026 with a weighted average swap price of approximately $70 per barrel. This is about 40% of forecast oil production over the period and provides us with an element of protection against any near-term oil price weakness. Turning to Slide 14, I'll wrap up my comments with a quick recap of our guidance metrics. The strong production performance in the first half of the year allowed us to raise the lower end of the production guidance range in our trading update in July, and we reiterated this at the first half results at the end of September. As a result, we expect to deliver record production for a third consecutive year. The operating cost guidance range remains at the $240 million to $280 million range after being reduced in our update in July. We expect a greater weighting of costs in the second half of the year, primarily associated with workover activity at Stag and phasing of repairs and maintenance work across the portfolio. Capital expenditure guidance stands at $105 million to $115 million. This was increased earlier this year on the back of the extended duration of the Skua-11 well. It remains our goal, though, to offset the additional costs encountered on Skua-11 with targeted efficiencies throughout the business. Finally, we are guiding to free cash flow on an unlevered basis over the 2025 to 2027 period to be in the range of $270 million to $360 million, which is based on a $70 to $80 per barrel real Brent price from 2025. And with that, I will hand back to Adel [indiscernible].

Thank you for that. Let's move to Slide 15, which highlights on structural undervaluation, both on an absolute basis and relative to peers. If you look on the chart on the left-hand side of this slide, it places our current market capitalization in the context of the end of the year 2024 valuation for our 2P reserves. This is on an NPV10 basis and has been adjusted for the sale of our Italian assets in April of this year and the end of year 2024 net debt. Again, as mentioned, these valuations reflect all forecast abandonment costs at the end of 2024. While these valuations were calculated using a higher Brent oil price estimate than we are seeing currently, they do not take into account any of Jadestone growth options, particularly our Vietnam resource. The gap between the market capitalization and underlying value has narrowed to the welcome share price performance since our results earlier this month. But we still remain very focused on closing this gap further by delivering on the underlying cash flow, which we can recycle into growth or by crystallizing value through portfolio management as we did with the Thailand disposal earlier this year. On the right-hand side of the slide, you can see that Jadestone sits at a deep discount to the immediate peer group on a share price to core net value asset ratio. This is based on Stifel data that they put together recently. Again, while this picture has improved to positive share price reaction in recent weeks, the peer group benchmarking continues to be very frustrating to us. However, it continues to imply that there's significant upside in the current price share if Jadestone valuation were to normalize towards the sector's rating. Let's now go to the final slide, Slide 18. And let me finish by reiterating the key points of the investment case in our company. First, the success of Akatara development in Indonesia underpins a diversified portfolio of 6 assets across key jurisdictions of Asia Pacific, which produced just over 20,000 barrels of equivalent oil a day in the first half of this year. This producing portfolio provides a strong foundation for further growth, both organic and acquisition-led as we pursue our strategic aim of being the leading Asia Pacific independent upstream company. We operate in 3 of the largest upstream producing countries in the region, providing us with the experience, capability and credibility that sets us apart from our peers. This key differentiator also gives us a competitive advantage when it comes to pursuing new opportunities in the region. We believe there is significant value in our existing assets, which is not being recognized in our share price, which is complemented by the intangible value of our people and our platform. Since the first half year results at the end of last month, we have been marketing Jadestone's story and investment case to both existing and prospective investors in the U.K., Europe and the U.S. The tone and sentiment of the meetings have been very positive, reflecting the strong performance of the business for the first half of this year. For the first time in several years, we feel the trust is being restored and investors are willing now to revisit the Jadestone investment case, recognizing Jadestone's differentiated platform in the Asia Pacific region and the prospects for further accretive growth, particularly in Vietnam, as Mitch described earlier. While oil price weakness may prove to be a temporary headwind, we are confident that we, with our people, assets and relationships, can deliver on our aims and value for our shareholders. With that, I want to thank you and give it back to Jake.

Perfect, guys. That's great. If I may just jump back in there before we move to Q&A. [Operator Instructions] So Phil, at this point, so if I may hand over to you to chair the Q&A with the team. And if I pick up from you at the end, that would be great.

Absolutely. Thank you, Jake. And again, thanks to everyone who submitted questions through the platform prior to the deadline. I will cover those questions first before turning to those submitted during the presentation. Firstly, we've had several questions, both pre-submitted and also live today relating to Slide 15 in the presentation, asking how we will address the discount of Jadestone's share price to the ERC valuation of the company's 2P reserves and also the listed E&P peer group. Many of those questions have touched on the possibility of buybacks to address the valuation gap, our plans to engage with investors going forward and also some thoughts around alternative listing venuws. Adel, should I hand that one over to you.

Thank you, Phil. And of course, we share this frustration that our shareholders have on the current share price compared to the asset valuation as shown here on the slide. We do believe that the market confidence eroded over a number of years because of the challenges that the company met in delivering guidance for a number of half years. We have done a major refresh of the Board and management to focus the technical and strategic skills with the intent that the leadership is focused on one key piece, which is shareholder value generation. Our H1 results with the new leadership attest to that with a very positive reaction and a share price uptick. We believe there will be another number of cycles of natural re-rating of our stock as the market regains further confidence in the management team as we deliver further results. And also the growth -- delivering on the growth of activities, particularly in Vietnam at this near term, and it is not actually accounted in this valuation. We remain very focused on M&A. That DNA has not changed for the company. We see a number of opportunities and delivering on these possible opportunities will create further value. Now in terms of addressing the question regarding the share buyback, we did get the authority at the past AGM here in June that allows Jadestone flexibility to deliver shareholder returns at the right conditions. Today, and as Andrew had described it, we are in the process of looking at refinance of our debt to allow the company to deliver on growth plan, the plan that we have set out for the 3 years from '25 to '27. In the backdrop of very soft oil prices and challenging conditions, we believe the timing is not right to basically execute on this authority. As these conditions improve, of course, we'll revisit and reconsider some options for our shareholders. Phil, back to you here for further questions.

Sure. Thanks, Adel. So now we have a question asking about the future of the Lemang PSC and in particular, the potential of future exploration activity on the license.

Thanks, Phil. Mitch, I'll leave this one with you.

Sure. Happy to provide a bit of color there. I'd say, first of all, just reiterate how pleased we are with the performance of the project. And we're not the only ones. The Indonesian officials and upstream regulators have praised this project as the best executed project of its kind in Indonesia. Of course, our first priority is certainly on maintaining its world-class uptime and reliability so we can take advantage of the additional capacity that we captured during the recent planned turnaround, the debottlenecking effort that I mentioned in my prepared remarks. But as I also said, we're also looking to grow our position on the back of that success and relationship with the upstream regulators, both organically and inorganically. We have an exploration well commitment. We're currently working through reprocessing of all the 2D seismic data that we have across the PSC. It's good quality data, but reprocessing will bring out the full benefit of that and allow us to refine our interpretations on the prospectivity that we see. We have some interesting leads identified, but we want to make sure we understand them as completely as we can before making any firm decisions. So we'll be doing that technical work into 2026 and make a decision from there with potentially drilling the first well in 2027. And as I mentioned, our goal will be to focus on near-field opportunities that if we're successful in discovering additional gas, we could quickly tie it into the existing infrastructure. So that's kind of the state of play there with respect to Lemang PSC directly.

Okay. So next up, we've had a couple of questions on Vietnam, specifically asking about the structure of any process to bring in a partner or partners into the Nam Du and U Minh development. Roughly or broadly, how much equity in the project are we thinking about farming out? Our thoughts around the timing of first gas. And lastly, will the facilities be sized to take into account the upside potential or just the Nam Du, U Minh plateau?

Thanks Phil, definitely great questions on Vietnam organic growth. I'm going to ask Mitch again to cover this one.

I'll do my best. Phil, you might have to remind me if I missed one of the questions. There were, I think, 5 wrapped into 1 there. But let me start with the farm-out process questions. We'll be looking to market 40% to 50% interest in the project, while our intent would be to retain operatorship, but bring in a strong partner that has complementary skills and capability to complement the Jadestone team. I just think that's the right approach for a company of really any size to diversify and reduce risk concentration. So that's clearly an objective that myself and the Board are aligned on. We haven't really kicked off the effort in earnest yet as our focus is on FDP approval. And that's got to be first and foremost and primary activity is to get that across the line. Hopefully, we'll achieve that by year-end. That's what I'm expecting or at least hopeful of. And then that would be a more natural time to kick off the effort. We certainly have already had some approaches by potential partners. We just haven't kicked the process off in earnest yet. So from a process standpoint, just typical industry standard process, it will be quite competitive, I think, given the quality of the development opportunity, the maturity of it and, of course, the significant upside within the licenses. So looking for a partner at 40% to 50%, one that complements our technical skills and helps fund the development of it with us. On the time line, if we get FDP approval by year-end or thereabouts, we'll be looking to sanction the project towards the back end of next year. Once the project is sanctioned, we'll be able to award the FPSO contract, which is really the critical path item. And we'll wait and see what the bids reveal. We've got a lot of interest in the project. So there should be good competitive tension there as well. But typically, we would expect a little over 2 years delivery time for an FPSO like this. So that puts us somewhere near the end of 2028 for first gas at the earliest. We'll have a lot more clarity on that as we go through 2026 and get the bids evaluated and clarified, et cetera. I think I've missed at least one question in there somewhere.

No. So thanks, Mitch. It was just -- there was a question around the facility size of the...

Yes. So again, we -- in order to capture this potential upside, there would be multiple ways to do that. But certainly, we are -- in our bid documents, we have requested that they design facilities that would allow us to have a significant expansion through additional compression, which really is a matter of making sure we have enough real estate on the deck of the FPSO. This is very clean, really pipeline quality gas, it requires very little treatment. In fact, it would meet the pipeline spec as produced. So we are designing or requesting a design for the ability to expand later should we have success with some of this near-field appraisal stuff.

Great. Thank you, Mitch. We've had a few questions on Montara and Stag. So those are sort of can be grouped into, I guess, sort of 2 questions. The first of which is, what are the infill drilling opportunities at these assets. Secondly, the status of the potential Montara gas development we talked about in the past. And Mitch, also, there's a third question, which has come in live on Montara and Stag, just talking, I guess, at a high level about our ability to drive efficiencies into those assets, if you have anything to say on that.

This one is for you for sure.

Yes. You're going to have to start breaking these down into one at a time, Phil. But let me try to circle around all those. I penciled down a couple of notes. But first of all, on additional development opportunities at Montara and Stag, we do -- the teams have identified a few projects. Specifically, we have an additional target identified at Montara called the Skua-10 sidetrack. It's a similar concept to the Skua-11 well that we drilled earlier this year. What I would say on that is, at present, we're focused on integrating lessons learned from the Skua-11, feeding those into an updated assessment. And we're also at the front end of our annual and 3-year planning cycle. So we'll integrate all of the updated assessments along with the macro conditions that we foresee and see where that fits in the forward program. Similarly, at Stag, we've identified 2 infill opportunities and those will go through a similar process, and we'll be integrating that into our evaluation and capital allocation process in the 3-year planning process. But I would say it looks like -- it's unlikely those 2 would be drilled in 2026. Yet to be determined on the Montara project where it best fits. But One thing we're also looking at for both of those programs is to see if we can co-ordinate with other nearby drilling programs to capture some synergies on the cost side. So that would also play a factor in where they ultimately land in our capital allocation process. On the Montara gas cap, certainly could be quite an interesting project. We've identified approximately 350 Bcf between the Montara gas cap and the 3 satellite discoveries nearby. There are a couple potential export routes. So commercializing the gas would require some haulage on those systems and of course, cooperation from one of the nearby operators. So I'd say it's more of a midterm priority right now as we're continuing to focus on extending the economic life of the existing development at Montara. Still a fair bit of work to do to mature it fully and see if we can make it work, but it definitely has a lot of benefits if we can. So definitely on the radar, a bit more of a midterm priority, I would say. In terms of ability to drive efficiencies, that's such a broad question. It's hard to answer directly unless there's a little bit more color given to it. But yes is the short answer. The discipline that it takes to drive operational excellence in late-life assets is something that I've lived for a good part of my career -- in my previous career, spending 34 years at a large independent E&P where disciplined execution and high reliability traits and principles were ingrained throughout my career. So the team is looking at things like gas lift optimization. We're also looking at subsea optimizations to enhance the capability to flow the subsea wells. There's obviously cost control disciplines that go into managing costs in any business, but especially a late-life asset, commercial strategies around contracting and sharing with other nearby operations. So there's a whole host of things that we can do and are focused on doing to try to drive further improvements in the margin, either by increasing production or decreasing cost or both. And that will continue to be a focus going forward. It's not easy. It's hard work. These are offshore assets, and they have their own set of complexities and logistics, et cetera, to go with that. But they are all things that I've faced before, and we've got some really talented people there that are driving that sort of discipline and helping me instill the culture that I want to see there. And so yes, I think there are opportunities, and we'll continue to focus on them with great intent.

Great. Thank you, Mitch. The next question, I mean we've had several questions touching on the same theme about the progress of the RBL, reserve-based loan refinancing, and if we have any thoughts at this stage around potential structures and timing. So yes, maybe I'll pass that over to Andrew.

Yes, sure, Phil. Look, I think as I mentioned sort of previously, we're actively engaged in refinancing discussions. And whilst we won't be giving guidance as to potential timing or the structure of that, what I can say is, look, it's a priority, and we're devoting a lot of attention and time on this. But I don't think it's appropriate for us to start putting time lines and sort of specific structuring outputs there.

Thank you, Andrew. Now we've got a strategy question. I got a few questions around the M&A, business development outlook, specifically around what kind of opportunities are we assessing right now? Are those RBL refinancing dependent? And do we have any sort of particular focus or bias towards any of our particular core areas? So again, apologies Adel, [indiscernible] all wrapped up in that, but maybe I'll hand that over to you.

Thanks, Phil. This is a very good set of questions. I'll try to cover them again, just like Mitch said, if I missed something, just remind me. Look, like all companies, I will not go through a specific given opportunity, so we can remain competitive here. What I can say, I'm very pleased to confirm that the company's DNA hasn't changed. We are very heavily focused on M&A and the pipeline of opportunities that we have is very healthy. In terms of looking at the areas and regions and so forth, our focus has been specifically around opportunities where we see IOCs doing a turnover in the portfolio where some of these assets become less relevant to them as they move from a region to another or they have a shift in strategy from type of hydrocarbon to something else. We also have a strong focus on the success of some of our activities in Malaysia and in Indonesia, where we've been seen as a very strong operator and stakeholder in the region. We capitalize on that to further increase our footprint. We see the engagement with NOCs as vital in bilateral discussions to see if there's any of these assets that could make sense to come to our portfolio. As we assess these options here, we are going to be exceptionally rigorous in making sure that these opportunities are accretive prospects, the skills and the portfolios we have. We believe we have a very strong platform, as I mentioned earlier here, the expertise and the experience of our team is unmatched for the size of the company, being able to work onshore, offshore, late life as well as new assets is remarkable here and distribution between oil and gas is also phenomenal here. So we feel we are very well positioned to create further growth and shareholder value through the M&A process.

Great. Thank you, Adel. We have one question that has been submitted live today around the Akatara development, and let me just find that one. So the development of Akatara must have involved a lot of very skilled employees. How has the company managed to redeploy these important employees internally? Mitch, I don't know whether you have any thoughts on that particular question.

Yes, a couple. Of course, the heavy activity was last year during the commissioning phase and of course, the construction phase prior to that. And as these projects go, we -- and it was before my time, but Jadestone did like most would do and they hire an EPC contractor to engineer, procure and construct a facility like that. And so it's the contractor that brings in the vast majority of people. I believe there was well over 1,000 people on the project at one point, but they would have been contract employees. We, of course, had our own project management team and then have built up an operations organization. So on the project management team, we brought in folks from other regions, Malaysia or Australia and then hired some very talented people locally there in Indonesia. And of course, the operations team and a subset of that project management team still reside and manage this asset for us. So many of them are still in Indonesia and some where we've decided to instill some of the brightest minds, brightest operating minds we have in the company, we have moved down to Australia to help us drive the operational excellence in the late-life asset management there. So it's a combination of a number of things, but recruited a lot of great local talent, brought in some folks from other regions and put them back into their home locations in some case and also moved a few down to Australia to help us continue to drive improvements in that business.

Great. Thank you, Mitch. And Jake, I think we're running up against the scheduled hour and running through all of the questions that we've had presubmitted and live today. I think we've covered all of the relevant points. So I will hand it over to Adel to finish.

Thank you, Phil. And I want to, of course, thank Jake for moderating this platform. I also want to thank our investors and participants for their continued support. With that, I would like to conclude this webinar.

Perfect, guys. That's great. And thank you very much indeed for updating investors this afternoon. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order the management team can better understand your views and expectations. This will only take a few moments to complete, but I'm sure it will be greatly valued by the company. On behalf of the management team of Jadestone Energy plc, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all.