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Energy

Jadestone Energy predicts significant production uplift in 2019

Average production will be between 13,500-15,500 barrels per day

Australia- focused oil group Jadestone Energy PLC (LON:JSE) expects output will double this year as production from its two fields offshore Australia ramps up.

Average production will be between 13,500-15,500 barrels per day, said the AIM and Australia-listed group, compared to an average 7,615 barrels in 2018.

READ: Jadestone Energy makes premium debut in London

Production was running higher than that forecast in February due to flush production from a restart at Montara in the Timor Sea.

Over the coming year, Jadestone has in-fill wells planned at Montara and Stag, its other producing asset offshore Australia.

This new well at Stag will be the first on the field in six years and will add material production and significantly reduce unit operating costs, said the statement.

Capital and significant offshore spending will be in a range of US$116-131mln.

Jadestone also expects to get the go-ahead for the Nam Du and U Minh gas fields offshore Vietnam.

Paul Blakeley, Jadestone’s chief executive, said "We are forecasting completion of FEED, gas sales agreement negotiations, and major contract tendering, leading to formal FID, all within the year.

"Collectively, the catalysts we are forecasting for 2019 put us well on our way toward achieving our longer-term goal of growing to a circa 30,000 boe/d producer by 2023, with our existing asset base."

Shares rose to 40.6p.

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