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Oil and gas production company Jadestone Energy lowered guidance after deferring its Australia infill drilling campaign into 2021 as the current slump in oil prices forced further cuts to capital spending.
With the delay in the Australian infill wells, the company said it was now targeting a 2020 average production range of 12,000-to-14,000 barrels a day.
'This delay aims to best align capital spending with a strengthening oil price environment, maximising potential future returns, while preserving the Company's balance sheet and net cash position,' the company said.
The delay comes after the company announced last month that it would defer the Nam Du and U Minh development project.
Collectively, these measures represented a reduction of 80% of the company's originally planned 2020 spending, resulting in anticipated total capex of US$30-to-35m in 2020, of which approximately US$15.5m had already been spent in the first quarter of 2020, the company said.
'Notwithstanding these changes, production is still expected to grow by circa 25% in 2021 with the addition of the Maari project, offshore New Zealand, which remains accretive to the portfolio and which continues through the transition process,' the company said .
At 9:31am: (LON:JSE) Jadestone Energy INC share price was 0p at 34.5p