Oil & gas firm Jadestone Energy Inc said Thursday its Stag offshore oilfield in Australia was now in production following drilling earlier in May.
The Stag 49H infill well produced its first oil on Tuesday and - after a "brief" clean-up period - was producing at a rate of 1,400 barrels of oil per day. This confirmed its confidence in delivering 1.2 million barrels of 2P oil reserves.
"I'm delighted to have safely and successfully completed our first infill well at Stag," Jadestone Chief Executive Paul Blakeley said. "This is another important milestone for Jadestone."
"When we acquired the field in July 2016, we recognised several opportunities to add value, including streamlining logistics and operations, improving uptime and, most importantly, adding additional barrels through infill drilling," Blakeley added.
"The 49H infill well further validates our re-investment thesis and serves to enhance near-term cash flow, reduce unit opex and extend the productive life of the field," Blakeley continued. "Moreover, we have enhanced our understanding of the reservoir, which plays into further drilling opportunities, and we continue to seek new opportunities to add value to the asset, particularly as we begin to realise economies of scale with our other Australia operations."
Shares in Jadestone were unchanged at 56.50 pence on Thursday, up 67% since the start of 2019.
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