Jadestone Energy Share Discussion Threads

[mount teide] 06/3/2019 20:51

The near term development of Jadestone's Southwest Vietnam gas assets located in the undisputed coastal waters of the Gulf of Thailand could not be better timed(the development plan is targeting first gas in 2021), as Vietnam's 10% annual increase in energy consumption combined with a long standing dispute with China over the South China Sea within Vietnam’s 200-nautical mile exclusive economic zone (EEZ), is exhausting natural resources and impacting the country’s energy security.

It is pushing Vietnam into the rapid development of highly expensive renewable energy in order to continue meeting the demands of it's fast growing economy (7.08% growth in 2018), which has performed second only to China in the region during the last decade.



Vietnam’s Energy Dilemma Is About To Become A Crisis - OilPrice.com today

'Vietnam can’t seem to get a break. The country lies just beneath China, its giant neighbour to the north, and shares many of the same socialist ideals that Beijing promulgates. However, Sino-Vietnamese relations have been a source of tension for years dating back to the colonisation of Vietnam by China centuries ago - a historical fact that the average Vietnamese citizen has never forgotten. Even after the protracted and costly war between North Vietnam and the U.S.-backed South Vietnamese government, that ended more than 40 years ago, China (which had proven a valuable ally for Hanoi during the war) turned on its smaller communist ally and invaded the country in 1979. It was a brief but bloody border war which showed Beijing that Vietnam could still hold its own.

Fast forward several decades and Hanoi is still trying to placate Beijing while at the same time rapidly improving relations with one-time adversary Washington. In fact, U.S.- Vietnamese relations, both trade and bilateral, have improved so much recently that the two sides could now arguably be called allies in the Asia-Pacific region. Of course, much of that alliance, similar in some respects to the decades-old U.S. alliance with Saudi Arabia, is born of necessity. The U.S.-Saudi alliance was berthed in the aftermath of World War 2, held together amid shared concerns during the cold war, and remains amid worries over Iranian hegemony ambitions in the Middle East. The U.S.-Vietnamese alliance is largely held together over the mutual aim of both Washington and Hanoi to keep China's economic and military ambitions in check in the Asia-Pacific region, particularly in the volatile South China Sea, where Beijing claims as much as 90 percent of the troubled body of water.

However, Hanoi’s angst with Beijing isn’t just political, it also related to Vietnam's energy sector. China’s increased muscle-flexing in the region has negatively impacted Vietnam’s ability to develop its own offshore natural gas resources. Last March, according to a BBC report at the time, state-owned Petro Vietnam ordered Spanish energy firm Repsol to suspend an oil and gas project, which was in its final stages, off the country’s southeast coast within Vietnam’s, own 200-nautical mile exclusive economic zone (EEZ). The pull-out cost Repsol some $200mn in lost investment, an amount that the company has to date been unsuccessful at recouping. It was the second time in less than a year that Hanoi had bowed to Chinese pressure in its own waters. In July 2017, Hanoi also ordered Repsol to stop oil drilling operations at an adjacent location, Block 136/3, in response to what media at the time called “threats from China.” The geopolitical squabble in 2017 came just days after Repsol reportedly made a major gas discovery in the area.

Consequently, to offset both its blockage of developing its own gas resources and to help Vietnam meet its growing energy demand amid stellar economic growth, the country needs to turn to renewables. However, it’s still in the early stages of developing renewable energy sources and needs to introduce more incentive policies to attract more investment, media in the country reported last week, citing both domestic and international experts.

Hoang Quoc Vuong, Vietnam’s deputy minister of industry and trade, said that the rapid increase in energy demand and consumption of around 10 percent per year is having negative impacts on the environment, exhausting natural resources and also impacting the country’s energy security. Nonetheless, he reasoned, Vietnam’s clean energy development still has limitations, including unstable supply, difficulty in energy transmission and high costs. He added that the ministry was studying solutions to efficiently develop renewable energy towards a low-carbon economy.

For more than a decade, Vietnam’s economic growth has been second only to China as the country continues to develop and modernize. According to a report by the country’s Central Economic Commission, Vietnam’s economic growth stood at 7.08 percent last year. Vietnam ranks second among Southeast Asian countries with a total power system capacity of nearly 50,000 MW and is ranked 23rd on a global scale.

However, Vuong added that it’s necessary for Vietnam to develop a structure of energy supply sources, including hydroelectric, thermoelectric and renewables. Promoting an energy transition towards a low-carbon economy was critical, he said. By the end of last year, total hydropower capacity in the country of more than 90 million reached 22,000 MW, while solar capacity and wind power capacity is estimated to reach 1,000 MW and 1,500 MW, respectively. Vuong added that the ministry was also receiving a number of proposals to develop wind and solar power projects in the country.

However, hurdles remain to achieve those goals. The International Energy Agency (IEA) recently said that Vietnam is in the early stages of developing renewable energy, thus the government needed to develop appropriate mechanisms to reduce risks for investors in renewable energy development. Pham Huong Giang, deputy head of the Renewable Energy Department under the Ministry of Industry and Trade, said the ministry was studying mechanisms to promote investment in developing renewable energy.'

[homebrewruss] 06/3/2019 16:50

Jadestone are presenting in London on Tuesday:

[fardels bear] 06/3/2019 16:33

41.6p are buys at the end, not sells.

[mount teide] 06/3/2019 16:31

Jadestone Energy predicts significant production uplift in 2019 - Proactive today


'Australia- focused oil group Jadestone Energy PLC (LON:JSE) expects output will double this year as production from its two fields offshore Australia ramps up.

Average production will be between 13,500-15,500 barrels per day, said the AIM and Australia-listed group, compared to an average 7,615 barrels in 2018.

Production was running higher than that forecast in February due to flush production from a restart at Montara in the Timor Sea.

Over the coming year, Jadestone has in-fill wells planned at Montara and Stag, its other producing asset offshore Australia.

This new well at Stag will be the first on the field in six years and will add material production and significantly reduce unit operating costs, said the statement.

Capital and significant offshore spending will be in a range of US$116-131mln.

Jadestone also expects to get the go-ahead for the Nam Du and U Minh gas fields offshore Vietnam.

Paul Blakeley, Jadestone’s chief executive, said "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." '

[fardels bear] 06/3/2019 16:30

OK, I'm in..

[fardels bear] 06/3/2019 15:30

Nothing I've read so far.

[someuwin] 06/3/2019 15:19

"2-3 years and on $500m+ revenue at quoted oil/gas prices could be paying 10p+/share."

That would mean peeps buying now would be getting an annual divi of 25% of their current investment!

PLUS the value of that investment having multiplied in value a few times too.

What's not to like?

[someuwin] 06/3/2019 14:25

Malcy

"Jadestone Energy

Jadestone has given the market some guidance this morning and expect 13,500-15,500 b/d this year with a longer term forecast of 30,000 b/d by 2023. Average unit production costs are $21-24 and the company expects capex this year to be in the range $116-131m. With operatorship of Montara expected in Q2 2019 the company is progressing faster than I had imagined although management is impressive and highly experienced.

They say that they are making ‘good progress’ in Vietnam and expect sanction of the project this year. So much has changed with this company in the last year it is hard to keep up but the acquisition was an absolute peach and already paying out in spades, this company is without doubt going places."

[zengas] 06/3/2019 13:43

$320m+ revenue at assumed oil prices.

Every $6m if used as a dividend = 1p/share.

2-3 years and on $500m+ revenue at quoted oil/gas prices could be paying 10p+/share.

I'm expecting to see at some point a significant sized acquisition increasing revenue.

Certainly possible to see a future $1b of annual revenue.

[mount teide] 06/3/2019 12:00

Some analysis/thoughts of today's update and new presentation:

Feb production 15,369 bopd - Montara Feb production; 13,181 bopd

At $65.5 current Brent price, $2.00 regional premium and, 5,500 bopd of circa $72 hedge, this suggests the Montara field is currently generating US$28.8 million per month of gross revenue and using even the previously advised $22/bbl of operating expenses (at 10,000 bopd of production), an astonishing circa US$19.6 million of monthly cash flow with ongoing asset optimisation expected to deliver further cost reductions.

Ogan Komering - 'Jadestone anticipates re-engagement with Pertamina on negotiations to re-enter the PSC for up to a 40% working interest following the general elections in April.' With an assumed re-entry date of 01 October 2019, suggests a realistic prospect of a deal announcement during Q2/Q3.

'Potential for additional value accretive regional M&A in 2019' - suggests one of the two prospects that were previously advised as having reached the latter stages of evaluation and negotiation has significant potential and a deal could be concluded this year.

Full year operating expenses in the range of $21-$24/bbl is an outstanding achievement as when Jadestone acquired Stag and Montara the average operating expenses were circa $75/bbl and circa $50/bbl respectively.

Montara to add a further 6,200 bopd of production via the Q2 light well intervention(3,200 bopd June-Dec 2019), and 3,000 bopd in 2000 via H6 infill well in Q4/2019(less than 12 month payback time at $65 oil).

Skua 11 Well intervention - opening up the previously shut-in heel of the well delivers accelerated Skua production in 2019 and higher overall field recovery, delaying the need for the Skua-12 infill well, saving $38m of 2019 capex; enabling a revised northeast location for optimal well placement in the future to maximise recovery.

Considering the progress made to date at Montara, management's highly material 2019 programme to deliver further production optimisation and opex reduction, continues to highlight how poorly the previous owners managed the asset.

Stag Infill well to spud next week - with a 34 day drill time - we should have news by mid April. Highly significant upside potential to further lower opex through production development - a 1,500 bopd production increase lowers opex by 50% from $30/bbl to $20/bbl.

Commitment to look at the introduction of a cash dividend by Sep 2019 strongly validates the progress made during the last 12 months.

[mount teide] 06/3/2019 10:07

Spangle - in the November presentation of the Q3/2018 Results, the market was notified of an uptime target for Montara in 2019 of 84%, a 17% increase over the 72% performance previously achieved. The 2020/21 target was advised as 92%.

[mount teide] 06/3/2019 09:12

The target is 30,000 boepd by 2023 through self financed organic growth.

[homebrewruss] 06/3/2019 09:12

Spangle, could that be due to the subsea umbilical replacement happening this year (page 9 of the pdf)?

[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.