Jadestone Energy Share Discussion Threads

[mount teide] 09/1/2019 15:09

Another 3 large transactions totalling 26.6 million again today:

1 x 10.6 million, 2 x 8.0 million

[meteors] 08/1/2019 17:43

Hello - AIM Newbie here :)

Can someone explain the huge sells. Im informed they are institutional broker deals. Im aware they are huge investors deals, however if they are coming across as sells, is this not a bad thing. I just need some clarification on whats this actually means and reasons for it happening. JSE look like a great little company with a solid BOD. Glad to be on board for now

Thanks in advance!!!

[ifthecapfits] 08/1/2019 16:15

Shame they aren't all being bought in the open market ;)

[zengas] 08/1/2019 15:44

26m so far = almost 6% of the company.

[king suarez] 08/1/2019 15:43

Transfer between fund (managers) at an agreed price, do you think?

[mount teide] 08/1/2019 15:40

Eight very large transactions this afternoon totalling 25.495 million all at 35.1p -
(1 x 6million , 4 x 3 million, 3 x 2 million and 1 x 1.495 million).

[mount teide] 05/1/2019 12:04

OPEC To Cut More Than Expected - OilPrice.com

'OPEC’s January production is likely to come in lower than anticipated, a former Saudi Aramco executive said in a statement to CNBC.

The oil cartel agreed last month to shave 800,000 barrels per day off its October production levels, with its non-OPEC allies agreeing to cut 400,000 barrels per day, for a combined 1.2 million barrels per day. But Sadad al Husseini, former executive vice president of Saudi Aramco, told CNBC that OPEC is likely to cut in January about 1 million barrels per day off its October production levels, adding that it is possible that the cartel could cut as much as 1.2 million bpd — that’s in addition to its allies who promised to cut 400,000 bpd.

All signs from OPEC this past week, following a brutal oil price slide, have all indicated that OPEC was aware that the 1.2 million bpd in promised cuts would not quell the market unrest.

The United Arab Emirates Energy Minister said on Tuesday that a market rebalance should take place in the first quarter of 2019; he also added that OPEC would cut deeper if it turned out to be an insufficient volume of oil taken off the market.

Then news came in that Saudi Arabia’s exports had fallen more sharply than expected, and indications are today that fewer OPEC barrels — the fewest in five years, in fact — made their way to the United States in December.

Most analysts agree that oil prices will stay low if OPEC and it's allies fail to make good on its promise.'

[ifthecapfits] 04/1/2019 12:02

Malcy FWIW.

The company announce the completion of works at the Montara field, offshore Australia, following an extensive maintenance and inspection shutdown. With the regulator inspecting now it should only be ‘within days’ when the facility is up and running again. The resultant improvement in reliability and uptime should prove what a high quality bargain this acquisition has been and it should be a matter of time only before JSE take over the operatorship. I recently met with the Jadestone management team who are mighty impressive and I am already expecting big things from them in the future, no pressure there then…

[mount teide] 04/1/2019 10:50

New Year's greeting to you all!

Having put many ships through regulatory and unplanned dry-dockings - rare is the case that the programme of work comes in to the timetable planned or cost allocated for the work - moderate time and cost over-runs are usually a fact of life for major marine/offshore engineering projects - particularly where safety case compliance issues are involved.

It should not be forgotten, in tandem with the planned shutdown to carry out essential work to lift the various improvement notices, prohibition notice and direction letter served on the current operator PTTEP by offshore regulator NOPSEMA, JSE is currently seeking regulatory approval for the early transfer of the operator-ship of the Montara asset - previously expected during H1/2019.

To achieve this transfer, JSE is required to submit a Safety Case and Environment Plan(currently under review by NOPSEMA), to demonstrate they are a fit and competent organisation to manage the assets and safety case.

Considering the previous history of the 'management' of the Montara asset under PTTEP's control; with all the critical leadership positions in the asset management operation now filled with Jadestone secondees - this planned shutdown looks to be providing JSE management with a unique and timely opportunity to demonstrate their competence to NOPSEMA, and to potentially fast-track the date of expected transfer of the Montara field operator-ship from H1/2019 to Q1/2019 - which would bring forward the introduction of the planned measures to reduce operating costs, improve field uptime/productivity and increase production.



Paul Blakeley, President and CEO commented:

"I'm pleased that the shutdown of the Montara assets has been safely concluded, which now completes all overdue inspection and maintenance items which we identified during the initial weeks after closing the transaction with PTTEP. During the shutdown, Montara personnel logged more than 9,000 hours of work, all executed without a single safety incident. This is a testament to the calibre of expertise on the asset and the leadership we have now seconded into the Montara organisation, and a key early step toward embedding the Jadestone operating philosophy and safety culture on the asset.

"In addition to resolving the regulatory non-compliance notices, which in our view now safeguards the integrity and reliability of the Montara assets, we have worked closely with NOPSEMA, the offshore regulator, to satisfy their concerns as laid out in Direction Notice 0732, and are waiting for their final support to a full restart of production."

[spangle93] 04/1/2019 10:38

Pineapple - absolutely, though I wouldn't countenance the film as representative. But you don't have to look beyond Montara itself for evidence of fatal blowouts.

The point is that they set their own deadline - they ARE "the others": JSE people are in all the management positions - and then didn't deliver on it.

[pineapple1] 04/1/2019 09:00

Having seen the movie Deepwater Horizon i'd never be critical of management who put safety first amongst their staff ( i accept its made by Hollywood for an audience). Meeting tough deadlines imposed by others is when corners get cut.
It will be back on line soon enough. I can wait.
imho

[spangle93] 04/1/2019 08:41

Agreed - but they'd have known that in November when they issued a timeline to market.

[zengas] 04/1/2019 08:35

Some of the safety issues under PTTEP (I think 4-5 issued from circa september) were pretty serious ie notice served of potential injury, death from fire/explosion risk and no alternative other than for JSE to comply with and bring these up to standard. Gas venting and temperature control one issue. Glad to see JSE now have all these issues resolved for inspection and restart.

[spangle93] 04/1/2019 08:22

So, Montara still not yet onstream.

on 15-Nov, "A restart of production is expected in early December"
on 11-Dec, "The Company expects production to restart later this month"
now 4-Jan, "That close-out [reintroduce hydrocarbons] is anticipated within days"

Full marks for updating the market when deadlines are missed

Also, few industry turnarounds are delivered on time or budget. The blowouts are on average greater than brownfield or greenfield projects. So they are by no means unique.

Maybe they found a lot more issues but do not wish at this stage to diss PTTEP further

Nonetheless, the company has done a lot of trumpet blowing about how good it is on delivery of plans, and at face value this overrun does not align with such confidence.

[king suarez] 31/12/2018 12:57

Good little interview that, thanks for linking.

[zengas] 30/12/2018 17:32

"One of the things we committed to our investors at the time of the capital raising was to consider and put out a statement around dividends. As a business model, we are generating a lot of cash and that's one of the ways we can give an early reward to our shareholders."

Jadestone CEO interview 11th December 2018

[zengas] 19/12/2018 10:40

Don't disagree with you on the perception thing, but company should be making very good money in that period and also transitioning into gas. Might also make any future oil acquisitions that bit cheaper.

[ifthecapfits] 19/12/2018 10:15

Yes I get that. But weak oil puts a dampener on the whole sector. It's a perception thing.

[zengas] 19/12/2018 10:14

Half hedged at $74.30 for the next year and a quarter, the rest at market (Montara at $2/b premium to Brent).

$74.30 and a $56/b market price means $65/b in line with the CPR pricing.

If oil fell to $45/b we'd still be averaging $60/b.

[ifthecapfits] 19/12/2018 09:38

We need price of oil to start going back in the right direction.

[zengas] 12/12/2018 14:13

Net debt around end of November is put at $52.7m.
I think this reduces to $42.7m if the $10m cash guarantee for the bank were included.

With the exception of December, the company could be theoretically debt free by early Q2 or holding $110m-$120m cash (equalling debt) while generating $8m-$10m/month going forward.

In this latest presentation the Stag infill well is pencilled in for sometime in Q1 at circa $20m from memory. I can't see it until mid Q1 earliest so means the cash level is building.

2 Montara wells are scheduled for Q3 and Q4 next year and a 2nd Stag infill also in Q4 next year.

It will be interesting to see if they now start some workover well work once Montara production restarts. In the Q&A they said they could be ready to go on that once the maintenance programme was complete. I haven't heard any mention of the 3 well interventions since coming to Aim which were to be done in the 2nd half of 2018 so these must be Skua-11, Swift-2 and Swallow-1 wells using a 'light well intervention vessel' for a cost of $9.1m.

The high cash level going forward could lead to another decent acquisition and perhaps put a new financing agreement entered into, to replace the current $120m facility.

[dorset64] 12/12/2018 13:15

Zengas, thanks for posting the December presentation, whats not to like in there, looks great going forward with a hard hand on the CAPEX & OPEX to boot.

[spangle93] 12/12/2018 12:49

Zengas, thanks for getting back, and for the link to the new presentation. The OK farm in could be read in different ways, so it's good that it's sorted.

I read an article last month in Asian Oil & Gas Monitor that was basically saying that things were pretty gloomy in Indonesia, largely due to government inefficiency in awarding new licences, and difference of opinion between the government and regulator.

I can't find how to upload documents to mail here, so I can't send it to you, but the gist is in these sentences

"Bureaucratic delays in decision-making has deterred some [oil company] investors, while state-owned Pertamina’s continued acquisition of expired licences will have made others equally wary. Foreign firms hold contracts for around 12 blocks that are due to run out in 2021-26, and their operators have begun to question the value of investing in new exploration following Per­tamina’;s move to take over 15 licences expiring in 2017-21. An auction of six blocks that started in August has attracted limited interest, suggesting that developers have lost their appetite for Indo­nesia’;s upstream. This is most unfortunate for Indonesia, given that the country’s upstream and downstream are projected to need least US$150 billion worth of investment between now and 2025"

It seems from this that delays are par for the course.

But with my rose-tinteds on, it would appear that if industry interest is waning, and the government is desperate for investment, then any company that can crack the code has a real opportunity to get some choice, and material, farm ins

[zengas] 12/12/2018 10:05

Spangle I stand corrected re the possibility of a 100% farm down by Pertamina of Ogan Komering.

The December 2018 presentation by JSE states farming in for up to 40%.