Jadestone jumps as it works on re-start at Montara

(Sharecast News) - Asia-Pacific-focussed independent oil and gas producer Jadestone Energy said in an update on Wednesday that DNV's independent review of its remediation plans and operational readiness for the Montara Venture FPSO had been completed and submitted to Australian authorities, as required by the General Direction issued in September.

The AIM-traded firm described it as a "major step" toward restoring production at Montara, with the company anticipating that all offshore activities associated with the programme of hull and tank inspection, repair and maintenance would be completed to achieve operational readiness "within weeks".

"In addition, work required as part of the planned maintenance programme for 2023 is being carried out in parallel with the tank activities, and production is therefore expected to recommence during February," the board said in its statement.

At Stag Field, meanwhile, Jadestone said that in late 2022, the Stag-50H and 51H wells were brought successfully onstream at an aggregate initial rate of around 2,000 barrels of oil per day, in line with expectations.

"The infill wells involved the drilling of a combined horizontal section of approximately 3,200 metres.

"The success of the 50H and 51H wells validates the Stag Field development strategy and enhances confidence in several additional infill well locations which are already being developed for possible future drilling.

"Once planned workover activity, which is currently underway, has been completed, field production is expected to increase towards around 4,000 barrels per day."

Jadestone said it would issue a trading statement covering its 2022 operational and financial performance in early February.

The company's 2023 operational and financial guidance would be announced once the Montara Project had resumed production.

Its audited 2022 financial results, meanwhile, would be published in April, while its annual and sustainability reports were expected to be published in May.

At 1430 GMT, shares in Jadestone Energy were up 8.29% at 77.1p.

Reporting by Josh White for Sharecast.com.