Jade­stone En­ergy restarts pro­duc­tion at Mon­tara

Stockwatch Daily - - ENERGY - Mr. Paul Blake­ley re­ports

JADE­STONE EN­ERGY Inc. has restarted pro­duc­tion from the Mon­tara oil field, fol­low­ing its main­te­nance and in­spec­tion shut­down. Pro­duc­tion op­er­a­tions restarted at the Mon­tara fa­cil­i­ties on Jan. 11, 2019, and pro­duc­tion vol­umes will be ramped up while fi­nal checks are con­cluded. The en­tire facility will be restarted, in­clud­ing both the oil pro­duc­tion sys­tem and the gas sys­tem, which en­ables gas lift and gas rein­jec­tion so as to op­ti­mize pro­duc­tion op­er­a­tions as rapidly as pos­si­ble. The con­clu­sion of this main­te­nance and in­spec­tion ac­tiv­ity will re­sult in im­proved facility re­li­a­bil­ity and up­time go­ing for­ward, re­sult­ing in no ma­jor planned shut­downs un­til at least the se­cond half of 2020.

PTTEP Aus­trala­sia (Ash­more Cartier) Pty. Ltd., as seller of the Mon­tara as­sets, has agreed to pro­vide $22-mil­lion (U.S.) to Jade­stone in re­la­tion to this re­cent shut­down of the Mon­tara fa­cil­i­ties, in­clud­ing as­so­ci­ated costs, of which ap­prox­i­mately $4-mil­lion (U.S.) was di­rectly at­trib­ut­able to shut­down work scope.

Jade­stone and PTTEP are con­tin­u­ing to man­age the as­set un­der the terms of the op­er­a­tor and tran­si­tional ser­vices agree­ment whereby PTTEP, as the duty holder un­der the cur­rently in-force safety case, con­tin­ues to op­er­ate the Mon­tara as­sets, with all crit­i­cal op­er­a­tions lead­er­ship po­si­tions now filled with Jade­stone per­son­nel who have been for­mally sec­onded into the PTTEP or­ga­ni­za­tion. In the mean­time, the reg­u­la­tor is re­view­ing Jade­stone’s re­cently sub­mit­ted Mon­tara safety case and en­vi­ron­ment plan. Upon ap­proval, the reg­u­la­tor will per­mit the trans­fer of op­er­a­tor­ship to Jade­stone.

Paul Blake­ley, pres­i­dent and chief ex­ec­u­tive of­fi­cer, com­mented: “I’m de­lighted to see pro­duc­tion op­er­a­tions safely re­sume at the Mon­tara as­set and pleased that the work we have com­pleted al­le­vi­ates the need for any fur­ther ma­jor planned outages un­til at least late 2020.

“Catch­ing up on Mon­tara’s over­due in­spec­tion and main­te­nance tasks and re­solv­ing the reg­u­la­tory non-com­pli­ance no­tices was a pru­dent step early in Jade­stone’s ex­pe­ri­ence with Mon­tara, and serves to en­hance the as­set’s value.” About Jade­stone En­ergy Inc. Jade­stone En­ergy 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, Viet­nam and the Philip­pines.

We seek Safe Har­bor.

Alexan­der Paul Blake­ley, Cedric Fon­tenit, Robert Alexan­der Lam­bert, Iain McLaren, Den­nis McShane, David Neuhauser, Eric Lin­coln Sch­witzer

(JSE) Shares: 461,009,478

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