Jadestone Energy Share Discussion Threads

[11_percent] 11/10/2021 23:25

Portfolio Matters guys presentation - How much spare capacity does OPEC+ have?

[mount teide] 11/10/2021 18:50

A $140bn asset sale: the investors cashing in on Big Oil’s push to net zero - FT

Some snippets from a recent major study by the FT of the O&G Sector

'Energy consultancy Wood Mackenzie says ExxonMobil and Chevron in the US and BP, Royal Dutch Shell, Total and Eni in Europe have sold $28.1bn in assets since 2018 alone. Now they are targeting further disposals of more than $30bn in the coming years.

The total value of oil and gas assets up for sale across the industry stands at more than $140bn, according to the consultancy. The disposals come amid rising speculation about “stranded assets” — huge oil and gas reserves that might never be extracted if the world pursues the Paris climate goals.

“The list of assets is way higher than the number of buyers out there and particularly for some of the bigger deals,” says Greig Aitken, director of mergers and acquisitions research at Wood Mackenzie.

Not only are the selling companies having to be more flexible about which assets they dispose of, they are also having to concede on price given that they are prioritising cash buyers who will help to pay down debt and finance their push into cleaner forms of energy.

“If others come to us and say an asset is attractive, we will look at it,” says one oil executive. “It’s fair to say — there is definitely an increasing focusing of the portfolio, so you’re going to see more assets out there for sale.”

The oil majors are being pushed to turn away from potential cash generators at a time when demand for fossil fuel products is still robust and necessary to meet global energy needs. Even the IEA has conceded the world will need oil and gas for decades to come as renewable producers play catch-up.

“These operational assets will mint money like you have no idea over the next three to five years,” says Laurent Segalen, a clean energy investment banker and managing partner at Megawatt-X, a platform which aims to enable the funding of the energy transition. “Hedge funds, private equity, companies you have never heard of, will pick these assets off.”

Bankers and energy traders are now warning that supply shortages could loom in the shorter term as a result of the aversion to new investment by major oil companies, meaning a potential escalation in oil prices. “You’re not addressing the demand side while you’re cutting supply. Economics 101 states that prices are going to go up,” says one banker.'

[mount teide] 11/10/2021 16:44

Two late reported trades of 100k and 93k at the full 94p offer price.

[thommie] 11/10/2021 16:32

as good as the high oil price is currently feeling for oil companies it will make it much harder to do such good and cheap aquisitions like Jse did, as assets wont be sold at such a bargain anymore. I dont expect anymore of them to happen in the time to come. on the other hand Jse can afford to pay more as they produce lots of extra cash. or they might concentrate on delivering organic growth now. Vietnam FID, lemang FID, development drilling at montara, stag and hopefully maari if the deal succeeds next year? drilling in Malaysia wont hurt as well :)

[tens machine] 11/10/2021 16:00

Solid performer this , buy and hold . Great management with an excellent strategy.Maybe we may get another acquisition before the end of the year

[mount teide] 11/10/2021 14:48

birotop - you're very welcome.

[birotop] 11/10/2021 13:03

MT..please accept that instead of giving a ✅ for every useful share price info accept this ✅ as a thanks for them all…thank you.

[thommie] 11/10/2021 12:58

maybe it will break it when oil prices are rising from todays 85$ brent to 94$? :)

[mount teide] 11/10/2021 12:54

Hit some resistance at the all time high.

L2: 2 v 3 / 92p v 94p (rest 95p to 97p

[mount teide] 11/10/2021 11:28

Moved to 1 v 2 / 93p v 94p (rest between 95p and 99p)

[mount teide] 11/10/2021 11:12

L2 moved to 1 v 5 / 92p v 94p (rest between 95p and 98p)

[arphillips] 11/10/2021 11:09

Getting close to breaking to all time high.

[mount teide] 11/10/2021 11:09

Heavy buying coming in at 94p - a 1p premium to the 93p Offer price .

now 1 v 2 / 92p v 93p

[mount teide] 11/10/2021 11:01

100k put on the bid at 91p during the 11am auction - no interest !

Moved to 3 v 6 / 89p v 93p

and now 1 v 5 / 91p v 93p

[mount teide] 11/10/2021 10:51

Moved to 2 v 2 / 89p v 92p - first buys at the full 92p offer price

[mount teide] 11/10/2021 10:44

L2 opened 1 v 3 / 88p v 91p

then moved to 1 v 3 / 89p v 91p

now 2 v 1 / 89p v 91p (rest between 92p and 94p)

[croasdalelfc] 11/10/2021 08:15

PM assets: At $84 Brent (today) plus $3 Tapis premium operating cash flow is $71 at 7000 boepd or a staggering $181m a year A cash cow for years to come

[croasdalelfc] 11/10/2021 07:54

The PM assets have annual Opex of ~$40m or $18/barrel at 6000 boepd. as stated by PB during acquisition webcast. H1 had production of 7492 boepd or $14.67/ barrel Opex. Current operating cash flow is over $67 a barrel even at 6500 boepd.At 7500 boepd it is $70 a barrel.

[mount teide] 09/10/2021 17:15

B2 - exactly. I see high energy prices as here to stay for many, many years, principally for the reason you mention(economic justification for renewables), together with the fact that the global O&G industry has massively underinvested in replacing and developing it's reserves since 2014, largely as a result of low oil prices and the political success of the environment lobby.

The copper industry is in a similar position ......it invested tens of $billions up to 2017 in an attempt to find new reserves and found very little that was commercial by historic standards - they concluded that with copper at $2.50/lb most of the low hanging fruit(large near surface deposits that were cheap to develop and produce) had been found and further exploration was largely a waste of money. The recent doubling of the copper price appears to be changing that view!

[bamboo2] 09/10/2021 16:32

MT, I see a higher oil price as essential in the economic justification for renewables. This helps us all, as a broader mix of energy supply will help reduce swings in end user pricing, and avoid overreliance on any single source of supply.

[mount teide] 09/10/2021 16:15

Black is the new 'Green' - the same as its been for the last 100 years !

Economic and political reality comes back to bite the West's climate change and green lobby zealot's mad stampede into renewables on the a*se big time!

China orders its Coal Mining Industry to work double shifts to double its 100 million tonnes a year of production to secure energy supply for the winter “at all costs” to prevent power outages that would cripple economic growth and put further strain on global supply chains.

Sadly, with 90% of the World's population living on less than $2 a day, today's global energy crisis has been entirely predictable, and is delivering a once in a lifetime investment opportunity for those that had the foresight to see it coming and invested accordingly.

The reason why the Swedish teen-age snowflake never lectures the emerging Nations on climate change and reducing fossil fuels is because her advisors know exactly the response she would get, which I suspect would be far from complementary!

"So, the children of the Nations of the World that have used fossil fuels for over 50 years at a rate between 25 to 50 times greater consumption per capita than us, in order to develop their economies and living standards to a level that 99% of our population can only dream of, want us to start reducing our fossil fuel usage just as our average consumption per capita finally reaches one tenth of the West?" Hmmmmmm.

[mount teide] 09/10/2021 14:59

The $30+ rise in the price of Brent from the effective date of the Malaysian Petronas PM acquisition, means that the PM assets (circa 6,500 boepd) are today throwing off circa $154 million a year in operating cash-flow before very modest capex and other adjustments.

From the effective acquisition date the net $9 million cheque given to JSE on completion for these assets, must make this one of the deals of the year.


AIMHO/DYOR

[bamboo2] 08/10/2021 18:40

MT, Brilliant. All you need is volume!

My Brent chart pausing this afternoon as it contemplates the recent high at $83.44
The pause will not last long.