Jadestone Energy Share Discussion Threads

[dorset64] 24/1/2019 16:39

Now well over 65% now in insti's hands alone.

[king suarez] 24/1/2019 16:37

Pretty undervalued imo, but one of many bargains on AIM currently!

[duckdown] 24/1/2019 16:21

What's the deal here then?

[alamaison5] 24/1/2019 16:14

Well, that won't help, lol. 35.5p or nothing.

[mount teide] 24/1/2019 08:06

RNS - Hedge Fund Tyrus Capital buy another 8.5 million shares increasing their total holding to above 25%.

[alamaison5] 23/1/2019 17:50

Remember that millions and millions have changed hand at 35p.

[mount teide] 18/1/2019 14:06

Small-Cap Stock With Four-Bagger Potential - Value Walk



Value Investing

'Two years ago, in the December 2016 issue of Hidden Value Stocks, we profiled David Neuhauser, the founder of Livermore Partners.

The stock Neuhauser picked out as his favorite small-cap was Jadestone Energy. The partnership was initially attracted to Jadestone as it believed it could unlock significant value by replacing the management, and using the business to acquire depressed operating assets. Here’s David explaining his thesis back in 2016:

"When we first took a position in Jadestone, we saw an opportunity to transform the company by replacing the management and board and using the business to acquire depressed operating assets others must sell to de-lever their balance sheets and focus on core basins.

Producing assets (not exploration) with real cash flows and deep value. We feel that we’ve made excellent progress on this. New management has been brought in, and the company has been transformed.

New Jadestone is built on an “acquire and exploit” strategy not unfamiliar to some domestic E&P companies, whereby bringing operating capability and new capital to under-invested assets (or assets in the hands of super-majors for whom materiality in future activity is a concern to them), can add significant incremental value.

The difference with New Jadestone, compared to North American plays is that the company is focused on Asia Pacific opportunity where the returns are on average two or three times better than North America (IHS Herold annual performance reports), where the competition is very limited and therefore purchase price is very modest (often assets are sold on bilateral deals – no competition), and finally where opportunity options are on the increase."

He went on to say that he believes Jadestone could ultimately be worth $2 per share or more, as the company continues to roll-up assets:

"Timing is tough to determine, but today even with our capital raise, the shares are very cheap. Trading at only $15,000 a flowing barrel and a discounted 0.30 net asset value per share with no debt, $20 million of cash on the balance sheet and plenty of development opportunities in the pipeline this is a very compelling opportunity where we believe the downside is limited."

Two years later, and plenty has changed. The stock is up 50% and recently completed a significant acquisition that has the potential to throw off $100 million in annual free cash flow.'


A detailed update on Jadestone is available by subscription to their Hidden Value Stocks newsletter, published four times a year.

[someuwin] 18/1/2019 11:50

Impressive list of institutional holders...

[senn1] 18/1/2019 10:27

45 recent high should be tested soon


Any sniff of a divi 70p

[someuwin] 18/1/2019 10:21

I'll keep adding at these prices.

Way too cheap - imo.

[zengas] 16/1/2019 20:04

Thanks Spangle.

Do you know if PTTEP still have the undeveloped Audacious and Tenacious oil fields and the Oliver Gas & oil discovery above (north-east of ?) Montara.

They had a sizeable near 100% interest I thought and were going to develop these 2017 but given they are now perceived non core and they have already shed the bigger Montara asset, surely they are even more non core and be potentially fairly cheap.

I'm just wondering with JSEs involvement with PTTEP (personnel/deal making etc) could they possibly pick these up ? It would certainly fit in with JSEs strategy.

[spangle93] 16/1/2019 18:37

Zengas - one of the nearest sizeable fields to Montara is the Crux field, which is under FEED just now I believe. That's a gas development, to deliver dry gas through a long pipeline to the prelude FLNG vessel to supplement the Prelude field.



Likewise Ichthys is likely to need third party gas in the coming years, and regulators will not appreciate venting of Montara gas in the light of climate change promises, hence will be keen for alternative end points.

So I think opportunities for Montara gas export are forming.

Development of the Montara neighborhood to the host facilities would improve Opex there, and probably be cheaper than another company purchase

[alamaison5] 16/1/2019 16:54

SENN1:
Your post will not have any influence on the buyer at 35p to sell, lol nor me to buy lol x 2

[alamaison5] 16/1/2019 16:53

AND:
senn1 - 14 Jan 2019 - 08:50:44 - 274 of 286 Jadestone Energy (JSE) - ex Talisman Energy Team's New Venture - JSE
With Jadestone (JSE), our thesis continues to manifest along with very strong returns for this exciting and growing oil producer. Jadestone successfully IPO'd in London in August under the symbol, JSE LN.

see link

JSE executed a $200mm transformational Australian asset acquisition from Thailand giant, PTTEP. We hold a seat on the Board of Directors of JSE, added to the equity position on the raise, and continue to focus hard on its growth trajectory.

Jadestone has a chance to be a true small cap champion and the potential to be a $1B company in the face of Brent oil's uplift near $75 a barrel. Adding to this are the strong free cash flows from the new Montara acquisition, which on a proforma basis, will allow $100mm of annual FCF for a company today trading at a large discount (1.5X EV/EBITDA for 2019) to any peers. We continue to feel Jadestone is in a great position to prosper in the years ahead thru both acquisition and organic growth and reflects the strength of an excellent management team. My hats off to CEO Paul Blakeley and his team!

[senn1] 16/1/2019 16:51

Livermore Partners

Mon 07:57

With Jadestone (JSE), our thesis continues to manifest along with very strong returns for this exciting and growing oil producer. Jadestone successfully IPO'd in London in August under the symbol, JSE LN.

see link

JSE executed a $200mm transformational Australian asset acquisition from Thailand giant, PTTEP. We hold a seat on the Board of Directors of JSE, added to the equity position on the raise, and continue to focus hard on its growth trajectory.

Jadestone has a chance to be a true small cap champion and the potential to be a $1B company in the face of Brent oil's uplift near $75 a barrel. Adding to this are the strong free cash flows from the new Montara acquisition, which on a proforma basis, will allow $100mm of annual FCF for a company today trading at a large discount (1.5X EV/EBITDA for 2019) to any peers. We continue to feel Jadestone is in a great position to prosper in the years ahead thru both acquisition and organic growth and reflects the strength of an excellent management team. My hats off to CEO Paul Blakeley and his team!

Good read and forgetting short term movements why this is a good stick to hold, also order where the 22mill is going Divi anyone???

[alamaison5] 16/1/2019 16:39

Perhaps perhaps... or perhaps we should all sell up so you can buy back in cheaper :)

INDEED INDEED. TRADE DON'T INVEST! THIS IS MY MOTO.

INVESTORS ARE POTENTIAL TRADER WHICH HAVE HAD A BAD TRADE, LOL.

I hold: LEK, HNR, CORO, GEO, FFWD.

[king suarez] 16/1/2019 15:17

Why buy any share, when people will sell as the price rises?

Perhaps the new institutional investor will look for more than the current share price to offload their recent purchases, and perhaps they will be transferred to another II at a price above 39p, that does not affect current shareholders.

Perhaps the price of oil will rise higher, perhaps the massive cashflows being produced here will be reinvested in assets providing even greater capital growth and/or sizeable dividends that reward shareholders for holding..

Perhaps perhaps... or perhaps we should all sell up so you can buy back in cheaper :)

Perhaps... perhaps... perhaps...

[alamaison5] 16/1/2019 14:58

The buyer at 35p will sell whenever it JSE rises.
Therefore why buy now when this is going lower?
Millions and millions have changed hand at 35p.

[zengas] 16/1/2019 13:43

Bearing in mind the cash build nearing $100m+ and ongoing cashflow before drilling kicks in, they planned to do some well workovers instead at Montara to boost production and these could start now that operations there are back online. Just 1 infill well later this quarter at Stag.

They are looking at further acquisitions and re-entry into the Ogan Komering PSC is still under negotiation.
I'm hoping that they will pick up other transformational assets that the majors are giving up and other low cost assets considering the cash build and ongoing monthly free cash flow on a par with what they paid for both Stag and Montara. (Without a hub, they are of little value to others).


They were able to buy Stag from Santos and Quadrant for $10m giving them over 3,000 bopd with 14.6 mmbo P2.

Montara was bought for $195m giving over 10,000 bopd with 28.2 mmbo P2.

What might $50m-$60m - $100m+ buy at some point ? in relation to what was paid for Stag and Montara given their size and production.

Given they have Montara as a hub they have said this about the possibilities -


"In the blocks neighbouring the Montara Assets there are multiple oil and gas discoveries and previously suspended fields. Many of these discoveries are currently stranded as they are not of a size that can economically justify a standalone development. Currently the Montara Assets infrastructure is the only infrastructure in the area through which these discoveries could potentially be produced. The Company may in the future explore opportunities to monetise these assets which may be through acquisition, farm-in or third party tariff arrangements;

and re gas - "Within the Company’s blocks, there are currently stranded discovered gas resources which are currently not of a size which would make commercialisation economic. However, within neighbouring blocks there are also other similarly stranded gas discoveries and the Company could in the future explore joint development solutions for these discoveries. This will, however, remain subject to pricing, technology and neighbouring activities."

[meteors] 16/1/2019 12:50

How long until the highs of 45p again?

I expect news about the 2 new infill drilling wells at Stag this year will boost share price once a dates is announced?

[alamaison5] 16/1/2019 12:40

I am indeed:
BID/OFFER
39.20p 39.40p
DAY CHANGE
-0.40p (-1.01%)

What do think? 36/37/38p?

[mount teide] 15/1/2019 15:30

alamaison5 - it was a late published trade from 9th January, when some 50m plus exchanged hands over a few days.

09-Jan-19 - 14:15:35: 8,500,000 Sell*
09-Jan-19 - 18:13:58:-8,500,000

As a short term trader you're clearly keen to secure a lower re-entry price - good luck with that - i would suggest most here have invested on the basis of where the company valuation is likely to be in 2-3 years rather than 2-3 days/weeks/months.