Jadestone Energy Share Discussion Threads

[meteors] 14/2/2019 12:54

the portfolio they have looks great with alot of opportunity for growth and increased rate of production :)

[zengas] 14/2/2019 12:23

Latest February presentation



1st Key strategic principle - "Acquire assets with production and/or discovered resources in the Asia Pacific region" - Possible given the ongoing cash build.

[mount teide] 14/2/2019 12:00

A 1.5 cent dividend would be equivalent today to circa 3 weeks of current cash flow.

[mount teide] 13/2/2019 17:38

At current Brent price, JSE's 2019 oil hedge and $2 SE Asian oil price premium is probably helping to generate circa $70/bbl on Montara's entire production of 10,000 bopd.

Average 2018 Montara production was 7,615 bbls/d (excluding downtime for the recent inspection and maintenance work).

On completion of the Montara deal in late September 2018, JSE received $92m of cash and oil - Brent averaged $73 from Jan to Sept.

Considering Montara built that sort of cash level($8-10 million a month) on those barrel numbers and POO; then at 10,000 bopd and an average realised oil price of circa $70, the field should be currently performing significantly ahead of that.

[meteors] 13/2/2019 15:45

@fanshaw apologies, novice here not using right terminology... I kinda was asking when the results get released of the Q4 2018 (or yeah the finals for 2018)

Just excited for when this share price will hopefully rise. There seems to be a lot of promise for the likes of spudding two new wells this year and the production rate increase they mention compared to last year. (I guess have to wait till much later in the year to see this impact the SP)

Hence why im asking what ppl expect share price to be come 6 months down the line ....

cheers!

[mount teide] 13/2/2019 14:49

It is had to take three bites to add another 32k today.

[basem1] 13/2/2019 13:40

Stock seems tight. I have just purchased 20,000 shares.

[fanshaw] 13/2/2019 13:38

Meteors

We haven't had finals yet? or have I missed them.

[meteors] 13/2/2019 13:10

anyone have predictions on share price for the second quarter results? Or will it kick off properly in Q3 ?

[mount teide] 12/2/2019 15:40

Chinese, SE Asian and Pacific Rim markets performed strongly in 2018 according to just released data from the Global Container Port Industry.

Global slowdown in 2018? Someone forgot to tell the World's leading Container ports - 95% of all finished goods at some time see the inside of a freight container.

Globally, the industry reported strong growth last year - 2.6% on a reported basis.

Incredibly, container volumes at the world's top two ports Shanghai and Singapore grew around 2 and 3 times the average global figure respectively.

China's Shanghai International Port retained its top position as the world's busiest container port for the ninth consecutive year. The port recorded 42.01 million TEU throughput in 2018, an increase of 5.0% compared to the previous year, reaching a record high.

The port's improved performance over 2017 was attributed to "the recovery in the global economy(what this means is a recovery in Asian markets since intra Asian traffic flows are now larger than trade flows of finished goods to both the US and European markets), China's increasing import and export business coupled with improving service capability and efficiency" according to port management.

Singapore, the world's second largest container port reported an astonishing 8.7% growth in container volumes to reach 36.6 million TEU last year. Senior Minister of State for Transport, Lam Pin Min, said 2018 had been a "year of uncertainty", but, "Thankfully, Maritime Singapore fared not too badly." (Something of an understatement!).

Singapore also retained it position as the world's largest ship bunkering port in 2018 with fuel sales of 49.8 million tonnes.

7 Chinese Ports made the top ten global container ports by volume throughput - Dubai was the only Port outside China/SE Asia to make the top ten at number 9 and saw volumes fall by 2.1% in 2018.

Container growth through the top Chinese ports in 2018 increased to more than 210m TEU

Container Port Traffic at the top 25 Nations: Ranked regionally:

210 million - China
170 million - SE Asia & Pacific Rim
84 million - Europe
53 million - USA and Canada
52 million - rest of the world

15 of the Worlds top 20 container ports were in China and SE Asia. Both Shanghai and Singapore increased their container volumes in 2018 by close to the total annual throughput of Felixstowe, the UK's largest container port which has a quay some 3.2 miles long. Singapore now handles 10 times more freight containers than Felixstowe - a remarkable feat considering the Country is only 1.5 times the size of the Isle of Wight.

Against this backdrop, it does not take a Phd in Applied Mathematics to work out why the 4.8 billion population of the fast growing Chinese, SE Asian and Pacific rim markets has been responsible for the entire 34 million bopd increase in global oil consumption since 1980 and, where the overwhelming majority of the future growth in energy demand is forecast to come from.

Data Source - Lloyd's List

[thomas11] 11/2/2019 15:39

Just trying to understand the last rns, Have I understood this !

We are targeting 1.2mmbbl reserves with a production rate of 1.2mbbl/d.

This equates to 1,000 days of production which is less than 3 years with an 18 month payback period ?

Is this others understanding ?

[mount teide] 11/2/2019 08:26

Stag Field

Jadestone W.I. - 100%
Operator - Jadestone
2P Reserves - 17.1 mmbbl
Current Production - 3.0 - 3.6 mbbl/d

Overview:
Mid-life asset acquired November 2016 for US$10mm
2P NPV10 - US$84mm
Long life production profile c.2034
Shallow water offshore, Carnarvon Basin

Facilities:
11 producing wells and 3 subsea water injection wells
l Manned platform, connected to a leased storage vessel (FSO)

Future development:
Significant infield running room, several well locations identified

First infill targeted for Q1 2019 - estimated initial production of 1.2 mbbl/d, payback in less than 18 months

Further wells planned mid-year 2019 and mid-year 2020

Two near field exploration prospects identified

Operating Costs:
Impact on unit opex from increasing production - expected to reduce from $33/bbl at 3,000 bopd to $25.2/bbl at 4,000 bopd and $20.1/bbl at 5,000 bopd.

Further logistics savings with 19% reduction in helicopter costs to be implemented in 2019

Latest Stag production premium to Brent: + US$1.45/bbl

[spangle93] 11/2/2019 07:19

Rig contract for Stag infill well announced



Drilling expected in a month's time subject to rig release

[mount teide] 06/2/2019 22:21

Hedge Funds Drop Shorts On Crude Oil - Oilprice.com - yesterday

[zengas] 05/2/2019 12:05

Like Ogan Komering, JSE has a number of projects including production/reserves and 2C not included in the listing doc/CPR until ratified

JSE has circa 20 mmboe 2C gas and oil in SC56 in the Philippines through a 25% working interest though Total decided it wasn't going to drill and JSE are seeking compensation.

Also on SC57 the Chinese National Oil Company CNOOC as operator hold 51% and JSE 21%. This is under force majeure for some time while the Philippines/China are in dispute over the South China Sea area.

SC57 isn't inside the disputed area.

Barely 10 weeks ago, on the 20th November 2018 China and the Philippines signed a MOU on oil/gas development.

"Earlier this year, Malacañang confirmed that two areas are being considered for the possible joint exploration — Service Contract (SC) 57, which covers northwest Palawan, and SC 72 which refers to Reed Bank. SC 57 is located in a non-contested area while Reed Bank is disputed, which requires an agreement from both parties for the deal to push through."

[mount teide] 05/2/2019 11:38

2 x 500,000 and 1 x 100,000 buys at the full 39p ask price is encouraging.

[alamaison5] 05/2/2019 11:19

Huge volume today. Balancing the books for the rise?

[zengas] 04/2/2019 12:58

In reality, you have to consider the entire Montara opportunity. It didn't fit with PTTEPs plans because they have assets of much, much greater magnitude to deal with and it is considered non core. There's much greater potential in the fields over and above current CPR and 28mmbo P2. At the end of the day, this is only one of a multiple set of opportunities and worth bearing in mind what else is yet to come in terms of acquisitions in propelling JSE to significant growth.

[spangle93] 04/2/2019 12:23

Hi MT - good information

Still think that comparing a leased FPSO for a new field on plateau production in the North Sea versus an owned FPSO, incurring opex costs, in a mature field in commonwealth waters in Australia is a stretch, and that easier analogies to demonstrate the value of the deal could be made

[mount teide] 04/2/2019 11:45

Spangle - the Montara FPSO storage capacity versus that of the Catcher FPSO:

BW Catcher has only 10 days production storage capacity so will need an expensive shuttle tanker on permanent year round charter plus guaranteed access to a second(back up) shuttle tanker to ensure production off load operations can smoothly progress from BW Catcher on at least a weekly basis in order to avoid shuttering in field production.

Whereas the Montara FPSO has three months storage capacity for the current production level, so would need to only voyage charter a single tanker just 4-5 times a year to offload all Montara's annual production to market.

Over the last decade Shuttle tankers have routinely commanded US$30,000 plus a day charter rates for a 5-10 year charter period - so Premier's annual shuttle tanker charter cost would be circa $11m a year plus fuel, plus the charter fee for a guaranteed supply of a second tanker, which is likely to be close to another $11m. These shuttle tanker charter costs on Montara's current production level would be equivalent to $7 a barrel of additional operating cost. JSE's $2-3 premium to Brent generates many, many multiples of the current cost to voyage charter a large shuttle tanker 4-5 times a year.

[spangle93] 04/2/2019 11:09

MT - your point about the JSE acquisition being financially attractive is valid, but it's not a particularly strong analogy.

For instance the storage capacity is somewhat moot, since Catcher is 1/4 the distance from a supply base that Montara is, and Montara, which is already in late life, is producing at just 10 kboped. The concern at Montara isn't the oil handling capacity, which is well in excess of whatever the field could now deliver, it's water handling of 60 kbwpd, when water cut is already over 50% in the main field and 80% at Skua (i.e. for each barrel of oil they have to handle 5 of water).And JSE has wellhead decom cost liabilities, which the FPSO at Catcher doesn't, and maintenance and operations cost, which is part of BW's supply contract. Etc.

Conversely for balance in favour of JSE, you could have said that for the net $81MM they also get all the wells, subsea infrastructure, and platform, whereas the FPSO is only the process and export.

edit - Maybe a better picture is that the $81MM net is not much more than the cost of a single MODU-drilled well out in Comonwealth waters

[mount teide] 04/2/2019 10:16

base - if the management continue creating exceptional value, market greed over time will do the rest.

After the $92m cash transfer on completion of the $195m Montara deal in September 2018 and $22m for the subsequent maintenance shutdown - JSE has secured the purchase of the 10,000+ bopd Montara Asset and its FPSO vessel with 45,000 bpd processing and 900,000 barrels of storage capacity, currently generating $8-$10 million a month of cash flow for the almost unbelievable sum of $81m!

To put this in persecutive - Premier oil are paying BW Offshore a charter contract fee(10 year initial fixed duration) for the FPSO BW Catcher of $210m per annum. BW Catcher has a processing capacity of 60,000 bpd and a significantly smaller storage capacity of 650,000 barrels compared to JSE's Montara FPSO.

[fozzie] 04/2/2019 09:49

Thanks for that ;o)