Jadestone says production "robust" as East Belumut beats expectations

(Alliance News) - Jadestone Energy PLC shares rose on Monday after the company announced the ...

Alliance News 4 December, 2023 | 2:26PM
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(Alliance News) - Jadestone Energy PLC shares rose on Monday after the company announced the completion of the East Belumut field's final well, as well as "significant revenues" from recent liftings.

Shares in Jadestone were trading 8.1% higher at 37.85 pence on Monday afternoon in London.

The Asia-Pacific region-focused oil and gas company said overall production has remained robust since its most recent announcement in mid-November, averaging approximately 20,000 barrels of oil equivalent per day.

The company added that overall production has averaged about 14,900 boe/d since April 1, equating to an average of around 13,500 boe/d in the year to date.

Jadestone also said it is currently testing the fourth and final well created in its infill drilling campaign at the East Belumut field in offshore Malaysia. At around 4,600 metres deep it is "the longest reach horizontal well ever drilled in the field", following more drilling than originally planned after Jadestone encountered a better than expected oil column.

Jadestone expects the fourth well to produce at initial rates in excess of 3,500 barrels of oil per day. The other three are currently producing at an aggregate gross rate of around 7,000 barrels per day. This has "far exceeded expectations", as the East Belumut infill campaign was originally forecast to produce at initial gross aggregate rates of 3,500 barrels per day.

"This is our core strategy at work, having acquired the interests in 2021 and now starting to add value through our differentiated view of the subsurface potential," commented Chief Executive Officer Paul Blakeley. "These results will significantly expand the scope for further infill drilling on East Belumut and I expect will generate a number of well campaigns for the future."

Jadestone said the unexpectedly high production from East Belumut, as well as its other Peninsular Malaysia assets, was a primary driver of its "robust" overall production. It also noted average production of about 7,500 barrels per day from the Montara project in offshore Western Australia.

Jadestone also said the Akatara project in Sumatra, Indonesia is currently 87% complete and remains on schedule for first gas before mid-2024.

Finally, Jadestone said it has lifted approximately 1.4 million barrels of oil equivalent since the start of the fourth quarter of 2023, "generating significant revenues". Jadestone also expects to lift a further 370,000 this month, and to receive the proceeds before the end of the year.

By Emma Curzon, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Jadestone Energy PLC 23.75 GBX 3.26 -

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