Jadestone Energy Share Discussion Threads

[mount teide] 01/10/2018 22:18

Wanobi - the Oil and Gas Conference Presentation and Investor Presentation links in the header should provide a useful starting point together with the content of the header.

[wanobi] 01/10/2018 20:48

Hi MT,

Also,

Please can you tell me in a nutshell why JSE is a buy right now??
Most appreciated, thanks, cheers Wan

Apologies for the laziness and my direct question, it just seems that you are the most knowledgeable here and I've always tended to rely on local knowledge!!

I fully understand if you tell me to bog off and do some research; thing is, I don't have a lot of time to do that with so many seemingly great investment opportunities on offer...

Another intriguing one!

Thanx
Cheers
Wan

[mount teide] 01/10/2018 20:41

Brent flying up 3% to $85.28

Jadestone will be getting close to $88 with the regional premium.

Montara purchase timing is looking prescient - JSE will almost certainly have initiated discussions to discuss terms on/before the effective start date when Brent was $55-$60 - which is likely to have heavily influenced the purchase price.

[highly geared] 01/10/2018 19:28

With Montara acquired, profit seriously leveraged if Brent continues up toward $100. Asset purchase impeccably timed!

[mount teide] 01/10/2018 17:31

Brent surges to $84.50

[highly geared] 01/10/2018 13:46

Still trading at less than 1/3 net present value. With Montara at 100% ownership, the gap should start to close.

[puzzler2] 01/10/2018 13:40

Duplicate post

[puzzler2] 01/10/2018 13:39

Added earlier today

[walter walcarpets] 01/10/2018 13:08

Also picked up a few this morning. Thanks MT for thread and info.

[mount teide] 01/10/2018 12:58

Welcome aboard Mr T.

L2 continuing to strengthen: 1 v 2 / 42.0p v 43.0p

[highly geared] 01/10/2018 12:57

Very much under the radar but the smart money will be buying...
Cash generation at 15,000bopd with Brent above $80…

[mr. t] 01/10/2018 12:47

I've bought some JSE the last few days. Thanks all for the thread and useful info.

[zengas] 01/10/2018 09:35

Thanks for the new thread MT with the charts that some requested. Only just found this one after being in here from UK listing and time spent over on the other very quiet thread. Didn't think too many had noticed Jadestone.

[highly geared] 01/10/2018 08:43

Got these at 37p and see 3x upside in 12 months if all goes well. POO means good producers are in a real sweet spot for cash generation.

[fozzie] 01/10/2018 08:25

Yes a thank you from me too MT. Great posts across the oil sector from you always. My portfolio is 75% oil stocks now so i am hoping that we are in a very sweet spot. Got into AAZ sub 40p, no debt and now a divi, that too is a good one to hold.

[mount teide] 30/9/2018 22:54

Mr R - thanks for the heads up.

[mr roper] 30/9/2018 18:28

Have this one on my watchlist, mt. Thanks for bringing it to my attention. You might want to have a look at Aaz, still seriously undervalued and a very good board.

[mount teide] 30/9/2018 17:48

This thread is a little similar to the TXP thread following its AIM listing last June - there were 3 posts in 2 months over the summer and TWO of them were mine!

TXP is up over 100% (been as high as 153% up) and is benefitting from having a top class management, falling operating costs, strongly rising production and strong oil price environment.

If the management successfully execute the 2019 operational programme and oil continues to average in the $75-$85 range, JSE has the assets, management and potential to deliver a similar level of s/p% upside to TXP in its first year on AIM.

AIMHO/DYOR

[mount teide] 29/9/2018 09:04

Brent closed at $82.88 - this will see JSE getting North of $85 with the $2.50 regional light oil premium.

[mount teide] 28/9/2018 16:09

L2 continuing to strengthen: 3(45,000) v 2(17,500) / 40.0p v 41.4p

[mount teide] 28/9/2018 14:55

Next move up looks to be getting underway.

[mount teide] 28/9/2018 10:32

The $92 million cash and inventory transfer on completion gives a very strong indication as to the highly accretive nature of the acquisition and its commercial potential, particularly in a $80+ Brent oil price environment(JSE get a $2.5 premium to Brent) - since this sum was generated with:

* An average Brent price of circa $73 Jan-Sept 2018)
* Field uptime of 72%,
which JSE in 2019 is targeting an increase to 84% while:
* Increasing annual production by circa 1.7 mbbl/d and
* Reducing operating costs by circa 20% and corporate charges and overheads by >50%.


'Upon completion, Jadestone paid to PTTEP the purchase price of US$195 million and certain customary closing adjustments.

Upon completion, cash and inventory totalling US$92 million was transferred to Jadestone as a result of the accumulated economic benefits of the Montara assets for the period from the effective date of January 1, 2018 to completion.'

"I'm delighted to have completed the Montara acquisition in just two-and-a-half months after announcing the deal. This reflects our deep in-region commercial expertise, nimble approach to decision-making and close working relationship with PTTEP. Today's news is an excellent example of how we can deploy our unique skill-set to deliver material value for our shareholders through growth in the opportunity-rich Asia Pacific region.

"I'm also pleased with the purchase price we have paid for Montara, which allows us the opportunity to add significant value by reducing costs and adding reserves through further activity. The acquisition is highly accretive from day one, with metrics further enhanced by the cash coming with the asset as a result of the effective date of the transaction being January 1, 2018." '


'Additionally, Jadestone has initiated a capped swap oil hedging programme designed to mitigate the potential impact of lower oil prices on its ability to service debt and ensure liquidity. The Company retains the ability to fully participate in price upside beyond US$80/bbl for the great majority of its hedged barrels.'

Smart move - locks in current pricing while benefitting fully from pricing upside

[king suarez] 28/9/2018 10:29

Yes, I realise they have the Stag field as well :) Looking highly cash generative atm.

Montara is a great aquisition for the price. Amazing that the company can pick up an asset like this, which will have paid the cost by end 2019. Seems awfully cheap to me, even with anticipated declines and potential extra costs based on oil price, production etc. Hopefully scope to increase production and/or slow declines too so this will be a very highly cash generative aquisition for years to come.

Is it expected that the Ogan Komering PSC will continue as a 50-50 split between Jadestone and Pertamina? If so, that adds another c1,500 BOEPD 66:33 oil/gas?

[zengas] 28/9/2018 09:45

That's just Montara.

Stag has about 30% production relative to Montara.

Ogan Komering May 2018 producing PSC expected to be through this coming quarter.