Operational update – 20,000 boe/d year-end target achieved
16 December 2021 – Singapore: Jadestone Energy plc (the “Company”), an independent oil and gas production company focused on the Asia-Pacific region, is pleased to provide the following update on operations and Company guidance for 2021.
• Achieved the target of delivering around 20,000 boe/d of production by year-end 2021, driven by strong performance from the Montara H6 well and initial flows from Skua-11 post workover.
• 2021 average annual production expected to be around the midpoint of the 11,500-13,500 boe/d guidance range.
• 2021 unit production cost guidance is unchanged at US$25.50–29.50/boe, with unit opex at year-end expected to be significantly below the lower end of this range due to the recent increase in production.
• 2021 major spending is now expected to be toward the upper end of the previous guidance range of US$105-115 million, as a result of additional work undertaken to successfully complete the Montara activity programme.
During the fourth quarter of 2021 to date, Company production has averaged approximately 17,800 boe/d. This has been largely driven by strong performance from Montara, reflecting ongoing steady production from the Montara H6 infill well and, more recently, the addition of Skua-11 following its successful workover, which included reperforating the heel of the well with the aim of enhancing its production potential.
Production from Montara has been impacted by some rig-related downtime at the field associated with the activity programme. The Skua-11 workover also took longer than anticipated due to the need to replace the subsea tree, while a downhole component failed to function at the later stages of the Skua-10 activity. However, the Skua-10 workover operation is now practically complete, with the Montara subsea wells currently shut in to facilitate the rigging down and hook-up of the Skua-10 well and safe departure of the rig. Prior to this shutdown, group production averaged 20,000 boe/d over a five day period and is expected to increase further once both of the Skua wells are brought back onstream.
Paul Blakeley, President and CEO commented:
“We are very pleased to be concluding the Montara activity programme with no safety incidents to date, and, with the addition of Skua-11 production, we have already met our target of delivering 20,000 boe/d production by year-end 2021. We now expect to reap the benefits of higher production and attractive pricing, given ongoing oil price strength, our unhedged position and recent improvements in the Tapis differential.”
For further information, please contact:
|Jadestone Energy plc|
|Paul Blakeley, President and CEO||+65 6324 0359 (Singapore)|
|Dan Young, CFO|
|Phil Corbett, Investor Relations Manager||+44 7713 687467 (UK)|
|Stifel Nicolaus Europe Limited (Nomad, Joint Broker)||+44 (0) 20 7710 7600 (UK)|
|Jefferies International Limited (Joint Broker)||+44 (0) 20 7029 8000 (UK)|
|Camarco (Public Relations Advisor)||+44 (0) 203 757 4980 (UK)|
About Jadestone Energy
Jadestone Energy plc is an independent oil and gas company focused on the Asia-Pacific region. It has a balanced, low risk, full cycle portfolio of development, production and exploration assets in Australia, Malaysia, Indonesia, Vietnam and the Philippines.
The Company has a 100% operated working interest in the Stag oilfield and in the Montara project, both offshore Australia. Both the Stag and Montara assets include oil producing fields, with further development and exploration potential. The Company also has interests in four oil producing licences offshore Peninsula Malaysia; two operated and two non-operated positions. Further, the Company has a 100% operated working interest in two gas development blocks in Southwest Vietnam, and an operated 100% interest (assuming completion of the Hexindo stake acquisition, as announced in November 2021) in the Lemang PSC, onshore Sumatra, Indonesia, which includes the Akatara gas field.
In addition, the Company has executed a sale and purchase agreement to acquire a 69% operated working interest in the Maari Project, shallow water offshore New Zealand, and is working with the seller to obtain final New Zealand government approvals.
Led by an experienced management team with a track record of delivery, who were core to the successful growth of Talisman’s business in Asia, the Company is pursuing an acquisition strategy focused on growth and creating value through identifying, acquiring, developing and operating assets in the Asia-Pacific region.
Jadestone Energy plc is listed on the AIM market of the London Stock Exchange. The Company is headquartered in Singapore. For further information on the Company please visit www.jadestone-energy.com.
This announcement may contain certain forward-looking statements with respect to the Company’s expectations and plans, strategy, management’s objectives, future performance, production, reserves, costs, revenues and other trend information. These statements are made by the Company in good faith based on the information available at the time of this announcement, but such statements should be treated with caution due to inherent risks and uncertainties. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this announcement should be construed as a profit forecast. Past share performance cannot be relied upon as a guide to future performance. The Company does not assume any obligation to publicly update the information, except as may be required pursuant to applicable laws.
Henning Hoeyland of Jadestone Energy plc, a Subsurface Manager with a Masters degree in Petroleum Engineering, who is a member of the Society of Petroleum Engineers and who has been involved in the energy industry for more than 20 years, has read and approved the technical disclosure in this regulatory announcement.
This announcement does not contain inside information.