By Christian Moess Laursen
Shares in Jadestone Energy rose 12% after the company said it has increased its borrowing capacity for the next sixth months, ensuring significant liquidity ahead of its Indonesian Akatara field starting production.
At 0826 GMT, shares are up 3.45 pence at 32.25 pence.
The oil-and-gas company said Monday that its borrowing capacity will be $200 million in the six months to March 31, up from $190 million.
For the subsequent six-month period, its borrowing capacity will be $150 million, more than the $99 million previously forecast.
The company said the increased borrowing capacity is a result of it raising the development cap at its Akatara project to 60% from 40%, boosting its liquidity ahead of production starting.
After Akatara–currently 70% complete–starts, the company’s borrowing base availability is expected to increase further as it moves into a period of high cash generation, in turn supporting growth ambitions, it said.
“We are focused on sustaining this momentum over the remainder of 2023 and into 2024, underpinning our aim of significant production and cash-flow growth in the near-term,” Chief Executive Paul Blakeley said.
Write to Christian Moess Laursen at [email protected]
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