Jadestone Energy Share Discussion Threads

[mount teide] 21/9/2024 11:13

KS -'Hope you don't mind?' Not at all.

'I rephrased it slightly saying the cost increase was 'surprising' rather than 'outrageous' '
lol - Very good - much more tactful!

Have become far more direct and less diplomatic over the last few decades - my industry friends likewise, we think it's an age thing!

IR - Phil has always responded promptly and in detail to my previous emails - even when asked some very direct questions.

[king suarez] 21/9/2024 10:50

Hi MT,

Paul did say 'please contact us if you have questions, we are very amenable to it' so I have emailed IR with your question - I rephrased it slightly saying the cost increase was 'surprising' rather than 'outrageous' lol.

I did mention to Paul that this increase in costs for both Montara and Stag had shocked investors and thought it was part of the reason people are reluctant to buy shares at the moment.

Let's see if they provide any answer.

Hope you don't mind?

KS

[mount teide] 21/9/2024 10:34

Ref: Montara Venture

The question I would like answered by Paul Blakeley is how the Montara Field OPEX can go from circa $20/bbl for annual production in 2021 of 7,647 bopd, pre the Montara Venture Class issues, to circa $60/bbl for production of circa 6,000 bopd in 2024?

An OPEX increase of $75m a year, from $56m to $131m is outrageous when considering the following:

Hurricane Energy has the 'Akoa Mizu' FPSO on long term charter at its Lancaster, West of Shetland Field. The FPSO has a cargo capacity around 725,000 bbls, slightly smaller than Montara Venture when all the cargo tanks are available(This has not been the case since Jadestone bought the Montara asset). Hurricane currently pays the FPSO owner Bluewater, $75k/day for the FPSO - $27.9m a year.

AIMHO/DYOR

[king suarez] 20/9/2024 14:28

To be honest I have probably got my wires crossed - it was 3 something :)

[croasdalelfc] 20/9/2024 14:23

According to website the secondary contract at Akatara is for 3BCF (~500kboe) and under negotiation for a small premium to other contract. KS mentioned 3mmscf- I presume that would be the daily amount for ~1000 days?

[pogue] 20/9/2024 14:14

MT
last time I did inspections for BP their specs clearly stated no St St from China or India and all Super Duplex must be NORSOK approved vendor. They had too many failures of those materials in the past from those countries. I myself have seen certificates for the metals that were clearly forged and the results of those metals failing.

[kaos3] 20/9/2024 12:37

inspections .... strange.... producer has its own... several of them, then an outside inspection entity does the job again and signs and is responsible. at the end the buyer sent an old man to check it again without papers as he wished - and that was decisive

speaking of turbines and ship motors in my younger times

abb, andritz, fincantieri etc

there was not a remote chance of something braking. quality assurance systems not allowing it.... too expensive

[kaos3] 20/9/2024 12:33

thank you both from here too.

i assume they have the cultural problem. eg thinking

they are brilliant at squeezing the last drop and that is the essential of their business performance

but when they imply that to the assets/equipment - no good

one has to be able to spend as a king where needed and being cheap warren buffet style at the same time

very difficult to be both in the same entity....

[mount teide] 20/9/2024 11:24

My experience of Chinese built ships is that they're as reliable as market leader Japanese built ships, provided the inspection and maintenance protocols are followed without exception.

After leaving the shipyard, all newbuildings spend 1-2 weeks doing engine/speed/manouevring trials and operational commissioning - this invariably identifies a 'snag' list of issues to resolve prior to handover to the owners and entry into service.

[bukowski750] 20/9/2024 10:17

Did they ever fix that ship m8? I've got some pritt stick and blue tack in the kitchen draw if you want me to post it fella!

[mount teide] 20/9/2024 10:13

Pogue - thanks. Malaysian FPSO - If BP is the next charterer, then that's very encouraging as BP will only charter oil tankers and FPSO's that are maintained and operated to the highest standards.

[mount teide] 20/9/2024 10:01

Heads up - B750 along with his numerous other handles is an obnoxious troll that most have on filter, particularly on the Asia Met Resources thread where he is the resident shill for a management that has presided over the loss of more than 95% of the company's value, since telling the market in 2019 they were now going to use their decades of sector 'experience' to 'monetise' the assets. Valuations of $1 - $2 a share were mentioned. After blowing through circa $80m of shareholders funds since 2015, the shares today sit at $0.006p/$23m market cap.

B750 is a highly narcissistic, Walter Mitty type character with a hugely overinflated opinion of his stock picking ability - laughable, when the researchable reality is that his equity investment track record makes a casino roulette wheel look attractive.

[bukowski750] 20/9/2024 09:51

Oh thanks m8, I only read the top half of MT's posts to be fair, I just saw SFA clusters!

[king suarez] 20/9/2024 09:38

No, it stands for Small Field Asset Production Sharing Contract 'roflmao'.

[pogue] 20/9/2024 09:37

MT
The FPSO has indeed been identified and they had to remove a picture of it from the presentation as the sale and leaseback company did not want people to know what vessel it was and that they had a future interest in it. IIRC it is in for maintenance just now then will be a year in the Middle East with BP (I think that's the client) before JSE get it.

[mount teide] 20/9/2024 09:20

Many thanks KS and Pogue for attending the presentation and providing us with some very useful feedback of your discussions.

With regard to development of the existing assets and future M&A activity, I believe Malaysia now holds the greatest low cost growth potential - so, it was highly encouraging to hear Jadestone has identified an FPSO to facilitate development of what has the potential to become the biggest jewel in Jadestone's asset register - the SFA Cluster.

In this connection, I'm sure most shareholders will be pleased to hear a chastened management has learnt from their and our appalling and hugely expensive experience of owning and operating Montara Venture, ie; that FPSO Class Inspection, Planned Maintenance and Remediation work is best outsourced to shipping companies that specialise in owning and operating these highly sophisticated ships, which carry the additional responsibility of carrying out in-water surveys for up to 25 years IN LIEU of the mandatory two dry dockings every 5 years required for ALL other types of commercial shipping.

SFA Cluster PSC

'In July 2024, through the Malaysia Bid Round Plus, Jadestone was awarded a 100% participating interest in a Small Field Asset Production Sharing Contract (the “SFA Cluster PSC”) offshore Peninsular Malaysia by Petroliam Nasional Berhad (“PETRONASR21;), through Malaysia Petroleum Management.


The SFA Cluster PSC is located in shallow waters offshore Peninsular Malaysia. It is surrounded by the PM428 PSC, in which a 60% operated interest was awarded to Jadestone earlier in 2024 through the MBR 2023.

The SFA Cluster PSC includes the Penara, Puteri, Padang and North Lukut fields, assets in which Jadestone previously held a 50% non-operated interest (through the PM318 PSC and the Abu, Abu Kecil, Bubu, North Lukut and Penara PSC) following the Company’s entry into Malaysia in August 2021. The SFA Cluster PSC fields were producing at a gross rate of 5,000 boe/d in early 2022 prior to production shut-in.

Jadestone currently estimates that the SFA Cluster PSC contains c.15 mmbbls of gross 2C contingent resources. Leveraging the experience gained through the very successful 2023 infill drilling campaign on the PM323 licence, Jadestone believes there is the potential for significant upside from future infill drilling across the existing SFA Cluster fields as well as prospects and leads on the surrounding PM428 PSC. The Company intends to continue its technical assessment of the SFA Cluster prior to submission of a field development and abandonment plan to PETRONAS.

PM428 PSC

As part of the Malaysia Bid Round 2023, Jadestone was awarded the PM428 PSC as operator with a 60% interest, with the joint venture partner being Petronas Carigali.

The PM428 PSC represents potential upside in the event that Jadestone is successful in its application for the Puteri Cluster (see left), since it not only surrounds the Puteri Cluster, but is also in close proximity to the Jadestone operated PM323 and PM329 PSCs.

The PM428 award carries a minimal financial commitment to reprocess some existing seismic. '

[pogue] 20/9/2024 09:19

Its teething issues nothing major it will get fixed soon enough only there is more that you would expect and from things you wouldnt expect that is why delay. Not everything goes right during commissioning.

[pughman] 20/9/2024 08:53

KS and Pogue, thanks for the informative posts. Akatara sounds like it is having more than teething issues.

[yasx] 20/9/2024 08:53

KS/Pogue,


Comments noted and appreciated.

It seems they are not learning any lessons fron the disasters of the past couple of years - this is not the way to run a sustainable operation.

I really think removing PB and replacing him with someone more competent is key to any recovery here. I very much doubt PB can achieve this. Some of the issues raised by Pogue give rise to serious concern.

[dunderheed] 20/9/2024 08:17

Yes thanks pogue, also appreciated!

[king suarez] 20/9/2024 08:00

Very good, thanks pogue!

[pogue] 20/9/2024 07:56

KS well done on the write up covers 99% of what I would say. I will add some more bits to flesh out things as I did a bit more chatting to Phil Corbett from IR who gave some other insights. By the way management are very happy to talk to anyone and Paul and Phil claim they reply to every email. If you want Phil’s email message me he was giving out his card freely last night.

Akatara
As KS says there is another buyer for the gas and that is upto the limit allowed by the government however more gas can be produced by debottlenecking, bypassing choke points in production using other equipment they already have or can buy, they would assess the cost benefit of this later when production has settled down plus they would need government permission to sell more than their current allowance so increased sales is possible in the future not near term I would suggest as the second buyer is not getting his gas till end of next year.
KS said there is a dry run tonight but that is of the Siemens motors other bits don’t work such as the compressor as well so that is not as life changing as it seems.
As KS alluded to design of O&G plants is my speciality, it’s the day job. The screw up at Aaktara is due to doing the job cheaply. The skids were built in China and the whole project was fixed price with local EPC. If you are in the business you will know why there are issues now. If not here is it broken down. The plant was built using skid mounted equipment which is fine if the people that build the skids are competent and honest. A skid is a piece of plant that comes pre built eg a compressor package which has the compressor and all the ancillary equipment it needs to operate so it comes as plug and play effectively. These we built in China which is world famous for shoddy workmanship in O&G and in my experience forging certificates so what you see is not necessarily upto the standard you need or ordered. This was a double problem as the EPC, company doing the overall design and build, were given a fixed price contract, ie they had to bid a price at the beginning they thought they could build the plant for. Most companies nowadays don’t ask for fixed price as it is very difficult to manage the EPC and get an operating plant at the end. If the EPC has made an error in its pricing which considering inflation recently in materials is very likely they also can get the design slightly wrong as all they are doing early on is guesstimating for a bid so the real design usually brings out things that need changed it means the EPC has to recover the costs somehow. 2 ways to do this get the client to pay on a change order or get equipment from the cheapest vendor eg China. So we have lots of Chinese built equipment on site, even the Siemens motors I suggest were Chinese built. How these skids passed a Factory Acceptance Test (FAT) where the equipment is supposed to be tested to the specification is beyond me as they are not working when hookedup on site. Anyway if you want to worry think about what else might go wrong later. They are going to have to manage preventative maintenance very tightly.

Misc
Fireplace asked yesterday about them selling the company. Yes they are for sale at the right price however from the look Paul gave the right price is a long way from where we are so not going to happen soon. They are looking at ways to increase the share price but seem lost for ideas. Phil seemed to think the market will turn soon as 2 of the insitis that hold JSE Shares were indicating to him that they see the drop in US interest rates as stimualtingthe small cap market there and should come across the pond. Only an opinion there but we live in hope. Moving to another index I suggested and KS described the reply very well my impression is there isn’t one that they could go to that is any better than AIM just now and from what I heard from Phill he seems to think that too, even if there was one that would not upset current holders that couldnt handle the move due to restrictions. It would be a dual listing by the way.
FPSO for Malaysia will be sale and leaseback to another company that will keep Mount Teide happy lol. They plan to buy the FPSO and sign the leaseback agreement same day so there is no issues.

[dunderheed] 20/9/2024 07:43

Thanks KS, appreciated.

[puzzler2] 20/9/2024 07:41

Thanks KS - the business appears now to have stabilisd with a concerted effort by management to repair the recent damage over time. My thoughts are that the share price may well now be around the low, so on that basis I have added a few more today.