Business
Revised 2020 Capex Guidance and Update on Vietnam
Revised 2020 Capex Guidance and Update on Vietnam.
About this update from Jadestone Energy Plc
[{"type":"text","content":"\n \n \n RNS Number : 7616G\n Jadestone Energy Inc.\n 19 March 2020\n \n \n \n \n Jadestone Energy Inc.\n \n \n \n Revised 2020 Capex Guidance and Update on the Southwest Vietnam Gas Development\n \n \n \n \n \n \n March 19, 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, provides an update on its 2020 capital expenditure guidance.\n \n \n \n \n \n In light of current market conditions, and in order to continue to maintain the Company's strong balance sheet in these uncertain times, Jadestone is reviewing its 2020 capital programme. In the absence of the receipt of Vietnamese Government approvals of the field development plan (\"FDP\") for the Nam Du and U Minh gas field developments, Jadestone has decided to delay this project. Jadestone will remove substantially all capital spending which had been planned for the project in 2020, resulting in a 50%, or circa US$90mm reduction to its 2020 capex guidance for the year, which is now expected to be US$80-95mm. \n \n \n \n \n \n This decision is not just a recognition of the impact of new measures to conserve the Company's capital resources, but focuses on the largest and longest element of the Company's 2020 capital programme, and one which would not have contributed cash flow before Q4 2021. This had assumed receipt of Vietnamese Government approvals in Q1 2020, and as this has not been forthcoming, the expected first gas date for the project will be no earlier than late 2022.\n \n \n \n \n \n The remaining 2020 capital programme largely comprises infill drilling at Montara and Stag, and remains entirely discretionary. The Company will continue to evaluate all capital investments, including potential inorganic growth opportunities, based on anticipated accretive value add for shareholders, while maintaining balance sheet strength.\n \n \n \n \n \n As of January 31, 2020, Jadestone had an unaudited cash balance of US$116.0mm, including restricted cash of US$10mm and gross outstanding interest bearing debt of US$50.1mm. The Company expects to remain operating cash flow positive even at oil prices below US$30/bbl, owing largely to downside price protection through hedging and signif...