Montara Operations Update

RNS Number : 1364Z

Jadestone Energy PLC

12 September 2022

 

Montara Operations Update

12 September 2022-Singapore: Jadestone Energy plc ("Jadestone", or the "Company") an independent oil and gas production company focused on the Asia-Pacific region, provides the following update on the operational status of the Montara Venture FPSO (the "FPSO").

Following the shut-in of Montara production announced on 12 August 2022, Jadestone has been progressing a remediation plan for the FPSO's hull and tanks and regularly updating the National Offshore Petroleum Safety and Environmental Management Authority ("NOPSEMA") on these activities.  This plan aims to deliver operational readiness to ensure a safe and reliable restart of the FPSO.

Earlier today, NOPSEMA issued a general direction to the Company, which requires that Jadestone engages an independent reviewer to undertake a gap recognition review, and assure Jadestone's remediation plans and operational readiness prior to the restart of production operations.  The independent reviewer's report will be considered by NOPSEMA prior to the restart of production through the FPSO.

The Company will provide a further update on its Montara FPSO remediation plans at its half-year 2022 results scheduled for 20 September 2022.

At this stage, the Company is not in a position to provide guidance on a possible Montara production restart date. As a result, the Company expects that 2022 production could average approximately 13,000 boe/d if production were restored in line with previous guidance, or closer to an average of approximately 11,000 boe/d if the restart were towards the end of 2022.

Paul Blakeley, President and CEO commented:

"We have shut-in production at Montara to focus exclusively on a remediation plan, and have accelerated the inspection and repair activity through prioritising additional maintenance crew offshore. In addition, plans to increase longer-term accommodation space on the FPSO are underway. 

This will deliver a high-level of confidence to all stakeholders in the structural integrity of the Montara FPSO, and allow for a safe and reliable restart of production.  Going forward, we will be reviewing the way we approach inspection and repair on the FPSO's hull and tanks, with a firm intention to prevent similar occurrences of unplanned downtime in the future.  

We have made significant progress in restoring the FPSO to the standard which we expect while improving its reliability.  We are looking forward to safely delivering the remediation plan, resuming production and restoring confidence in Montara, further adding to the considerable value we have already delivered from the asset since acquisition."

For further information, please contact:

Jadestone Energy plc
Paul Blakeley, President and CEO Bert-Jaap Dijkstra, CFO	[phone] (Singapore)
Phil Corbett, Investor Relations Manager	[phone] (UK)
	[e-mail]
Stifel Nicolaus Europe Limited (Nomad, Joint Broker)	[phone] (UK)
Callum Stewart
Jason Grossman
Ashton Clanfield
Jefferies International Limited (Joint Broker)	[phone] (UK)
Tony White
Will Soutar
Camarco (Public Relations Advisor)	[phone] (UK)
Billy Clegg Georgia Edmonds	[e-mail]
James Crothers

About Jadestone Energy

Jadestone Energy plc is an independent oil and gas company focused on the Asia-Pacific region.  It has a balanced, low risk, full cycle portfolio of development, production and exploration assets in Australia, Malaysia, Indonesia and Vietnam.

The Company has a 100% operated working interest in the Stag oilfield and in the Montara project, both offshore Australia. Both the Stag and Montara assets include oil producing fields, with further development and exploration potential.  The Company also has interests in four oil producing licences offshore Peninsular Malaysia; two operated and two non-operated positions.  Further, the Company has a 100% operated working interest in two gas development blocks in Southwest Vietnam, and an operated 100% interest (assuming completion of the Hexindo stake acquisition, as announced in November 2021) in the Lemang PSC, onshore Sumatra, Indonesia, which includes the Akatara gas field development.

In addition, the Company has executed a sale and purchase agreement ("SPA") to acquire a 16.67% working interest in the North West Shelf Oil Project, offshore Western Australia, which is expected to complete in the fourth quarter of 2022. The Company has also signed an SPA to acquire a 69% operated working interest in the Maari Project, shallow water offshore New Zealand, and is working with the seller to obtain final New Zealand government approvals. 

Led by an experienced management team with a track record of delivery, who were core to the successful growth of Talisman's business in Asia, the Company is pursuing an acquisition strategy focused on growth and creating value through identifying, acquiring, developing and operating assets in the Asia-Pacific region.

Jadestone Energy plc is listed on the AIM market of the London Stock Exchange.  The Company is headquartered in Singapore.  For further information on the Company please visit www.jadestone-energy.com .

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.

 

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