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Energy

Jadestone Energy cost update sees shares fall 13%

Shares of Jadestone Energy PLC (AIM:JSE), the mid-cap oiler, were off 13% in early trade after it revealed the expenditure associated with two key fields would be higher than anticipated.

Specifically, operating costs for its Montara and Stag assets would be around US$95 million and US$65 million respectively. Peel Hunt, for example, had previously been estimating totals of US$65 million and US$40 million.

"This increase is due to general industry inflation, in addition to higher levels of repair and maintenance activity being assumed," the broker said in a note to clients.

At 8.49 am, the shares were changing hands for 32.16p, down 4.64p.