Jadestone Energy PLC · LSE:JSE
Jadestone Energy — Q1 2019 Earnings Presentation
27 slides from Jadestone Energy's earnings presentation, May 29, 2019
Slide 1: Q1 2019 Quarterly Results Review
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level Q1 2019 Quarterly • Fifth level Results Review May 29, 2019 www.jadestone-energy.com 1
Slide 2: Disclaimer & Advisories
Disclaimer & Advisories Disclaimer You must read the following before continuing. The following applies to this document, the presentation of the information in this document and any question‐and‐answer session that may follow (collectively, the "Presentation"). In viewing the Presentation, you agre
Slide 3: Advisories
Advisories In addition, statements relating to “reserves” and “resources” are deemed to be forward looking statements as they involve the implied assessment based on certain estimates and assumptions that the reserves or resources described can be profitable produced in the future. There are numerou
Slide 4: Agenda
Agenda Webcast presentation: quarter ended March 31, 2019 Paul 1 Blakeley ⚫ Quarter highlights, operational update, asset performance Dan 2 Young ⚫ Financial review Paul 3 Blakeley ⚫ Outlook, conclusions 4 Team ⚫ Q&A Session 4
Slide 5: Jadestone Energy, corporate overview
Jadestone Energy, corporate overview Overview Q1 2019 highlights Financial Statement extract ⚫ Stag 49H infill well completed post quarter end As at, US$mm Mar-19 Dec-18 — On stream at 1,400 bbls/d, currently producing at a Cash1 84.8 81.6 controlled rate of 1,200—1,400 bbls/d Total assets 768.6 729
Slide 6: Stag 49H infill reservoir results—as expected
Stag 49H infill reservoir results—as expected Reservoir mapping while drilling Predicted, partial swept area ~225m with a 7-8m oil column ~200m with a 6m oil column Blank pipe to 1,830m MD Well results met or exceeded pre-drill expectations ⚫ Well came on stream at 1,400 bbls/d, currently producing
Slide 7: Stag achievements and outlook
Stag achievements and outlook Optimising operations to grow reserves, reduce costs and add value Overview Operating cost reductions1, US$/bbl ⚫ Production—averaged 1,941 bbls/d in Q1 Prior operator Jadestone operator 2019, impacted by weather-related downtime and delayed workovers due to 49H drillin
Slide 8: Montara major offshore activity in 2019
Montara major offshore activity in 2019 Overview Summary of 2019 offshore major activities Montara platform, subsea wells and FPSO ⚫ Low risk infill well, targeting unswept oil Montara H6 along western main fault infill well ⚫ Developing 1.8mm bbls 2P reserves ⚫ Adds >3,000 bbls/d production in 2020
Slide 9: Production optimisation
Montara achievements to date Select production optimisation & opex reduction initiatives Jadestone action Status Expected impact Production optimisation ⚫ Skua-11 and Swift-2 kicked off successfully, without gas lift ⚫ Accelerated 2,500 ⚫ Production maintained through lowering of separator ⚫ 100% bb
Slide 10: Nam Du/U Minh—progress on development
Nam Du/U Minh—progress on development Pre-sanction workstreams are on schedule to support FID later in 2019 Select define phase/pre-sanction workstreams Heads of Agreement signed April 25, 2019 ⚫ Facilities & pipeline FEED Resources—covers all discovered resources from the Nam ⚫ WHP specialty engi
Slide 11: Financial review—key headlines
Financial review—key headlines Strong balance sheet, demonstrated strong cash flow generation Overview Average production and hydrocarbon prices ⚫ Another record quarter Mar 31, Dec 31, Quarter ending — Net revenue of US$56.4mm, up 25% over the prior quarter 2019 2018 — Record operating profit after
Slide 12: Financial results—quarterly cash bridge
Financial results—quarterly cash bridge Montara demonstrating strong positive cash generation US$mm 125 47.1 Cash balance Qtly ordinary cashflow 4.0 Qtly non-recurring cashflow 2.5 1.7 100 11.5 16.3 4.9 8.5 13.2 84.8 75 81.6 4.4 50 Montara: strong cash generation, in part due to the US$22mm adjustme
Slide 13: Financial results—Q1 2019 EBITDAX
Financial results—Q1 2019 EBITDAX Q1 adjusted EBITDAX reconciliation 3 months ended March 31, 2019 Depletion, Less depreciation, 3 months ended US$’000s Reported non-recurring exploration Adjusted March 31, 2018 Revenue 56,366 5,752 - 50,614 18,287 Production cost (22,721) (1,411) - (21,130) (12,809
Slide 14: Montara capped swap summary
Montara capped swap summary Overview Capped swap summary Vol, bbls Dated Brent US$/bbl ⚫ Swaps cover 600,000 90 approximately 50% of planned 2PD production for first 24 months of Jadestone ownership 500,000 ⚫ Average swap prices — US$71.72/bbl for 2019 400,000 75 — US$68.45/bbl for Q1- Q3 2020 ⚫ Ups
Slide 15: 2019 guidance: production, major spend and opex
2019 guidance: production, major spend and opex Re-entry into Ogan Komering assumed effective Oct 1, 2019 Full year average production, boe/d Full year major spend1, US$mm Full year base opex2, US$/boe 40 20 0 Stag infill & other Montara umbilical Montara Stag Ogan Jadestone Montara LWI Montara seis
Slide 16: Jadestone portfolio work programme
Jadestone portfolio work programme Fully funded programme of material near-term catalysts 2019 2020+ Asset Country Activity Q1 Q2 Q3 Q4 Implement Jadestone operating Montara philosophy Operations Montara Montara production optimisation Transfer of operatorship Montara to Jadestone Stag Infill drilli
Slide 17: Compelling investment opportunity
Compelling investment opportunity Jadestone currently trades at a deep discount to core NAV Total tangible asset value, US$mm Total tangible asset value, GBP/share US$mm Stag 2P Montara 2P £ /share Stag 2P Montara 2P 1,250 2C resource 1 Management estimates 2 2C resource 1 Management estimates 2 2.0
Slide 18: Jadestone Energy investment highlights
Jadestone Energy investment highlights A strategy that works, a high value portfolio, and a plan for value accretive growth ⚫ Proven in-region management team with a track record of value creation and shareholder return generation Proven regional management ⚫ End-to-end capabilities through the upst
Slide 19: Appendix
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level Appendix • Fifth level www.jadestone-energy.com 19
Slide 20: Montara activity in 2019
Montara activity in 2019 New well H6 drains an unswept area to the west of the Montara Field Forecast NFA remaining oil map Jan, 2031 Overview ⚫ Developing 1.8mm bbls 2P reserves and more than Proposed H4 sidetrack 3,000 bbls/d production in 2020 (2C) ⚫ Utilising an existing unused slot on Montara w
Slide 21: Montara activity in 2019
Montara activity in 2019 Well intervention on Skua-11 heel removes immediate need for an infill well Skua-11: top view & cross section Overview ⚫ In the past, Skua-11 was producing only from Skua-10 its toe ⚫ Inflow control valve (ICV) has not been Planned Skua-12 functioning since well completion c
Slide 22: Montara activity in 2019 (cont’d)
Montara activity in 2019 (cont’d) Select production optimisation & opex reduction initiatives Production optimisation Opex reduction ⚫ Swift, Skua and Swallow well ⚫ Instilling Jadestone operating philosophy, interventions planned for Q2 including centralised support group and ⚫ Production optimisat
Slide 23: Jadestone’s Southwest Vietnam gas assets
Jadestone’s Southwest Vietnam gas assets Developing a significant gas resource into the energy-short domestic market Overview Map of blocks 46/07 and 51 including evacuation route Jadestone W.I. 100%1 Operator Jadestone 496.8 bcf 93.8 2C resources2 mmboe 11 mmbbl Overview ⚫ Significant shallow water
Slide 24: Nam Du/U Minh phased development concept
Nam Du/U Minh phased development concept Overview of field development plan Illustration of wellhead platform Description of overall development concept ⚫ Minimum facilities, unmanned, wellhead platforms installed by jack-up drilling rig ⚫ 2 production wells per platform ⚫ Central processing facilit
Slide 25: Nam Du and U Minh development schedule
Nam Du and U Minh development schedule Roadmap to first gas Key milestones Vietnam PSC milestone Project delivery phase Reserve Outline development Field development assessment plan (ODP) plan (FDP) report (RAR) Project execution Concept selection phase Project define phase phase Q1 2016 Q4 2016 Q4
Slide 26: Vietnam domestic gas prices
Vietnam domestic gas prices Established market prices of $7—$9/mmbtu Well-head gas pricing in Vietnam, $/mmbtu US$/mmbtu 10—12 12 9—10.5 10 ~9 7—8 8 6 3—4 4 2 0 Legacy Recently New gas HSFO LNG GSAs executed under HOA GSAs Select comments ⚫ Recent established domestic wellhead gas price range of $7—
Slide 27: 2019/2020 Australian tax outlook
2019/2020 Australian tax outlook Key highlights Australian corporate tax overview Australian petroleum resource rent tax (“PRRT”) overview ⚫ Corporate tax rate of 30% of ⚫ Tax at 40% of “PRRT profits”, based on a Jul to Jun tax year, paid quarterly in arrears taxable profits, on a calendar — Based o