14th Jul 2025 11:17
(Alliance News) - Jadestone Energy PLC on Monday said its production rates will exceed expectations after the Skua-11ST well at the Montara field offshore Australia reached target depth despite higher costs.
The Asia-Pacific focused production and development company said analysis has confirmed the presence of over 900 metres of "high-quality reservoir", which is over double the reservoir section of any previous Skua well.
As a result, Jadestone said it forecasts initial production rates to exceed the previous estimate of 3,500 barrels per day.
It expects the well to be brought onstream early in August.
"As previously disclosed, the Skua-11ST campaign has taken longer than originally planned," Jadestone noted.
It said the total capital cost of the well is now estimated between USD96 million and USD100 million, ahead of the expected USD70 million disclosed in May.
The firm said extra costs have been added by significant weather events and changes to the demobilisation plan. Further expenditure stemmed from additional rig days during drilling due to "operational factors".
"We look forward to Skua-11ST adding meaningful volumes to group production once tied in, which will immediately reduce unit operating costs at Montara and extend field life by a year. This will add to our previously announced cost management initiatives that we intend to expand to other parts of the group," said Chief Executive Officer T Mitch Little.
"Learnings from this drilling campaign will be integrated into the planning of any future wells in the Skua area, as part of my broader focus on driving operational excellence to both improve project delivery and enhance margins across the business."
Shares in Jadestone Energy were down 4.5% at 19.43 pence in London on Monday morning.
By Michael Hennessey, Alliance News reporter
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