Jadestone Energy provides the following update on operations and Company guidance for 2021.

Highlights

• 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.”

Montara

Jadestone is the 100% owner and operator of the producing Montara project, located in Production Licences AC/L7 and AC/L8 in the Timor Sea, approximately 690 kilometres west of Darwin, 630 kilometres north of Broome and 250 kilometres north-west from the Kimberley coastline of Western Australia in water depth of 77 meters. The Montara fields are situated in the prolific Vulcan Sub-basin.

KeyFacts Energy: Jadestone Energy Australia country profile