Montara Operations Update
10 August 2023 – Singapore: Jadestone Energy plc (“Jadestone”, or the “Company”) an independent oil and gas production company focused on the Asia-Pacific region, provides the following update on operations at the Montara Venture FPSO offshore Australia.
As previously reported on 31 July 2023, production at Montara was temporarily shut in following a gas alarm within the FPSO’s 4S ballast water tank.
Since then, tank 4S has been emptied and cleaned, with an inspection commencing on 8 August 2023. The initial inspection has identified the location of a small defect between tank 4S and oil cargo tank 5C, which poses no safety or structural risk, nor any risk of a hydrocarbon leak to sea.
The Company is now focused on the following activities to address the defect in tank 4S, including:
- final inspections in ballast water tank 4P prior to returning this tank to service as part of the overall ballast and stability requirements for the FPSO;
- offloading crude oil from tank 5C to allow for cleaning and access to permit an inspection; and
- re-entry to 4S to finalise the inspection of the tank and carry out the necessary repair.
The Company continues to keep key stakeholders, including the National Offshore Petroleum Safety and Environmental Management Authority (“NOPSEMA”) and its reserve-based lending (“RBL”) facility banks, regularly updated on these activities. The RBL includes the requirement for borrowing base assets, such as Montara, not to have production interrupted for a continuous period of 60 days or more. The Company will also be working with the RBL banks to assess how the shut in might impact the clauses and covenant under the RBL facility.
The Company will continue to update shareholders as appropriate.
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About Jadestone Energy
Jadestone Energy plc is an independent oil and gas company focused on the Asia-Pacific region. It has a balanced and increasingly diversified portfolio of production and development assets in Australia, Malaysia, Indonesia, Thailand and Vietnam, all stable jurisdictions with a positive upstream investment climate.
Led by an experienced management team with a track record of delivery, who were core to the successful growth of Talisman Energy’s business in Asia-Pacific, the Company is pursuing a strategy to grow and diversify the Company’s production base both organically, through developments such at Akatara in Indonesia and Nam Du/U Minh in Vietnam, as well as through acquisitions that fit within Jadestone’s financial framework and play to the Company’s strengths in managing maturing oil assets. Jadestone delivers value in its acquisition strategy by enhancing returns through operating efficiencies, cost reductions and increased production through further investment.
Jadestone is a responsible operator and well positioned for the energy transition through its increasing gas production, by maximising recovery from existing brownfield developments and through its Net Zero pledge on Scope 1 & 2 GHG emissions from operated assets by 2040. This strategy is aligned with the IEA Net Zero by 2050 scenario, which stresses the necessity of continued investment in existing upstream assets to avoid an energy crisis and meet demand for oil and gas through the energy transition.
Jadestone Energy plc (LEI: 21380076GWJ8XDYKVQ37) is listed on the AIM market of the London Stock Exchange (AIM: JSE). The Company is headquartered in Singapore. For further information on the Company please visit www.jadestone-energy.com.
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.