Jadestone Energy has completed its East Belumut drilling campaign and production is more than double what it had initially projected.
Infill drilling work at the East Belumut field covers four wells. The final well is being tested after reaching 4,600 metres – around 730 metres deeper than planned. The company explained it had deepened the well after finding a better than expected oil column and is the longest reach horizontal drilled on the field.
Jadestone expects initial production from the fourth well to be more than 3,500 barrels per day of oil. The other three wells in the drilling programme are producing 7,000 bpd.
The company said it had expected initial production from the four wells to be 3,500 bpd.
As a result of the strong productivity, Jadestone projects it will cover its drilling expenditure and reach pay back by the second quarter of 2024.
Furthermore, the results will likely increase its reserves and provide future drilling targets. Jadestone has a 60% stake in East Belumut.
“The East Belumut drilling programme has proved to be very successful”, said Jadestone president and CEO Paul Blakeley.
“This is our core strategy at work, having acquired the interests in 2021 and now starting to add value through our differentiated view of the subsurface potential. These results will significantly expand the scope for further infill drilling on East Belumut and I expect will generate a number of well campaigns for the future.”
Jadestone’s production is averaging 20,000 barrels of oil equivalent per day. In addition to East Belumut, the company is producing around 7,500 bpd from Montara. However, Montara will shut down for a week in early December for compressor maintenance.
The company continues to look forward to the start of production at Akatara, which is due before mid-2024. The gas project is 87% complete and pre-commissioning has begun.
The Elang-1 rig will move to Akatara in the third week of December, slightly delayed from November. The rig will workover five wells, which will provide gas to the Akatara processing facility. Despite the delay, Jadestone has not changed its timetable for the project.
“At Akatara, the project continues to make good progress and remains on schedule, still comfortably targeting first gas in the first half of next year,” said Blakeley.
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