Jadestone Energy has provided an update on the Akatara gas development project onshore Indonesia.
Since 22 June 2024, when the Company announced mechanical completion of the Akatara Gas Processing Facility and the introduction of reservoir gas into the Facility, raw gas production has ranged between 3-8 mmscfd, allowing for commissioning of the Facility’s systems and the start of condensate production, which has totalled c.4,700 bbls to date.
On 31 July 2024, following successful packing of the 17km export pipeline from the Akatara field, commercial gas sales into the regional trunkline in Sumatra commenced at a rate of c.4 mmscfd, or approximately 20% of the daily contracted quantity (“DCQ”) under the Akatara gas sales agreement. LPG production is expected to start imminently.
Jadestone will issue a further announcement once full DCQ (c.20 mmscfd) sales gas production is achieved, which is expected within the next two weeks.
Paul Blakeley, President and CEO commented:
'The Akatara project has now met the key major milestone of first contractual gas sales, just over two years since the original investment decision was made and just five weeks after introducing reservoir gas into the processing facility. Successfully commissioning a major new processing plant, producing gas, condensate and LPGs in a relatively remote location in Indonesia, is no small task and represents a significant achievement for Jadestone. Over 7.5 million manhours without an LTI and over 40% of that delivered through local contractors only magnifies what we have accomplished.
On behalf of our shareholders, I want to thank all of the Jadestone employees and our contractors who have worked around the clock over the past months to address the challenges and issues that are entirely normal when commissioning a facility of this nature. The work doesn’t stop there, as we will be laser focused on refining the processes and procedures at the Akatara processing plant to deliver the highest levels of uptime.
This is a major milestone for our company, a new low-cost production base in Indonesia which will provide significant cash flow to the company, and benefit local economies with cleaner, lower carbon energy, jobs and potential for further investment and growth to come. We look forward to ramping up in short order to full DCQ production within the next couple of weeks.'
Source: Jadestone Energy
