Jadestone unveils output results following acquisition of Ogan Komering PSC

Singapore?s Jadestone Energy Inc announced on Tuesday total liquids production of 322,790 bbls for the quarter ending June 2017 from the Stag Oilfield in Australia and from the Ogan Komering PSC in Indonesia, and natural gas production of 279,514 mmbtu from Ogan Komering, for a total average production of 4,059 boe/d (net working interest) for the quarter.

The company said in a statement revenue of US$18.1 million arising from one crude oil lifting of 227,486 bbls from Stag on May 25, plus ongoing sales from Ogan Komering.

Jadestone acquired Stag Oilfield, offshore Northern Australia in November of last year. The company then completed in March of this year the acquisition of Talisman (Ogan Komering) Ltd, which holds a fifty percent (50%) interest in the Ogan Komering PSC, with the balance currently held by PT Pertamina Hulu Energi Ogan Komering, an affiliate of Indonesia?s state-owned oil and gas firm PT Pertamina.

Elsewhere, Jadestone said net cash flow used in operations of US$8.1 million for the quarter, versus US$3.7 million used in the same quarter a year ago.

?The June quarter was the last full quarter with the Stag Oilfield under the transitional operatorship of the previous operator. During this period, in addition to Quadrant?s time costs and charges while our team waited to take over operatorship, there were two major well workovers undertaken, as well as a third more straightforward well workover, and the completion of a significant amount of work required to obtain the necessary regulatory approvals with the Australian regulator, NOPSEMA, and title office, NOPTA?, said Chairman and CEO Paul Blakeley.

?As a result, we have incurred significant non-recurring and re-structuring costs which have had an impact on financial results during an extended period of production downtime. Nevertheless, with Stag operatorship transferred on July 10, I?m excited by the opportunities for us to accelerate value creation with this asset, while constraining our spending, living within our means, working hard on new efficiencies by further reducing operating costs, and continuing our efforts to address general and administrative expenses".

Jadestone said production at Stag averaged 2,570 barrels a day during the quarter ending June of this year. It has been negatively impacted in the quarter by downtime associated with the three well workover repairs on the 25H, 36H, and 37H wells. Wells 36H and 37H experienced extended shut-ins due to casing integrity issues. Stag has had five well workovers in the first seven-and-a-half months while under transitional operatorship of the previous operator, three in the current quarter.

Since operatorship transfer, from the period July 10 to August 28, production has averaged 3,200 bbls/day, up over 24 percent from the June quarter, delivered as a result of deploying its prior extensive operating experience and by a reinvigorated focus on the day-to-day operations by the offshore teams.

Jadestone said Ogan Komering PSC recently surpassed 2.5 million manhours without a lost time incident. Additional value has been realized from the back-payment arising from the increase in the AAK gas price from US$5.94/mmbtu to US$8.27/mmbtu. ?Ongoing process modification of the Mandala gas development is projected to boost sales gas production by 8 percent, with further potential increases by re-perforating shallow reservoirs in existing wells.

Editing by Reiner Simanjuntak