Jadestone Energy PLC (AIM:JSE) shares were up 10% after the independent oil and gas producer gave an operational update on two of its offshore Australia assets.
The AIM-traded company said an independent review of its remediation plans and operational readiness for the Montara project’s floating production storage and offloading (FPSO) has been completed and submitted, as required, to the Australian regulator, the National Offshore Petroleum Safety and Environmental Management Authority.
“This is a major step toward restoring production at Montara, and the company anticipates that all offshore activities associated with the comprehensive programme of hull and tank inspection, repair and maintenance will be completed in order to achieve operational readiness within weeks,” the company said in a statement.
“In addition, work required as part of the planned maintenance programme for 2023 is being carried out in parallel with the tank activities, and production is therefore expected to recommence during February 2023.”
Elsewhere, at its fully owned Stag oil field, Jadestone said the Stag-50H and 51H wells were brought successfully onstream in late 2022 at an aggregate initial rate of approximately 2,000 barrels of oil per day (bopd), in line with expectations.
“The success of the 50H and 51H wells validates the Stag field development strategy and enhances confidence in several additional infill well locations which are already being developed for possible future drilling,” the company added.
Field production is expected to increase towards about 4,000 bopd once the current planned workover activity has been completed, it said.
The shares were up 7.10p at 78.30p in mid-morning trading.