Shares in Jadestone Energy fell 26% on Monday as the company announced that production at its Montara fields offshore Australia has been temporarily shut down. The halt in production comes after a gas alarm was triggered within ballast water tank 4S on Saturday.
At 0716 GMT, shares were down 9.50 pence at 25.50 pence.
Jadestone Energy, an oil-and-gas company focused on the Asia-Pacific region, revealed that the affected tank will be emptied and cleaned over the next week to facilitate an inspection and repair process.
President and Chief Executive Paul Blakeley expressed his disappointment at the situation, stating, "While disappointing and frustrating to have to shut in Montara again, we will find and repair any additional defect while continuing with the overall planned program of inspection of the storage tanks on the floating production storage and offloading vessel."
Following the inspection, Jadestone Energy will provide an update outlining the next steps, potential costs, and any impact on production guidance.
As of June 30, the company had a net cash position of $7.1 million, complemented by an undrawn $35 million working capital facility.