Business
Response to Oil Price Volatility
Response to Oil Price Volatility.
About this update from Jadestone Energy Plc
[{"type":"text","content":"\n \n \n RNS Number : 5691F\n Jadestone Energy Inc.\n 10 March 2020\n \n \n \n \n Jadestone Energy Inc.\n \n \n \n Jadestone Energy Response to Oil Price Volatility \n \n \n \n \n \n \n March 10, 2020-Singapore: \n \n Jadestone Energy Inc. (AIM:JSE, TSXV:JSE) (\"Jadestone\" or the \"Company\"), an independent oil and gas production company focused on the Asia Pacific region, notes the recent fall in global oil prices, with the front end (May 2020) of the Brent oil price forward curve trading yesterday at around US$36/bbl, mid-morning UK time. \n \n \n \n \n \n Highlights\n \n \n \n \n \n · \n Significant downside protection in place. Half of Montara's production is hedged at an average price of US$68.45/bbl through to September 30, 2020, resulting in a blended realised price of c.US$60/bbl based on current oil prices (including latest realised premium); \n \n \n · \n Realised pricing at a substantial premium to Brent. Stag most recently achieving a premium of US$21/bbl and Montara realising US$7.60/bbl;\n \n \n · \n Cash flow resilience at low oil prices. The Company expects to remain operating cash flow positive in 2020, even at oil prices below US$30/bbl;\n \n \n · \n Strong balance sheet. Cash balance of US$116.0mm at January 31, 2020, with outstanding debt of US$50.1 mm; and\n \n \n · \n Entirely discretionary forward capital programme provides the Company with maximum flexibility to adjust spending, in line with the macro environment.\n \n \n \n \n \n Against the current backdrop, the Company's existing hedging programme provides very strong downside oil price protection. Half of Montara's production is hedged through to September 30, 2020 at an average Brent swap price of US$68.45/bbl, or around US$76/bbl inclusive of the premium most recently achieved of US$7.60/bbl. On a blended basis, and based on the current front end of the forward curve, this implies a Montara average crude realisation of around US$60/bbl through to the end of September. \n \n \n \n \n \n Stag, as a heavy sweet crude, is enjoying an even stronger premium to Brent, with the current month's lifting secured at a US$21/bbl premium to Brent.\n \n \n \n \n \n As per our statement on February 25, 2020, the Company's guidance for cash opex/bbl in 2020 is US$20.50-23.50/b...