TIDMJSE
RNS Number : 4352P
Jadestone Energy PLC
20 June 2022
Jadestone Energy
Montara Operations Update
20 June 2022 - Singapore: Jadestone Energy plc ("Jadestone", or
the "Company") an independent oil and gas production company
focused on the Asia-Pacific region, provides the following update
on operations at the Montara field offshore Australia.
On 17 June 2022 during routine production and crude oil cargo
operations, crude oil was being transferred between two crude oil
tanks onboard the Montara Venture FPSO. During the transfer, oil
was observed on the surface of the sea adjacent to the FPSO.
Transfer operations were ceased immediately and production from the
Montara fields was shut in as a precautionary measure.
The release of oil to sea was quickly halted by pumping water
into the tank, indicating a leak somewhere at the tank base. A
subsequent inspection using an ROV confirmed a small 30mm diameter
hole in the bottom of the tank. Having now controlled the release
of oil, the next step will be to apply a temporary repair in order
to remove the remaining oil from the tank. Following this, the tank
will be accessed and cleaned in order to complete an inspection and
permanent repair. This is the same work plan which has already been
applied to all the other main crude oil storage tanks, as part of
the five yearly inspection and repair programme which has been
underway since Jadestone assumed operatorship of the Montara
assets, and which is a normal and accepted process approved by
regulators and Class inspectors globally.
The volume of released oil is estimated at three to five cubic
metres, which was monitored and had fully dispersed by the morning
of 19 June 2022. The National Offshore Petroleum Safety and
Environmental Management Authority ("NOPSEMA") was notified of the
incident immediately and will initiate an onsite inspection of the
Montara facilities on 21 June 2022.
Jadestone's preliminary estimate is that it will take
approximately four weeks to complete the tank inspection and effect
repairs sufficient to re-commence production at Montara, with
appropriate isolation of the crude oil tank. Thereafter, following
consultation with key stakeholders, a full remediation programme
will be conducted, similar to that which has been completed on all
the other main crude oil tanks. At this early stage, Jadestone
estimates the cost of securing the leak site and permanent repair
of the crude oil tank at US$2-3 million. This is consistent with
the overall expenditure to date on the tank inspection and repair
work, which totals US$11 million over the past three years.
On the basis that full production from the Montara fields can be
restarted as estimated, Jadestone expects that full-year 2022
production would be around the lower end of the previously
announced guidance range of 15,500 - 18,500 boe/d.
Paul Blakeley, President and CEO commented:
"Whilst we deeply regret this event, immediate and decisive
action by the Jadestone team limited the quantity of oil released
and made the facility safe, and I commend the work of both the
offshore crew and the onshore operational staff for their quick
response in managing this incident.
The integrity of our facilities is at the heart of our strategy
and this oil tank was due for inspection within the next few weeks
as part of our five-yearly maintenance cycle, which would have been
the final key step in the significant inspection and repair plan
that has been underway on the Montara Venture since we assumed
operatorship in 2019. Over this period, we have worked extensively
and spent significant sums to restore the vessel and associated
infrastructure to the condition required in order to deliver a
long, safe and productive field life.
Safety and sustainability are core values for Jadestone, and we
will now work closely with the Class inspector, NOPSEMA and other
stakeholders to develop and execute a plan to safely and
permanently repair the hole in the crude oil tank. There are many
precedents for this type of activity, both within the Asia-Pacific
region and globally, and we will deploy the necessary expertise to
provide confidence in the solution we implement. It's particularly
frustrating for this event to occur so close to the planned
inspection and repair activity, but our investment in the
facilities to date is bearing fruit, with facility uptime now over
90% and with further improvements in the planning stage. "
-ends-
For further information, please contact:
Jadestone Energy plc
Paul Blakeley, President and CEO +65 6324 0359 (Singapore)
Phil Corbett, Investor Relations Manager +44 7392 940 495 (UK)
ir@jadestone-energy.com
Stifel Nicolaus Europe Limited (Nomad, +44 (0) 20 7710 7600 (UK)
Joint Broker)
Callum Stewart
Jason Grossman
Ashton Clanfield
Jefferies International Limited (Joint +44 (0) 20 7029 8000 (UK)
Broker)
Tony White
Will Soutar
Camarco (Public Relations Advisor) +44 (0) 203 757 4980 (UK)
Billy Clegg jse@camarco.co.uk
Georgia Edmonds
James Crothers
About Jadestone Energy
Jadestone Energy plc is an independent oil and gas company
focused on the Asia-Pacific region. It has a balanced, low risk,
full cycle portfolio of development, production and exploration
assets in Australia, Malaysia, Indonesia and Vietnam.
The Company has a 100% operated working interest in the Stag
oilfield and in the Montara project, both offshore Australia. Both
the Stag and Montara assets include oil producing fields, with
further development and exploration potential. The Company also has
interests in four oil producing licences offshore Peninsular
Malaysia; two operated and two non-operated positions. Further, the
Company has a 100% operated working interest in two gas development
blocks in Southwest Vietnam, and an operated 100% interest
(assuming completion of the Hexindo stake acquisition, as announced
in November 2021) in the Lemang PSC, onshore Sumatra, Indonesia,
which includes the Akatara gas field development.
In addition, the Company has executed a sale and purchase
agreement to acquire a 69% operated working interest in the Maari
Project, shallow water offshore New Zealand, and is working with
the seller to obtain final New Zealand government approvals.
Led by an experienced management team with a track record of
delivery, who were core to the successful growth of Talisman's
business in Asia, the Company is pursuing an acquisition strategy
focused on growth and creating value through identifying,
acquiring, developing and operating assets in the Asia-Pacific
region.
Jadestone Energy plc is listed on the AIM market of the London
Stock Exchange. The Company is headquartered in Singapore. For
further information on the Company please visit
www.jadestone-energy.com .
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 which is part
of UK law by virtue of the European Union (Withdrawal) Act
2018.
Glossary
FPSO floating, production storage and offloading vessel
ROV remote operated vehicle
---------------------------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDEBLBLLQLXBBX
(END) Dow Jones Newswires
June 20, 2022 02:00 ET (06:00 GMT)
Jadestone Energy (LSE:JSE)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Jadestone Energy (LSE:JSE)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
