JADESTONE Energy has posted record cash from operations, as revenue soared four-fold to US$171.7 million (A$254.2 million) in the first six months of the calendar year, compared to just $35 million in the first half of 2018.
Profit after tax for the six-month period to June 30 was $30.9 million, a major achievement considering the company made a loss of $21.5 million in the first half of 2018.
The Singapore-headquartered mid-cap's strong results were driven by its acquisition of the Montara oilfield off Western Australia, which once online more than tripled the company's production over the last six months.
Overall production from Montara and the nearby Stag fields reached 13,315 barrels of oil per day in the second quarter, despite a shutdown due to cyclone Veronica in April.
With increased production, sales also lifted to a total of 2.3 million barrels over the six months, at an average realised price of $71.7/bbl.
"We are building a material business that is strongly cash flow generative, while providing growth through organic investment, both within our existing producing assets in Australia, as well as the new gas developments in Vietnam," CEO Paul Blakeley said.
"Our balance sheet is in excellent shape, with net debt effectively eliminated by mid-year, just nine months since we closed the Montara acquisition with a US$120 million RBL financing arrangement."
Jadestone was formally awarded operatorship for the Montara field in early this month, but had effectively operated the field since acquiring it from PTTEP last year.
It conducted a riserless light well intervention program in June to restore gas lift to the Skua-11 and Swift-2 wells as well as perforated additional sands in the Swallow-1 well.
The work delivered rapid payback and marked the company's first major investment in the field this year.
Jadestone planned to drill an additional infill well, H6, at Montara in the latter half of this calendar year; however, its guidance noted a tightening rig market would likely push the drilling of the well into next year.
Source: Energy News Bulletin
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