Jadestone Energy, an independent oil and gas production company focused on the Asia-Pacific region, provides the following operational update.

Montara

The Company is pleased to announce that, following an investigation and assurance review into the 4S/5C tank defect, it intends to restart production at Montara on 1 September 2023.

Production will be restarted from one well at an expected rate of c.1,000 bbls/d to recommission the FPSO’s oil production system, followed by gas compression, allowing further wells to be brought back online within several days. At this point, production is expected to increase to c.6,000 bbls/d, the rate prior to the shutdown at the end of July 2023.

The Company will continue to utilise a shuttle tanker to provide additional storage during this period of constrained FPSO storage capacity.

Further to the announcement on 23 August 2023, FPSO tank inspection and repair work has continued to make progress, with the following activities taking place:

• Repairs in ballast water tank 4P are almost complete, after which it will be returned to service.
• Inspections and preparations for repair work are now underway in tank 5C and ballast water tank 4S.

The defects encountered pose no safety or structural risk, nor any risk of a hydrocarbon leak to sea.

The National Offshore Petroleum Safety and Environmental Management Authority has been kept regularly updated on progress at Montara.

Akatara

The Akatara development continues to make good progress, and remains on budget and schedule for first gas in H1 2024. The project is currently c.55% complete (from c.42% in mid-July 2023) with c.2.5 million man hours worked without a lost-time incident.

Malaysia

On 15 August 2023, the Naga-2 rig was taken on contract for the East Belumut field drilling campaign on the PM323 PSC. Drilling operations on the first of the four wells has commenced. The four wells are expected to deliver incremental gross peak oil production of 2-2,500 bbls/d with a projected IRR of c.90%.

Montara Project

Jadestone is the 100% owner and operator of the producing Montara Project, located in production licences AC/L7 and AC/L8 in the Timor Sea, approximately 690 kilometres west of Darwin, 630 kilometres north of Broome and 250 kilometres north-west from the Kimberley coastline of Western Australia in a water depth of 77 meters. The Montara Project fields are situated in the prolific Vulcan Sub-basin. Production in the first half of 2022 averaged 7,509 bbls/d.

KeyFacts Energy: Jadestone Energy Australia country profile