Jadestone Energy Share Discussion Threads

[winnet] 03/10/2024 17:51

it does, its a terrible system, isn't it? No one ever wants to be a bottom-quartile payer!

[wooster4] 03/10/2024 17:50

Winnet, all companies benchmark against peers to ensure they are paying the market rate - however, many companies select inappropriate peers to give the appearance of being underpaid - explains the ratchet of executive pay over the past 20 years.

[mount teide] 03/10/2024 15:56

PB was based in the Far East for the last circa 10 years of his employment with Talisman Energy, following which he was headhunted by Mitra Energy/Jadestone Energy.

However, his LinkedIn account has Hunters Hill, Sydney NSW as his contact base at that time.

Sounds like, while based in SE Asia with Talisman, he either already owned or bought a property in Sydney after leaving Talisman. Enabling him to use this as his actual home base when negotiating with the activist hedge funds then running Mitra, to qualify for an 'overseas allowance' with Jadestone.

AIMHO/DYOR

[croasdalelfc] 03/10/2024 15:29

I once asked if he was glad to be home (UK) to see family (just post pandemic) - he replied he had no family in UK - I wonder what overseas means?

[wooster4] 03/10/2024 13:02

winnet - it you're referring to performance targets governing vesting, then all companies either disclose them on a forward-looking (most) and failing that, a retrospective basis. I think MT is referring to annual bonuses which are often rather more opaque and subjective.

[jeff114] 03/10/2024 08:14

Well MT as I remember the biggest evalution criteriul was reserve growth... one of the reasons why I sold, because it's not in the benefit of shareholders and company to grow at whatever cost.... And to base bonuses on that

[paduardo] 03/10/2024 08:09

Isn't there a slightly negative flip side to this - it means there isn't material undisclosed information e.g. they are not just about to announce full DCQ at Akatara.

[dunderheed] 03/10/2024 07:27

22594, good post MT.
22596, don't disagree but there should be an over riding TSR clause linked to "performance" as well IMHO.

[winnet] 03/10/2024 07:21

MT, it'll probably be because enough of the conditions of his LTIP, unrelated to the issue you notes, were met. The composition of LTIPs is not in the public domain.

[ashkv] 03/10/2024 07:20

Good to see PB putting a decent chunk of his money into JSE!!

Now please exceed your self set expectations/guidelines!!!

Good luck!!!

[mount teide] 03/10/2024 06:53

Yes, and very welcome.

Although for perspective, it's 1.5% of the circa $10m+ he has trousered, including circa $2m of 'overseas allowance support' in shareholders funds in the 6 years since the London AIM IPO.

In addition to his base salary he is getting around $300k a year in living expenses, plus performance bonus(up to 150% of salary), pension, health and life insurance cover.

With the share price still 15% below the IPO price, Paul Blakeley needs to deliver big time over the next 12-18 months.


ps: why the remuneration committee thought he was worthy of $830k in performance related pay over the two years - 2021 and 2022 - the period of the Montara Venture debacle, which saw the share price commence a period of freefall, has never been explained to shareholders.

[11_percent] 03/10/2024 06:46

Its a good sign.

[winnet] 03/10/2024 06:39

Okay, 150 grand is quite a lot of cash. Good stuff Blakely.

[nigelpm] 03/10/2024 06:11

Pretty clear message from Paul b. Excuse me mr Market what are you doing? :)

[mirabeau] 03/10/2024 06:03

Hefty director buy

[winnet] 01/10/2024 17:05

Technically, I thought this was in a nice place before the results. Now the moving averages are not our friends as we dipped below... I suspect we may have issues in the 31-33p area. A lot depends on the oil price, once through the 100 and 200 MA regions, it could be game on.

No more F-up's Blakley.

Note. I do feel that the failure of these Siemens electric motors is highly unfortunate, but I am beginning to wonder if JSE is just "one of those businesses". I mean, we all have friends that we stay away from, as they tend to be unlucky... is JSE just one of those business?

Note 2. I hope not.

[lloydypool] 01/10/2024 15:34

Greats posts on here at the moment, thanks KS in particular. Hopefully today's share price gain is repeated on a bit more of a regular basis and we can at least get to a new 12 month high.

I've increased slightly at just below 27p, so it would be nice to see the back of any number starting with a 2.

[birotop] 01/10/2024 15:27

Great work from both KS +MT, many thanks..

[king suarez] 01/10/2024 15:22

Thanks - you are welcome.

Took me an hour or so this morning to dig through the accounts and summarise. The answers are in there, broadly, but without familiarity of how they present things it's easy to make incorrect assumptions I'd say.

I would expect and hope that they have everything broken down segmentally internally for each field for management to look at so they know what the margins are - but we investors won't get to see this in an aggregated annual financial report.

I could perhaps IR for some historical info explicitly on Montara, but I don't know to what level of detail it would be reasonable to request!?

[mount teide] 01/10/2024 14:52

KS - That's a tremendous piece of analysis. Thanks.

'Perhaps this helps better explain some of the jump in operating costs? They do these big repair jobs every 3 to 5 years that are reported within recurring operating costs during the year, even though it's not consistently happening every year. If you dig into the notes it describes what kind of stuff they do, but I guess it is lumpy and doesn't help smooth the cost profile - ideally they should probably be estimated up front and amortised evenly across each financial year, but perhaps they are never sure on timing, scope of work and cost?'

You've indirectly identified and explained very well how the cost of inspecting and maintaining an FPSO to Classification Society Rules, where in-water surveys and continuous survey inspections are carried out in lieu of dry dockings, can typically create the potential for large cost variations yr to yr, due to the widely varying type of examination work carried out during each year of a 5 year continuous survey cycle.

[lord gnome] 01/10/2024 13:00

Not yet out of the recent down trend but certainly a welcome recovery since the momentary dip below 26p. Looking at the chart, 35p is quite possible on any good news to spark buying.

[king suarez] 01/10/2024 12:12

MT,

JSE first report 'operating costs' exclusive of any workover costs, non-recurring repair and maintenance and lease operating costs. They then report the opex/bbl inclusive of all these adjustments (subtracting workovers and maintenance but adding back lease operating costs) so you have:

2019 reported production costs $120m, adjusted production costs $113m
2020 reported production costs $105m, adjusted production costs $97m
2021 reported production costs $207m, adjusted production costs $120m

These are the total production costs for JSE and we have no obvious way of working out what the split is between Montara and Stag during these periods other than taking IR's word over their internal guidance? It is the 2nd adjusted production costs on which they report the opex/bbl.

For reference - adjustments:

2019 workovers -$30m +$16m lease costs
2020 workovers -$22m +$18m lease costs
2021 workovers -$67m +$11m lease costs (project 'Clover' adding to workover costs)

In 2021 workovers and repair and maintenance (R&M) were higher due to Covid. They report R&M in the initial production cost, but non-recurring R&M is removed in adjusted production costs. We're now told R&M costs will be higher on a recurring basis going forward to sustain the assets, partly due to cost inflation and partly due to them needing to do more work to keep things in good condition?

Here are some of the recurring R&M costs:

2019 - $24m
2020 - $23m
2021 - $45m - increase of $5m due to Penmal and $18m Stag/Montara due to 1/3 and 1/5 yr work costs
2022 - $60m - ? for Skua 11 repair works
2023 - $56m - FPSO storage tank repair works etc

Perhaps this helps better explain some of the jump in operating costs? They do these big repair jobs every 3 to 5 years that are reported within recurring operating costs during the year, even though it's not consistently happening every year. If you dig into the notes it describes what kind of stuff they do, but I guess it is lumpy and doesn't help smooth the cost profile - ideally they should probably be estimated up front and amortised evenly across each financial year, but perhaps they are never sure on timing, scope of work and cost?

Maybe I should ask for a job in IR?....

[mount teide] 01/10/2024 11:24

Hi KS

Its a calculation to establish how much the OPEX/bbl would rise if the higher Montara production figures in the earlier years had actually came in at the 2024 guidance of 5,500 bopd

For example:

With an OPEX cost of: $23/bbl x 9,000 bopd = $76m a year

Assuming the costs remained broadly the same at $76m/yr, at 2024 guidance of 5,500 bopd, the above calculation would see the OPEX lift to $38/bbl from the decline in production.

Its one of the calculations O&G operators who charter in FPSO vessels do to determine the increase in cost of the FPSO/bbl during the charter period to establish the potential lenghth of commerciality of the field, since the charter cost of the FPSO is by far the largest element of the total field operating cost.

Harbour Energy have an FPSO on long term charter on the Catcher Field for which they are contracted to pay circa $200m a year during the initial fixed 10 year charter period, with options to extend.

So, on 60,000 bopd of intial production the cost of the FPSO was $9.1/bbl. However, by the time the field has declined to 10,000 bopd the cost of just the FPSO would have surged to $55/bbl.

[king suarez] 01/10/2024 10:46

Hi MT,

"If an average of the actual OPEX costs for 2019-2021 were adjusted for the lower
Montara production figure guided for 2024 and 2025, it would increase OPEX to circa $33-36/bbl."

Sorry, I've read that sentence a few times and I can't work out what you're trying to say or how you derive that opex/bbl?