Jadestone Energy plc, 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.
Operational Update
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.”