Jadestone Energy Share Discussion Threads

[crooky1967] 23/8/2018 17:34

Watching as well, thanks MT for the heads up over at TXP.

[mount teide] 23/8/2018 13:57

New thread with charts - header text courtesy of Zengas.

This is a first attempt at creating an ADVFN thread so would appreciate being cut some slack on its initial appearance and content.

[spangle93] 23/8/2018 00:49

Thanks, LCwanderer - the link in the Jadestone website investor page is now similarly filled

Ref the Indonesian asset - it seems that the previous PSC in which JSE participated as a legacy Talisman asset just expired in Feb this year. It's my understanding from reading e.g. AIM admission that there is no value ascribed from this asset, no legacy cost, nothing, in the company financials?
"The carrying value of the Ogan Komering PSC under oil and gas properties on the Company’s balance sheet is fully depleted"

Going forward
"the Board expects to reach satisfactory binding terms during Q4 2018, with participation to be effective from the commencement of the new PSC on 20 May 2018. To the extent Jadestone participates in the PSC, it will not be the operator of Ogan Komering and it would have less than a 40 per cent interest in the PSC. However, until definitive documentation is entered into, there can be no assurance that Jadestone will be successful in its negotiations for participation in the PSC or the terms on which any such participation may be available to Jadestone."

If all is concluded satisfactorily, is there any significant cost to participation in the revised PSA, or merely just the resumption of payment as per the agreed equity for opex and capex.

[lcwanderer] 22/8/2018 21:13

Jadestone presentation from earlier today...


hxxp://www.theoilandgasconference.com/togc-webcast/jse/

[captainfatcat] 22/8/2018 18:07

Watching here as well.

[mount teide] 22/8/2018 17:37

Starting to get on a few more radars?

7.8 million transaction volume today - with two very large individual trades of 3.04m and 2.34m.

Today's volume was around 100 times the average daily volume over the preceding week.

[mount teide] 20/8/2018 23:13

Yes, thanks to Zengas and Spangle.


In the 12 months post the Stag acquisition the management's performance in terms of raising production and reducing operating costs is remarkable and bodes well for the Montara assets which the management believes holds similar potential.

'The Company has already identified multiple operational improvements at the Montara Assets and believes it can execute these improvements to increase production, whilst also reducing fixed operating costs by up to 20%. The Company has already made significant cost savings at Stag, reducing fixed operating costs by 35%, cutting sustaining capital expenditure and stabilising production. The Company is now focused on increasing production at Stag through drilling infill wells over the next two years and completing well workovers.

The limited number of qualified offshore operators in Australia looking to deploy second phase specialisation, and Jadestone’s recently proven ability to obtain regulatory approvals, in particular approval as operator culminating in the transfer of operatorship of Stag in July 2017, proved a significant competitive advantage when engaging with the seller.

Reflecting on the savings obtained at Stag to date, the Company is confident of its ability to deliver significant additional value creation at the Montara Assets following a successful transition period and subject to the required investment by the Company.'


Stag

'Jadestone is the 100% owner and operator of the producing Stag oil field located offshore Western Australia in the Carnarvon Basin. Stag and its associated infrastructure were acquired by Jadestone on 11 November 2016 for a headline price of US$10 million plus customary working capital adjustments and potential contingent payments. At acquisition Stag had 2P reserves of 14.6 MMbbls oil and since that time Jadestone has increased 2P reserves to 17.1 MMbbls (gross and net), net of circa 1.6 MMbbls of production between the acquisition and 31 December 2017.

Since completing the Stag acquisition in November 2016 the focus of the Jadestone operating team has been to optimise production operations, reduce costs and identify and execute a work programme to increase production.

In executing these initiatives, Stag has seen production stabilise and then increase to a current level of 3.6 mbbls/d (up from an average of 2.6 mbbls/d in Q2 2017), operating costs (excluding workover) reduce from US$43/bbl (for the first half of 2017) to US$32/bbl (for the second half of 2017, following transfer of operatorship to the Company in July 2017) and workover and other sustaining capital costs reduce by circa 50 per cent.

The Company has been able to achieve these gains through a re-organisation of management structures and processes; incentivisation of the workforce towards safe production operations; re- negotiation of contracts; and a reduction in workover duration and cost.

The Company is now focused on increasing production and intends to drill five in-fill wells by the end of 2020 (being four producers and one water injector), targeting an average of 1.1 MMbbls of oil for each producing well, which also provides additional reserves from the field as a whole through field life extension. The initial production rate of each well is expected to be circa 1.2 mbbl/d before following a natural decline rate. The additional production derived from the first infill well to be drilled is expected to further reduce 2019 per unit operating costs (excluding workovers) to US$25.9/bbl and enhance cash flow resiliency, even at low oil prices.'

'Reflecting on the savings obtained at Stag to date, the Company is confident of its ability to deliver significant additional value creation at the Montara Assets following a successful transition period and subject to the required investment by the Company.'

[euclid5] 20/8/2018 12:09

can't find any broker note's on them in RT

[zengas] 20/8/2018 10:55

They are intent on picking up further assets.

One potential asset that is not in the numbers above is the 05-1B + C PSC.

There's a dispute with Teikoko where they were selling JSE 30% in the PSC blocks of 05-1B + C for $14.3m

"Block 05-1 holds significant appraised gas resource capable of being developed quickly and put onto production at high margins and with material value accretion within our portfolio.

The Block 05-1 PSC holds two fully appraised gas and condensate discoveries, Dai Nguyet and Sao Vang, in close proximity to the Nam Con Son gas transportation pipeline and existing production facilities. These gas discoveries are strategically located to supply gas to operating power generating complexes in the industrial center of Southeast Vietnam. Partners in the blocks are Idemitsu Oil and Gas Co. Ltd. (“IdemitsuR21;) and JX Nippon Oil & Gas Exploration Corporation each with a 35% working interest."

If this one doesn't go ahead, there are other opportunities. Given the price outlay, you can see what can potentially be picked up. Majors have diversified by diluting or selling interests.

Majors and IOCs have sold off 800 mmboe in the last 3 years (page 5) from mid life and mature fields.

Page 5 "The region holds 57 billion boe of discovered undeveloped resource, 40% of which is economic today (circa 23 billion boe).

"Jadestone is positioned to take full advantage of this maturing region today"

Natural gas demand forecast rise by 4.5% per annum to 2025 with supply declining post 2020.

1.9 bcf/day forecast supply gap in 2020 (ie 316,000 boepd supply gap alone while this figure forecast to rise to 780,000 boepd by 2025).

Oil demand growth to average 2.4% pa to 2025 with premium pricing.

[euclid5] 20/8/2018 10:17

Thanks for your posts Zengas & Spangle,

The NPV values at $885m / £697m (using $1.27 to the GBP) come to 151p

128% discount to NPV value

I shall check Research Tree to see if there is a BN issued

[zengas] 20/8/2018 09:12

Latest August Presentation.
45.3 mmboe P2 + 117.5 mmboe unrisked 2C .

30 mmboe moving to 2P in Q3 2019 with project sanction = 75 mmboe 2P

Just shy of 14,000 bopd Australia with ongoing infill drilling from Q3 2018 - Q3 2019 to lift production further.

Q4 2018 Ogan Komerang (OK) new PSC additional 1400 boepd net + new CPR with reserves/resources to come. Significant upside 1155 sq km PSC.

Montara NPV $479.5m (£355m).
Stag $84.2m (£62m).
Nam Du $226m (£167m).
U Minh $96m (£71m).

Total $885.7m (£655m). Excludes OK PSC. Using ex rate £1=$1.35.



461m shares @ 35p = £161m M/cap.

[zengas] 15/8/2018 15:52

Thanks Spangle

I look for production and assets that have a better chance of success than most and which i can get into that underpin my entry point/valuation. I look for companies like Savp/JSE that can make low risk discoveries on big potential reserve numbers etc that will be sold on/bought out rather than existing for years. Was fortunate enough in the likes of Cove in Mozambique which didn't have an oil/gas industry or much in discoveries and IEC in Russia that were gone in 2.5 and 3.5 years. 26-12 bagger for Cove depending where you got in at and IEC up to 50 bagger (which at one point was actually running at more than 70x upside). GKP also bfore it ran into difficulties with it's debt 3-4 years later. All low risk exploration potential. For Cove big discoveries lay adjacent in the Tanzanian side and geology knows no man made surface borders so was compelling for me to invest. Savp has equally compelling low risk acreage and evidenced so far with 4 out of 4 successes chasing 2.8 billion bls risked, since their drilling started at the beginning of April next to CNPC that have found over 1 billion bls P2 and built infrastructure, refinery and pipeline with more to come - so opening up for bigger players than Savp. I expect Savp will also be a t/over target as JSE at some point in the future. Huge investments continuing to pour into Nigeria especially for gas and Savp covered 90%+ for gas on investment grade customers via Accugas by World Bank guarantee. JSE are in the right markets. PTT of Thailand bought Cove and shows how energy hungry the region is where JSE operate. Danger in lots of smaller companies is that they are small chasing big dreams on higher risk projects and when they get hit for cash on poor news the reasons to invest don't become as compelling for upside no matter where in the world they are. Saw SQZ but haven't followed them other than a rough read over in the past.

[zengas] 15/8/2018 14:34

Hi Spangle, more exposure in the UK I believe rather than Canada listing. More Cos planning to list here. I've never bothered creating threads before and just wanted to get some discussion up and running so if anyone else appears and wants to create a thread with charts etc please do (Charts bit early at this stage imo). No broker note yet that I've come across. More assets/opportunities to come.

The very recent webcast was good but no link now as far as I can see which says new presentation to come shortly but it included the CPR for the 2P asset value on just some of their projects at $564m/£420m with 3P at $915m/£650m (page 16).

Great CEO in building value. Huge vote of confidence with significant institutional investor holdings at 66% for those above 3% which could mean a low free float if there are others that are in the up to 3% range. I expect this to get some fair decent coverage too which will raise the profile.

I used to be the same keeping my interest in companies to below £50m, and missed out on and realised that some of the larger ones at £100m-£200m range could still be 10-20 baggers and beyond because they were a lot further down the road with their operations. Depends what your timescale and ultimate target is but I think post September this could be on the move.

[spangle93] 15/8/2018 14:14

Placeholder:

Aug 8th 2018 - For the purposes of the Disclosure Guidance and Transparency Rules, the total number of voting rights in the Company with effect from 8 August 2018 will be 461,009,478.

[spangle93] 15/8/2018 13:47

Hello Zengas - thanks for starting a thread- I looked a couple of days ago when JSE launched and couldn't find anything on ADVFN. Any chance you could add daily and longer term share price graphs to the header? I've no idea how to create a thread, so I don't know if this is easy or not.

Jadestone is a bit larger than the average M/cap I prefer, which is sort of UPL / TXP size. In fact, I was looking at it from the perspective of project work from the Vietnam developments cos Talisman is/was a client ;-) It's therefore harder to identify whether it's undervalued

Also, for industry workers, the Montara name evokes the reaction as Macondo which happened 6 months later, so they might possibly want to consider a name change!

Do you know why they chose to list on AIM rather than elsewhere? Was it just to raise the funds to purchase the Montara asset, or were there other reasons why a Far East based company wouldn't list on a bourse closer to home?

Will read up more -do you know if there's a broker note anywhere in the open WWW
TIA

[zengas] 14/8/2018 17:02

Extract (pre Montara acquisition) from 8 months ago re Jadestone CEO

Head-to-Head interview with Amanda Battersby, Upstream
www.upstreamonline.com

Blakeley on hunt for an elusive gem with Jadestone

Ambitious boss of independent builds on extensive experience he gained with Talisman Energy in Asia-Pacific region and North Sea.

Jadestone Energy chief executive Paul Blakeley is clear about his mission — spearheading the Singapore-headquartered independent to become the same regional success story he achieved with Talisman Energy in the Asia-Pacific region, and earlier in the North Sea too.

Jadestone’s existing portfolio includes the wholly-owned producing Stag oilfield off Australia, a half share in the producing Ogan Komering onshore block in South Sumatra, Indonesia, two gas fields set for development in Vietnam, and exploration assets in Vietnam and the Philippines.

He notes that many players, including industry heavyweights, have started to rationalise their portfolios, while some US independents have retreated from South-East Asian E&P for reasons such as balance sheet pressure, wanting to focus on unconventionals and, in some cases, even pressure from activist investors.

“That leaves the field wide open,” Blakeley says.
“What we really want to do — and it’s not rocket science, or clever or new — is to fill that space that I think is increasingly left open for a mid-size capability… A company with the ability to operate large fields developed by the majors but bringing additional skills in mature field asset management — entrepreneurial, lean on process, low-cost and efficient — and excited by the small add-on things that create a lot of incremental value,” Blakeley says.
“The opportunity to pursue these sorts of things is what brought the team at Jadestone together"

Talisman’s rise
Blakeley left Arco in December 1994 to join Talisman Energy as a senior vice president, accountable for the company’s North Sea business.
Under his leadership, Talisman — via asset enhancement as well as mergers and acquisitions — became the UK North Sea’s second-largest operator, with production of 160,000 barrels of oil equivalent per day, generating more than US$1 billion in annual free cash flow.

About 12 years ago, Blakeley then came to Asia to run Talisman’s regional business and create the same value growth story.

In 2011, he moved to Singapore, which is also home to the youngest three of his five children, while the eldest two are at university in Australia.

Blakeley has been officially recognised for his services to the oil and gas industry. In 2002 he was conferred an Officer of the Order of the British Empire by Queen Elizabeth II.

[zengas] 14/8/2018 09:52

Jadestone Energy.

Oversubscribed $110m placing at 35p. August 2018

Holdings declarable over 3% = 66% of stock held by -
Tyrus Capital 23.8%, Livermore Partners 6.92%, Ontario Teachers Pen Plan 4.2%, West Face L/T Global Opp 3.42%, Odey Asset Mngt 8.28%, Miton Asset Mngt 6.43%, Fidelity Intnl 3.25%, Baillie Gifford 3.21%, Capital World 3.18%, GLG Partners 3.04%.
Directors .86% (one director is m/d of Livermore which has 6.92%)

461m shares @ 35p = £161m m/cap.
$120m debt drawdown being paid for acquisition of Montara - Effective date 1/1/18 so will be some adjustment from that date to price now. Term 3 years at Libor+3% so about $47m/yr average.

Revenue should with Montara/Stag/Komering be close to 15,000 boepd (96% oil) and $350m+ revenue.
Potential 3k increase between Q4 and end Q2 next year at Montara & Stag - possible 18k boepd. (96% oil).
Strong cash flow to add further production asssets and cover drilling.
6 Ex Tailsman people. CEO took Tailsman Asia from 2 asset business/45k boepd to 500m P2/150k boepd and $6-$7b value. Ex Shell/Chevron/Maersk/Schlumberger/BP/Marathon.

Australia
Montara (100%) 28.2 mmbo P2 reserves + 10,300 bopd.
$2/b premium to Brent.
9 producing wells (Montara 4, Skua 2 and Swift/Swallow 3 + 1 injection).
Increase production by c 1700 bopd in 2019
2 infill wells included in 2P reserves Q2 + Q3 2019.
3 additional infill wells targetting 5.3 mmbls additional resource from 2020+.
Exploration upside - 8 leads identified.
Spare capacity in FPSO - Allows nearby discoveries to be quickly monetised.
Hub consolidation opportunities for tie-back of shut in fields and stranded discoveries.

Stag (100%) 17.1 mmbo P2 reserves + 3600 bopd.
11 producing wells + 3 injectors.
Infill well Q4 2018 targetting 1200 bopd.
2 wells planned Q2 + Q3 2019 and 2 in 2020.
2 near field exploration prospects identified.
---------------------------------------------
Ogan Komering PSC Indonesia to be 50% share on signing (early-mid Q4 possible).
Current 1400 boepd net (65% oil/34% gas) $5/b discount to Brent. Gas price $6/mcf.
*Independent reserves evaluation to be made when participation in psc confirmed*.
Early development of 3 gas fields.
Exploration upside.
Bolt on opportunities.
-------------------------------------
South West Vietnam
93.8 mmboe unrisked 2C - Project sanctioned for H2 2019 (2C to 2P)
First gas 2021
--------------------------------
Other assets Vietnam/Philippines details
Website

August 2018 Presentation

[hpotter] 23/9/2009 22:47

I've yet to recieve the circular that was posted on the 12th Sept. Has anyone else received their's?

[asmodeus] 28/8/2009 21:11

This was their explanation:

Both of the announcements were made on the same day (24 August 2009) however related to different days.

14.40 relates to 21 August 2009

11.87 relates to 14 August 2009

The latest therefore is 14.40 as at 21 August 2009.

[hpotter] 28/8/2009 20:36

asmodeus,
I think they forgot to issue the 14 August NAV RNS and when they issued the 21 August one felt obliged to also issue the 14th one.

If they are going to extend the life of JSE they will need to make a proposal PDQ. If not, there should be a few pence per share due to the income holders.

O/T. JDT (income & growth) is starting to look like a bargain once again. 30% dividend (2x current price) and, assuming the good times return sometime before 2017, a substantial NAV.

[asmodeus] 26/8/2009 14:27

There wrre 2 NAV announcements dated 24tyh Aug. The first says BAV for Grd. Inc. Shrs. = 14.40; the second says 11.87 ! (I have Emailed them)

[robizm] 07/5/2009 19:30

the nav was 9.9p on splitsonline at yesterdays close. i think they would extend it if ord shares have a decent nav.

[hpotter] 07/5/2009 13:24

Robism,
Do you think they might extend the life of JSE, similar to JDT?
I like the way the share price keeps moving without any trades. I suppose the NAV must be being monitored.