Jadestone Energy commences production at Montara H6 development well

Independent oil and gas producer Jadestone Energy said on Tuesday that its Montara H6 development well had been successfully tied into field facilities and commenced production.

Jadestone stated the well delivered an initial rate, after clean-up, approaching 10,000 barrels per day and, following a period of well performance testing, will be stabilised at around 3,000 barrels per day, as per guidance.

The AIM-listed group added that the Valaris 107 rig had now made "the short move" to the Skua-10 and Skua-11 workover location, with operations on Skua-11 having already commenced.

Chief executive Paul Blakeley said: "The Montara H6 well is an important milestone in our investment strategy for the Montara assets, confirming our view of the Montara reservoir, and providing near-term growth. It not only delivers a significant increase in oil production but is also a key step in our plan to deliver circa 20,000 boe/d towards the end of this year.

"Higher production coincides with continued strength in oil prices, to which we are fully exposed given our unhedged position. As a result, our balance sheet continues to strengthen, providing the platform from which to execute on further growth through investment in both the existing portfolio as well as further M&A."

As of 1035 BST, Jadestone shares were up 5.65% at 88.75p.