VAL's Jack-Up Rig to Commence New Drilling Program Offshore Australia

Core Viewpoint - Valaris Limited and Jadestone Energy are advancing the Montara field offshore Australia, with the Valaris 247 jack-up rig set to commence drilling operations, which are crucial for Jadestone's capital program for 2025 [1][2]. Drilling Operation Details - The drilling operation will involve a side-track well at the Skua-11 formation, including the decommissioning of the existing SK-11 well, which will be plugged and abandoned [2]. - The side-track well will be drilled at a higher level to enhance the recovery of hydrocarbon reserves [2]. Expected Production - The Skua-11ST drilling program is projected to last 60 days, with an expected initial production rate of 3,500 barrels of oil per day [3]. - This operation is anticipated to extend the economic lifespan of the Montara field by one year [3]. Financial Impact - The drilling costs are estimated at approximately $62 million, with a payback period of 16 months, indicating a strong return on investment [4]. - The internal rate of return for this project is projected at 65%, reflecting robust financial returns [4]. Production Levels - Jadestone Energy expects that bringing the Skua-11 well back into production will increase its overall production levels to about 21,000 barrels of oil equivalent per day year-to-date, slightly exceeding expectations despite earlier downtime due to cyclones [5].