AUSTRALASIAN oil and gas producer Jadestone Energy has posted a profit, despite the oil price crash and economic woes felt by other regional explorers and producers.

Jadestone, which operates the Montara and Stag oilfields offshore Western Australia, reported a pre-tax profit of US$13.1 million for the first quarter ending March 31. 

This is an increase from $10.67 million in the corresponding period in 2019, or roughly a 20% increase. 

However, profits were down compared to the final quarter of 2019, when the company posted net profits of US$27 million. 

Jadestone told shareholders yesterday afternoon that while net revenue for the first quarter had fallen 20% on the previous quarter, to US$74.2 million, its hedging program had ensured output remained "well above the Brent benchmark".

Of its US$13.1 million in profits, $8.2 million was made from hedged oil. 

Oil prices, both Brent Crude and West Texas Intermediate, were sidelined over the quarter when Russia and Saudi Arabia flooded the market in a dangerous game of chicken when neither country agreed to output cuts to secure the global oil price. 

Production from the Montara project totaled an average of 8799 bopd, lower than the first quarter of 2020 due to cyclonic activity and a maintenance shut down. 

Jadestone reported one single lifting from Montara over the three months to March 31 of 512,575bbls. 

Meanwhile Stag field production was up from 1,941bopd in the March quarter of 2019 to 2866 bbls last quarter. 

Two liftings were reported from the Stag field, totalling 5118,193 bbls, compared to a single lifting of 170,000 in the first quarter of 2019.

Earlier in the year, Jadestone announced it would shelve its Nam Du and U Minh gas project in Vietnam citing a deteriorating international gas market and government approval delays. 

The company also advised it would push back an infill drilling campaign in Australia until 2021.

Jadestone recently completed a seismic survey across its Montara oil field. It then planned to drill several wells across the Montara and nearby Skua oil and gas fields to increase production. 

The first well, H6, was to be drilled in the AC/L7 production permit on the Montara Field and was expected to spud this quarter. 

A second development well, Skua-12, was to be drilled in the adjacent AC/L8 license on the Skua Field.

Jadestone also planned to conduct workovers of the H3 and Skua-10 wells across the two respective Australian permits.

Source: Energy News Bulletin

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