Jadestone Energy hails impact of Montara asset acquisition amid guidance update

Writer, Stock Market Wire
Wednesday, March 6, 2019 - 09:48

Jadestone Energy said the acquisition of the Montara asset, offshore Australia, tripled production as the company provided guidance for the current year.

For 2019, the company said it expected average crude oil production to be between 13,500-15,500 barrels a day, with average unit production costs of $21 to $24 barrels.

Capital and other major offshore spending was expected in a range of $116-$131m.

Average production for February 2019 was 15,369 barrels a day, following some 'flush production from Montara restart and continued natural flow from wells Skua-11 and Swift-2,' the company said. The regulatory acceptance of Jadestone's safety case for the Montara asset and change of operatorship was expected to be announced in second quarter 2019, the company said.

'Jadestone is a dramatically different company compared to this time last year. Following our acquisition of the Montara asset, offshore Australia, we have tripled production, all of it high quality premium-priced oil from offshore Australia, and are making good progress on a significant development project in Vietnam, which we expect to sanction this year,' said Paul Blakeley, President and CEO.

'Meanwhile, we continue to make excellent progress toward development sanction of the Nam Du and U Minh gas fields offshore Vietnam, providing strong growth, further value crystallisation from within the portfolio and a diversification of product mix towards fixed price, long-term gas contracts. We are forecasting completion of FEED, gas sales agreement negotiations, and major contract tendering, leading to formal FID, all within the year.'

'Collectively, the catalysts we are forecasting for 2019 put us well on our way toward achieving our longer-term goal of growing to a circa 30,000 boe/d producer by 2023, with our existing asset base.' At 9:48am: (LON:JSE) Jadestone Energy Inc Com Shs Npv Di share price was +0.2p at 40.6p

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