Montara Restart Plan and Operations Update
31 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 operational update.
The Company is pleased to announce that, following an investigation and assurance review into the 4S/5C tank defect, it intends to restart production at Montara on 1 September 2023.
Production will be restarted from one well at an expected rate of c.1,000 bbls/d to recommission the FPSO’s oil production system, followed by gas compression, allowing further wells to be brought back online within several days. At this point, production is expected to increase to c.6,000 bbls/d, the rate prior to the shutdown at the end of July 2023.
The Company will continue to utilise a shuttle tanker to provide additional storage during this period of constrained FPSO storage capacity.
Further to the announcement on 23 August 2023, FPSO tank inspection and repair work has continued to make progress, with the following activities taking place:
- Repairs in ballast water tank 4P are almost complete, after which it will be returned to service.
- Inspections and preparations for repair work are now underway in tank 5C and ballast water tank 4S.
The defects encountered pose no safety or structural risk, nor any risk of a hydrocarbon leak to sea.
The National Offshore Petroleum Safety and Environmental Management Authority has been kept regularly updated on progress at Montara.
Further updates on Montara will be provided as activity progresses.
The Akatara development continues to make good progress, and remains on budget and schedule for first gas in H1 2024. The project is currently c.55% complete (from c.42% in mid-July 2023) with c.2.5 million man hours worked without a lost-time incident.
On 15 August 2023, the Naga-2 rig was taken on contract for the East Belumut field drilling campaign on the PM323 PSC. Drilling operations on the first of the four wells has commenced. The four wells are expected to deliver incremental gross peak oil production of 2-2,500 bbls/d with a projected IRR of c.90%.
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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.