Jadestone Energy Opens Higher as Skua-11ST Well Exceeds Production Expectations

Jadestone Energy plc (LON:JSE) announced better-than-expected initial oil production rates from its Skua-11ST development well at the Montara field offshore Australia, sending positive signals to the market.

Jadestone shares opened Wednesday's session higher at 21.2p, initially rising as high as 22p per share. However, it has since retreated and is now up around 0.6% at 19.85p.

Initial oil production from the Skua-11ST well surpassed 6,000 barrels per day (bbls/d), markedly exceeding the previously guided rate of 3,500 bbls/d.

Following the initial surge, production stabilized at approximately 4,400 bbls/d operating on a 40% open choke before the remaining subsea wells in the Montara field are brought back online.

The Skua-11ST well was strategically completed with downhole inflow control devices. These devices are engineered to optimize reservoir sweep and enhance overall oil recovery from the well.

Jadestone intends to manage Skua-11ST, along with the other Montara wells, to maximize the long-term yield from the Montara field.

T. Mitch Little, Chief Executive Officer of Jadestone, stated, “We are pleased to report the strong initial flows from the Skua-11ST well, which will meaningfully contribute to higher production from Montara, underpinning our revised 2025 production guidance which was upgraded in July. The increase in production will also reduce Montara unit operating costs and extend field life by approximately one year.”

Little's statement underscores the strategic importance of the Skua-11ST well in Jadestone's broader operational framework.

The successful flow testing of the Skua-11ST well represents an operational milestone for Jadestone Energy. The company's strategic investments in optimizing production and reducing costs are yielding tangible results.