Asia Pacific focused independent oil and gas company Jadestone Energy announced on Thursday that the Stag 49H infill well offshore Australia has started producing at a rate of 1,400 bopd.
After concluding drilling operations on May 6, 2019, the well was given approximately two weeks for swell packers to expand and set while the company completed hook-up operations prior to first production, Jadestone said.
First oil was achieved on May 21, 2019 and, following a brief clean-up period, the well is now producing at a rate of 1,400 bopd, confirming the company’s confidence in delivering 1.2 mmbbls of incremental 2P oil reserves, it added.
Paul Blakeley, Jadestone President and CEO, said, “I’m delighted to have safely and successfully completed our first infill well at Stag. This is another important milestone for Jadestone.”
Singapore-based Jadestone, which acquired Stag from Quadrant Energy and Santos in 2016, is operator and 100% owner of the developed oil producing field.
The oilfield is located within the boundaries of the WA-15-L Production Licence in the Carnarvon basin, 60 kilometers offshore Western Australia, in a water depth of approximately 47 meters.
The field was developed using a fixed leg, 12 slot manned central processing facility platform with a liquids production capacity of 50,000 bbl/d, of which 30,000 bbl/d is for oil. This is connected, by an eight inch underwater export pipeline, to a pipeline end manifold and floating storage and offloading vessel (FSO), via a catenary anchor leg mooring buoy. Shuttle tankers transfer the oil from the FSO to shore.
“When we acquired the field in July 2016, we recognized several opportunities to add value, including streamlining logistics and operations, improving uptime and, most importantly, adding additional barrels through infill drilling,” Blakeley said.
Jadestone's $112 million infill drilling campaign includes one new well in 2018, two in 2019 and two in 2020.
“The 49H infill well further validates our re-investment thesis and serves to enhance near-term cash flow, reduce unit opex and extend the productive life of the field,” Blakeley said.
“Moreover, we have enhanced our understanding of the reservoir, which plays into further drilling opportunities, and we continue to seek new opportunities to add value to the asset, particularly as we begin to realize economies of scale with our other Australia operations.”