SINGAPORE – Jadestone Energy will defer a planned infill drilling campaign on its Stag and Montara oil fields offshore northwest Australia until 2021.
The company said this would help align its capital spending with a strengthening oil price environment, maximizing potential future returns, while preserving its current balance sheet and net cash position.
Jadestone now anticipates total capex of $30-$35 million in 2020, of which it has already spent around $15.5 million during 1Q, including completion of the Montara seismic campaign.
Production this year should now average around 12,000-14,000 b/d, rising 25% in 2021 as a result of Jadestone’s farm-in to the Maari project offshore New Zealand.
President and CEO Paul Blakeley said: "Deferring the two infill wells not only sets us up to remain more resilient during this uncertain time, but also allows us to potentially lock-in lower service costs next year, ahead of what we anticipate will be a recovering oil price environment…”