Jadestone Energy achieves annual daily production target

Asia-Pacific-focussed oil and gas production company Jadestone Energy updated the market on its operations and guidance for 2021 on Thursday, reporting that it achieved the target of delivering around 20,000 barrels of oil equivalent of production per day by year-end.

The AIM-traded firm said that was driven by a “strong performance” from the Montara H6 well, and initial flows from Skua-11, post-workover.

It said average annual production for 2021 was expected to be around the midpoint of the 11,500 to 13,500 barrels of oil equivalent per day guidance range.

The company’s unit production cost guidance remained unchanged at $25.50 to $29.50 per barrel of oil equivalent, with unit operational expenditure at year-end expected to be “significantly below” the lower end of that range, due to recent increases in production.

Major spending was now expected to be toward the upper end of the previous guidance range of $105m to $115m, as a result of additional work undertaken to successfully complete the Montara activity programme.

“We are very pleased to be concluding the Montara activity programme with no safety incidents to date, and, with the addition of Skua-11 production, we have already met our target of delivering 20,000 barrels of oil equivalent per day of production by year-end 2021,” said president and chief executive officer Paul Blakeley.

“We now expect to reap the benefits of higher production and attractive pricing, given ongoing oil price strength, our unhedged position and recent improvements in the Tapis differential.”

At 1154 GMT, shares in Jadestone Energy were up 1.24% at 80.99p.