Jadestone Energy Share Discussion Threads

[meteors] 06/3/2019 08:45

that 144p estimation, based on the c$0.71 jump to c$2.60 ?

what is the timeframe on that estimate there seems to be no timeline on that chart... any idea?

[meteors] 06/3/2019 08:27

"Vietnam

At the Nam Du and U Minh fields, offshore Vietnam, FEED, gas sale and purchase agreement negotiations, offshore surveys, and tendering for major contracts are progressing smoothly, and are forecast to be finalised in Q3 2019 along with financing arrangements. The Company anticipates completion of these steps to culminate in field development sanction and a final investment decision later in the year."

This is also huge for Shareholder value IMO - roll on Q3!

[spangle93] 06/3/2019 08:27

The weird thing is that even with all the work in the shutdown, Montara uptime is only anticipated to be 84%. I hope that's conservative

[zengas] 06/3/2019 08:24

144p per share value Page 5. (total tangigble asset value).

Montara light well intervention Q2 after Stag infill well.

Should add 3,200 bopd Jun-Dec this year.

Saves $38m in capital spend.

Montara infill well to add 1.8 mmbls P2 and up to 3,000 bopd entering next year.

Further $15m of cost savings expected in 2019 (new supply boat/helicopter contracts etc).

Committment to look at introduction of dividend at September 2019.

[someuwin] 06/3/2019 08:11

Excellent update. With plenty of upside potential.

"...As we increase our influence and control over the Montara asset, in preparation for taking over operatorship, we are identifying more opportunities to generate value for shareholders, including innovative ways to add reserves and resources, while optimising both production rates and operating costs."


"...The Company continues to evaluate inorganic opportunities to grow its presence in the Asia Pacific region, adhering always to its strict acquisition screening criteria."

[mount teide] 06/3/2019 08:06

Highly impressive update - Montara under Jadestone's ownership is proving to be as transformational as the Board predicted when announcing the acquisition last summer.

[meteors] 06/3/2019 07:50

"Jadestone is a dramatically different company compared to this time last year. Following our acquisition of the Montara asset, offshore Australia, we have tripled production, all of it high quality premium-priced oil from offshore Australia, and are making good progress on a significant development project in Vietnam, which we expect to sanction this year.


Such a promising statement to be made! :D

[someuwin] 06/3/2019 07:24

RNS Number : 9548R

Jadestone Energy Inc.

06 March 2019

Jadestone Energy Inc.

Jadestone Energy 2019 Guidance Outlook

March 6, 2019-Singapore: Jadestone Energy Inc. (AIM:JSE, TSXV:JSE) ("Jadestone" or the "Company"), an independent oil and gas production company
focused on the Asia Pacific region, is pleased to provide guidance for 2019. The Company has posted an updated corporate presentation to its website www.jadestone-energy.com/presentations.
2019 Outlook

-- Average crude oil production expected to be between 13,500-15,500 bbls/d

-- Average production for February 2019 of 15,369 bbls/d following some flush production from Montara restart and continued natural flow from wells Skua-11 and Swift-2

-- Average unit production costs of US$21-24/bbl

-- Capital and other major offshore spending of US$116-131mm

-- Regulatory acceptance of Jadestone's safety case for the Montara asset and change of operatorship expected in Q2 2019

-- Infill wells on both Stag and Montara in Australia, as well as a riserless light well intervention
campaign

at Montara
-- Development sanction for the Nam Du and U Minh fields in Vietnam

-- Over 5,500 bbls/d of 2019 production covered by swaps at an average price of approximately US$72/bbl

Paul Blakeley, President and CEO commented:

"Jadestone is a dramatically different company compared to this time last year. Following our acquisition of the Montara asset, offshore Australia, we have tripled production, all of it high quality premium-priced oil from offshore Australia, and are making good progress on a significant development project in Vietnam, which we expect to sanction this year.

"At the same time, we have changed the character of the Company's finances, such that we are well-positioned to deploy significant cash generated from operations to pursuing attractive reinvestment opportunities, while comfortably servicing our debt obligations and further strengthening our balance sheet.

"As we increase our influence and control over the Montara asset, in preparation for taking over operatorship, we are identifying more opportunities to generate value for shareholders, including innovative ways to add reserves and resources, while optimising both production rates and operating costs.

"Stag continues to improve in operating performance and the infill well we will shortly spud, the first at Stag in six years, will add material production and significantly reduce unit operating costs.

"Meanwhile, we continue to make excellent progress toward development sanction of the Nam Du and U Minh gas fields offshore Vietnam, providing strong growth, further value crystallisation from within the portfolio and a diversification of product mix towards fixed price, long-term gas contracts. We are forecasting completion of FEED, gas sales agreement negotiations, and major contract tendering, leading to formal FID, all within the year.

"Collectively, the catalysts we are forecasting for 2019 put us well on our way toward achieving our longer-term goal of growing to a circa 30,000 boe/d producer by 2023, with our existing asset base."
Australia

All of Jadestone's forecast 2019 production is crude oil from its two producing offshore assets offshore Australia, Montara and Stag, expected to be in the range 13,500-15,500 bbls/d. The Company is implementing measures to streamline operations on both assets, resulting in both lower gross operating costs and higher production rates in 2019. In addition to the impact of adding new production volumes through infill wells and well interventions, the Company anticipates increasing facility uptime towards a target of 84% at Montara this year.

Jadestone intends to start its infill drilling campaign on the Stag field with the Stag 49-H well in March 2019, and with a Montara infill well towards year end. In addition, planning is well under way on an innovative light well intervention programme at Montara focused on three wells, including a high potential operation within the Skua-11 wellbore, which will target bypassed crestal oil pay in the Skua field. This activity, which is planned to commence in Q2 2019, will access substantially the same new resource as a new well, but at a fraction of the capital cost.
Capped swap programme

The Company's existing capped swap programme provides substantial downside oil price protection with over 5,500 bbls/d in 2019 swapped at around US$72/bbl. Additionally, 76% of these 2019 swapped barrels retain full oil price upside above US$80/bbl via purchased calls.
Vietnam

At the Nam Du and U Minh fields, offshore Vietnam, FEED, gas sale and purchase agreement negotiations, offshore surveys, and tendering for major contracts are progressing smoothly, and are forecast to be finalised in Q3 2019 along with financing arrangements. The Company anticipates completion of these steps to culminate in field development sanction and a final investment decision later in the year.

In the meantime, Jadestone has built a highly experienced project management organisation at its Ho Chi Minh City office, in preparation for the detailed engineering, design, and construction phase, leading to forecast first gas production from U Minh and Nam Du in 2021.
Additional assets

Jadestone is maintaining an ongoing dialogue with Pertamina and the Indonesian authorities, with the expectation of confirming its interest in the Ogan Komering asset in Indonesia.

The Company continues to evaluate inorganic opportunities to grow its presence in the Asia Pacific region, adhering always to its strict acquisition screening criteria.

2018 results
Jadestone will release its 2018 operating results and consolidated audited financial statements, as at and for the 12-month period ended December 31, 2018 on April 18, 2019.

[meteors] 05/3/2019 18:24

I reckon its because of the Spud at Stag. odd its dropped if they are Buys. Maybe leaky news? Anyhoo looking forward to it regardless!

[mount teide] 05/3/2019 17:10

2.83 million trade / £1.14m at 40.4p reported after the close.

Considering the volume of buying at 40.6p and above over the last few days (yesterday's 1.43 million trade at 40.6p being the largest example), i suspect today's big single trade may be the clear out of a large sell order, reported to look like a buy at the full offer price.

[someuwin] 05/3/2019 13:18

London South East | Oil & Gas Investor Evening with CEO’s from Jadestone Energy Inc, Tower Resources and InfraStrata, alongside independent oil analyst Richard Slape

Date / Time:
Tuesday 12th March 2019 from 6:15pm

Location:
Brewers Hall, Aldermanbury Square
(Off London Wall), London , EC2V 7HR

...

Paul Blakeley, President and CEO of Jadestone Energy Inc. (AIM and TSXV: JSE)

Jadestone Energy is an upstream oil and gas company in the Asia pacific region, with a focus on production and near-term development assets. The company produces c. 14,000 bbls/d of oil from two projects offshore Australia. In addition, Jadestone is working toward development sanction of two gas fields offshore Vietnam. The Asia Pacific region is familiar territory to the Jadestone team, who have spent much of their careers running Talisman Energy’s highly successful Asia Pacific business, generating outstanding returns. Paul will provide an update on the company, and demonstrate the deep value opportunity within Jadestone, including a clear line of sight to grow production to c. 30,000 bbls/d by 2023.

[meteors] 04/3/2019 16:36

didn't seem to effect SP, was way before market close. Some guys before mentioned this was exchange of funds between hedge funds. Can somebody clarify what is happening here ?

[someuwin] 04/3/2019 15:59

1,430,000 buy.

[mount teide] 03/3/2019 13:36

Looks like oil field drilling and production development costs and are likely to stay low by historic standards for the foreseeable future according to latest research from Wood Mackenzie:


“Oil and gas companies are back in the money,” Wood Mackenzie’s chief analyst Simon Flower said in their latest report.

“Operationally and financially, all lights are green – production is up, costs are down and margins are up.”

The oil majors are making more money now at $60 per barrel than they were five years ago when oil traded above $100 per barrel, Flowers said.

However, oilfield services companies are lagging behind. Since 2014, oil producers have demanded highly material pricing concessions from service companies.

Service companies, desperate for work as drilling and investment dried up, have had little leverage in negotiations. Surplus drilling rig capacity depressed pricing.

WoodMac says that floating production system fabricators still only stand at a 50% utilisation rate.

Meanwhile, even though the oil price and market has rebounded strongly from the 2016 recession lows, producers are largely “sticking to capital discipline” and “shunning growth.”

Global upstream spending is expected to rise from $450 billion in 2016 to $500 billion by 2020, but that would still be sharply below the $750 billion spent at the 2014 peak.


Rystad Energy in a hard hitting report suggests the US shale industry will struggle to cover debt payments AND pay out dividends this year.

Rystad's analysis of the 33 largest shale companies in the US, accounting for 39% of production, finds that while the industry cut debt in the second half of 2018, they will likely struggle this year:

“Shale E&Ps will struggle to please equity investors and reduce leverage ratios simultaneously. Despite a significant deleverage last year, estimated 2019 free cash flow barely covers operator obligations, putting E&Ps on thin ice as future dividend payments remain in question,” said Rystad Energy senior analyst Alisa Lukash.

Rystad's research suggested that the industry may need to trim at least $4 billion from its promised dividend payments over the next seven years due to inadequate cash flow.

The report is likely to prove a sobering read for investors in the sector as it not only suggests its best days are now in the rear view mirror but, that investor sentiment towards the sector could be at or close to an inflection point.

[mount teide] 03/3/2019 12:54

The stock market is not always the perfect arbiter of value.

Howard Stanley Marks, the serial value investor and founder of the multibillion, wealth management firm Oaktree Capital Management, once opined that:

"All intelligent investing is value investing — acquiring an asset for less than its value means seeing what everyone else sees and thinking what no one else thinks."

The previously unloved and poorly managed Stag and Montara Fields are proving to be good examples.

[mount teide] 01/3/2019 11:58

The Stag Field is serviced under long term contract by the FPSO Dampier Spirit operated by Teekay Offshore.

Teekay secured a 10 year contract extension for the vessel in 2014 - as part of the terms of the extension of the charter, Dampiar Spirit entered drydock during H2/2014 for $11m of capital upgrades.

According to data sourced from the FPSO operaters and Lloyd's List the vessel is generating around $25,000/day of revenue under the contract(circa $15k/day of cash flow). The FPSO cost to Jadestone is currently circa $7.35/bbl of production, which could fall to circa $5.50/bbl in the success case for the infill well due to spud this month. The Dampier Spirit has an oil storage capacity of 700,000 bbl - some 205 days of current field production - so requires as few as just two shuttle tanker visits a year to deliver the annual field production to market.

By way of comparison, Premier Oil is currently paying $575,000/day for the charter of the BW's Offshore's FPSO stationed at the Catcher field - circa $8.80/bbl at the current peak production rate - and need to offload the FPSO weekly to avoid production shutdowns due to storage capacity constraints.


Stag Field History - Malaysia's Sona Petroleum Berhad agreed to buy the field for $50 million in 2015 (average oil price circa $55, down from $100 plus in 2014)) - long before the deal was due to complete the oil price commenced a further rapid decline (during which Sona elected to walk away by paying a penalty fee), on its way to circa $28 during H1/2016(the Stag field at that point had operating costs close to $70/bbl).

Paul Blakeley/Mitra Oil(now Jadestone) stepped in at the oil market nadir in H1/2016 with an opportunist $10m offer - which was accepted. The deal completed in November 2016 by which time Brent had recovered to $56, double the H1/2016 market low. After taking over operatorship of the field in Q2/2017, Jadestone has reduced field operating costs to circa $30/bbl(target low 20's post two 2019 infill wells and further operating cost savings).

As with Montara, Blakeley and his team clearly have considerable expertise at spotting lowly valued SE Asian O&G market midlife/mature asset purchase opportunities with material upside potential under their management eg: a poorly managed and oil price low ravaged asset (STAG) and a very poorly managed asset operated by an IOC looking to vacate the region (MONTARA) - long may it continue.

One of the great attractions of investing in a highly experienced second phase operator in an energy hungry, high population region like SE Asia/Pacific Rim is the much reduced market competition for high quality mid/late life assets and, the mostly benign sea and weather conditions compared for example to the gale lashed Northern North Sea and even more challenging conditions found in the North Atlantic west of Shetland, which routinely experience huge depression generated oceanic swells (10 metre plus) and appalling weather conditions from September through to May.

The near year round reality of operating in the Northern Sea Sea and North Atlantic:

[someuwin] 01/3/2019 10:50

We're now into March. So Stag spud can't be far away.

"The Company is planning to spud the Stag-49H well in early March 2019 and drilling operations are expected to take approximately 34 days."

[mount teide] 28/2/2019 16:29

L2: 40.4p v 41.0 - Bidding 40.6p for volume into the close.

[buffythebuffoon] 28/2/2019 14:19

Still not showing on LSE website though.

Buffy

[someuwin] 28/2/2019 13:09

Yes I noticed that. That's why I checked with JSE Investor Relations yesterday. They confirmed that JSE CEO would be presenting there.

[alan00] 28/2/2019 12:56

Thanks. Weirdly doesn't show on the calendar page, if you click on it.