Jadestone Energy has announced that it has increased its borrowing capacity for the next six months, providing significant liquidity as it prepares for the start of production at its Indonesian Akatara field. This news has led to a 12% increase in the company's shares.
As of 0826 GMT, Jadestone Energy's shares have risen by 3.45 pence to reach 32.25 pence.
The oil-and-gas company revealed on Monday that its borrowing capacity will now stand at $200 million for the period up to March 31, an increase from the previous amount of $190 million.
Furthermore, Jadestone Energy's borrowing capacity for the following six months will be $150 million, surpassing the previously forecasted figure of $99 million.
The boost in borrowing capacity can be attributed to the company's decision to raise the development cap at its Akatara project from 40% to 60%. This move aims to enhance liquidity and support the upcoming production phase.
Once the Akatara project, which is currently 70% complete, commences, Jadestone Energy anticipates a further increase in its borrowing base availability. This development will coincide with a period of high cash generation, which will help fuel the company's growth ambitions.
Chief Executive Paul Blakeley expressed confidence in sustaining this positive momentum throughout 2023 and into 2024. The goal is to achieve significant production and cash-flow growth in the near-term.