Jadestone Energy Share Discussion Threads

[mount teide] 24/11/2021 09:04

Another great deal - JSE has picked up the remaining 10% of the Lemang PSC asset at a pro rata 62% discount to the price it paid the highly distressed seller for the 90% it already owns.

Previous post made at the time of completion of the deal:

Lemang PSC

For Jadestone to pick up a 90% operating interest in the high quality fully appraised Lemang PSC for $12m after the previous operators hawked it around the market with a price tag of $50m after doing little with it for five years, largely because of low oil prices and being highly cash constrained suggests this is likely to prove another outstanding deal for Jadestone.


Singapore listed Ramba Energy, which is engaged in Indonesian oil prospecting, has announced that a firm backed by private equity major KKr is investing up to $179.6m for a 35% stake in an operating subsidiary - Lemang PSC Singapore. - Deal Street Asia / Oct 2015

'Singapore-based Mandala Energy, backed by KKR and formed in March 2015, will be taking a 35 per cent interest in the Lemang Production Sharing Contract (Lemang).

Prior to this deal, Ramba, via its subsidiary PT Hexindo Gemilang Jaya (Hexindo) held a 51 per cent interest, with 49 per cent held by Eastwin Global Investments Limited.

Lemang is Ramba’s largest field by acreage and resource potential. A 2011 estimate by petrochemical consultancy DeGolyer & MacNaughton suggests the Lemang block may have reserves of up to 511 million barrels of oil and 468 billion cubic feet of gas.

Subject to Indonesian government approval, the deal involves a US$26.25-million upfront cash payment from Mandala.

Subsequent payments are to be milestone-based, involving sliding-scale future contingent payments based on certification of oil and gas reserves, partial carry for Ramba’s share of 3 exploration wells and a cash payment upon declaration of the first new exploration discovery.

Under a concurrent agreement, Hexindo will be buying 15 per cent of the Lemang field from Eastwin. Upon completion, the net effect, will see Mandala (35%), Hexindo (31%) and Eastwin Holding (34%) as the shareholders in the field.

Back in August, Ramba announced that it has received approval to start producing at the Akatara Field which is sited within Lemang. The company is gearing up to prospect at another location within Lemang, called Wajik.

According to an official release, the transaction enables Ramba Energy to realise value from its Lemang investment, and the partnership combines its local operating strengths with the technical and financial capabilities of Mandala Energy.

With an approved Plan of Development for the Akatara Field in place, Ramba and Mandala look forward to working together to bring first production online in the near term, appraising the significant upside in the field itself, and pursuing the material exploration potential of the Lemang block.

This project also aligns with Indonesia’s goal of increased national petrochemical production. David Soeryadjaya, CEO of Ramba Energy, noted that Mandala’s decision to select Indonesia as the location of its first transaction underscores Indonesia as a desirable investment destination and represent a partnership with complementary skill sets both can leverage. “Despite the current low-oil-price environment, this partnership validates Ramba’s overall strategy and the positive economic returns we expect from the Lemang block.

We look forward to a long-term partnership which goes beyond just Lemang,” says Soeryadjaya. Barry O’Donnell, CEO of Mandala, notes the deal is part of expanding Mandala’s regional business interest. O’Donnell said, “Combining Ramba’s local relationships and knowledge with Mandala’s technical and operational strengths will provide an ideal platform for securing early production whilst pursuing significant upside potential in the Lemang project.” '

[croasdalelfc] 24/11/2021 08:53

Tapis close to $88 given it's current premium to Brent https://www.aip.com.au/pricing/international-prices/international-market-watch

[croasdalelfc] 24/11/2021 07:55

Part of the $500k was transferr

[zeusfurla] 24/11/2021 07:43

Cheaper than the 90% deal which was already an incredible bargain. Not complaining about this and it will save management time and hassle to focus on better things.

[thommie] 24/11/2021 07:43

peanuts in the end. the important thing is the brakes are off now and they can progress with development and FID as there wont be any further needed discussions with a partner that doesnt want to invest money into the asset.

[croasdalelfc] 24/11/2021 07:23

As predicted - I hoped it would be free but $500k ain't too bad

[soggy] 24/11/2021 07:12

RNS out. Looks like a good deal to me...

[fardels bear] 23/11/2021 16:46

Hear hear. I'm bloody 66 in February and I wanna do a Viv Nicholson.

[thedudie] 23/11/2021 15:54

I (think I) am a Long Term Investor but 20 years and I am likely to be brown bread.
Can they move it along a bit please - I want JSE to be funding my life not my next of kin!

JSE need to be demonstrating what a uniquely cash generative oil/gas business they are.


Looks to my squinty eye that we are due a bounce to keep on trend.

[fardels bear] 23/11/2021 15:35

I know, you keep saying. But it just doesn't FEEL like that from where I sit.

[mount teide] 23/11/2021 15:02

FB - lol - Last time I looked JSE is averaging a 38% CAGR since its 2018 London listing.

Average that for 20 years and its turns an initial £50k investment into £22.3m plus dividends!

[croasdalelfc] 23/11/2021 14:45

A pinned tweet as well

[croasdalelfc] 23/11/2021 14:31

Tweet about Maari quoting OMV chair https://twitter.com/jadestoneenergy/status/1463151586188963847?s=21

[fardels bear] 23/11/2021 13:11

I think the twentieth coat is about dry now.

[officerdigby] 22/11/2021 11:37

thanks Teide.
Obviously, I know little about this one.

[mount teide] 22/11/2021 11:34

OD - A side track on the Montara H6 well, together with a potentially less than straightforward well work-over programme at Skua has been responsible for pushing the release of Valaris 107 into the second half of November.

[mount teide] 22/11/2021 11:26

'Worried about a SPR release??? China has already been doing it for months to no effect, India only has 1 week of SPR reserves, and a US release of 30-40MM Bbls = a whopping 10 hours of global consumption. Block out the noise and focus on what actually matters.' - Eric Nuttall / Energy Investor and Market Commentator

[officerdigby] 22/11/2021 11:26

I know people cross referencing ADV here with little complaining. Did you note that in the recent ADV YT link. The Chap says they are getting the rig after JSE and it is delayed through whatever issue JSE are having?..

Thought it was interesting at least.

Originally scheduled to get rig in late October, planned mid November. Now no idea.

His words: they obviously had problems we don't know what their problems are.

[croasdalelfc] 22/11/2021 08:33

Tapis premium to Brent increasing back to its traditional $4/5 a barrel. Montara and PM asset oil ( and Maari) all sold to Tapis benchmark . hTTps://www.aip.com.au/pricing/international-prices/international-market-watch

[mount teide] 21/11/2021 21:49

IMO 2020 Premiums to dated Brent for Australian heavy sweet(low sulphur) crude maintained at previous month's level.

S&P Global Platts - 17th Nov - 'Australia's heavy sweet Van Gogh crude for loading in Dec. 8-12 was recently sold at a premium of more than $7/b to Dated Brent'

[fardels bear] 21/11/2021 20:50

And yet, and yet.....

[11_percent] 19/11/2021 14:29

3rd Reading scheduled for Tuesday 23rd . 4th on list but 2 hours of debate are scheduled so might not complete until 24th. Royal assent is usually within 5 days .


For those that like to see the picture.

[mount teide] 19/11/2021 09:12

O/T

LG - apologies it was a typo.

Recently started a new ADV thread with charts: