Jadestone Energy has re-commissioned the Montara project following tank repair and planned maintenance activities.
The independent oil and gas producer focused on the Asia-Pacific region noted that this affected its output for the first quarter of 2023, but it appears optimistic for the rest of the year.
“In the first quarter of 2023, production has been affected by tank repair and planned maintenance activities at Montara, resulting in an average of just over 10,000 boe/d for the quarter. Our guidance for the remaining nine months of the year is 13,500 to 17,000 boe/d, reflecting a return to routine operations at Montara and the inclusion of Sinphuhorm,” said Paul Blakeley, Jadestone President and CEO Energy.
He further noted that the midpoint of the guidance represents growth of 33 percent over 2022 and 22 percent over 2021, the latter being Montara’s most recent year of full production.
“Malaysia’s infill well campaign in the second half of 2023, and the addition of Akatara production starting in the first half of next year, should add 5,000 boe/d more than, compared to the 2023 midpoint, it represents a further 33. percent increase,” Blakeley said.
“We also anticipate adding to this growth profile through our very active portfolio of M&A opportunities. Jadestone achieved a 45% year-over-year increase in 2P reserves by 2022, providing a nearly six-fold replacement of production during the year, demonstrating the success of our acquisition-driven growth strategy and the quality of our asset base, particularly in the Akatara development, which underpins near-term production growth.” Blakeley concluded.
Looking ahead, the company expects its underlying operating costs to rise to $180-210 million, up six percent year-over-year. Capital expenditure guidance for 2023 is expected to be $110-140 million, the largest investment program in the company’s history.
As of December 31, 2022, the group had proven more probable oil reserves (2P Reserves) of 64.8 Mmboe, a 45 percent increase compared to year-end 2021 and a nearly six-fold replacement of the production during the year.
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