Skua-11ST Drilling Update
Skua-11ST well reached target depth with over 900m of reservoir; production expected early August but capital cost increased to US$96-100m.
- Reservoir section over 900 meters
- Expected initial production rate exceeding 3,500 bbls/d
- Total capital cost estimate US$96-100 million
- Previous capital cost estimate US$70 million
- Weather and demobilization cost increase US$13-14 million
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14 July 2025 - Singapore: Jadestone Energy plc (AIM:JSE) (the "Company" and together with its subsidiaries, "Jadestone" or the "Group") provides an update on the drilling of the Skua-11ST well at the Montara field offshore Australia.
The Company will issue its trading statement for the first half of 2025 on 24 July 2025.
Skua-11ST Drilling Update
The Skua-11ST well has reached target depth, with analysis confirming the presence of over 900 meters of high-quality reservoir, more than double the reservoir section completed in any of the previous Skua wells. As a result, initial production rates are expected to exceed previously disclosed estimates of 3,500 bbls/d. Well operations are nearing completion, and following demobilisation of the drilling rig, the Skua-11ST well is expected to be brought onstream in early August 2025.
As previously disclosed, the Skua-11ST campaign has taken longer than originally planned. The total capital cost of the Skua-11ST well is now estimated at approximately US$96-100 million, compared to the US$70 million expected cost disclosed in May 2025[1]. Several factors outside Jadestone's control resulted in the well cost increase, including significant weather events and changes to the demobilization plan which have added an estimated US$13-14 million. Additionally, operational factors during drilling required additional rig days and account for the remainder of the incurred incremental cost.
"The Skua-11ST drilling campaign is nearing its conclusion, and I want to recognize the safe and environmentally responsible way the program has been executed to date. 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.
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."
[1] 20 May 2025 Full-Year 2024 results presentation
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.