Jadestone Energy provides an update on the drilling of the Skua-11ST well at the Montara field offshore Australia.

Skua-11ST Drilling Update

The Skua-11ST well has reached target depth, with analysis confirming the presence of over 900 meters of high-quality reservoir, more than double the reservoir section completed in any of the previous Skua wells.  As a result, initial production rates are expected to exceed previously disclosed estimates of 3,500 bbls/d. Well operations are nearing completion, and following demobilisation of the drilling rig, the Skua-11ST well is expected to be brought onstream in early August 2025.

As previously disclosed, the Skua-11ST campaign has taken longer than originally planned. The total capital cost of the Skua-11ST well is now estimated at approximately US$96-100 million, compared to the US$70 million expected cost disclosed in May 2025.  Several factors outside Jadestone’s control resulted in the well cost increase, including significant weather events and changes to the demobilization plan which have added an estimated US$13-14 million. Additionally, operational factors during drilling required additional rig days and account for the remainder of the incurred incremental cost.

T. Mitch Little, Chief Executive Officer of Jadestone, commented:
“The Skua-11ST drilling campaign is nearing its conclusion, and I want to recognize the safe and environmentally responsible way the program has been executed to date.  We look forward to Skua-11ST adding meaningful volumes to Group production once tied in, which will immediately reduce unit operating costs at Montara and extend field life by a year. This will add to our previously announced cost management initiatives that we intend to expand to other parts of the Group.

Learnings from this drilling campaign will be integrated into the planning of any future wells in the Skua area, as part of my broader focus on driving operational excellence to both improve project delivery and enhance margins across the business.”

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 630 kilometres offshore Western Australia, in a water depth of 77 meters. The Montara fields are situated in the prolific Vulcan Sub-basin.

Montara operations involve the production of oil using platform production wells for the Montara field and subsea wells for the Swift, Skua and Swallow fields. The oil from the subsea wells is piped via subsea flowlines to an unmanned wellhead platform and then to the Montara Venture owned floating production storage and offloading (FPSO) facility, which acts as a hub for the Montara fields, and potentially other stranded discoveries in the region.

Producing sandstone formations include the prolific Plover, Montara and Lower Vulcan reservoirs. All producing formations have high permeability (0.5 – 4 Darcy) and high porosity (18 – 24 per cent).

In 2024, gross production from the Montara Project averaged 5,262 bbls/d. As at 31 December 2024, the Montara Project fields were estimated to contain gross 2P reserves of 11.5 mmbbls.

Within the AC/L7 and AC/L8 licences and surrounding acreage, there are existing oil and gas discoveries which are not economic on a standalone basis. Currently, the Montara Project contains the only infrastructure in the area through which these discoveries could realistically be produced. Jadestone may, in the future, explore opportunities to monetise these assets which may be through acquisition, farm-in, divestment and/or third party tariff arrangements, as well as subject to pricing, technology and third-party activities.

The nearby Shell-operated Crux gas field, which is located approximately 30 km south of the Montara Project, is being developed as long-term backfill for the Prelude floating LNG facility located offshore Western Australia. The Crux field infrastructure could represent a viable export option for the significant undeveloped gas resource within the Montara licences.

KeyFacts Energy: Jadestone Energy Australia country profile