Jadestone Energy Plc · LSE:JSE
Jadestone Energy — Investor Presentation (December 2017)
29 slides from Jadestone Energy's investor presentation, December 2017
Slide 1: Investor Presentation December 2017
Investor Presentation December 2017
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 agr
Slide 3: Advisories
Advisories Forward Looking Statements Information Certain statements in this presentation are forward looking statements and information (collectively “forward looking statements”), within the meaning of the applicable Canadian securities legislation, as well as other applicable international securi
Slide 4: Advisories
Advisories l "Operating netback" is a common non-GAAP metric used in the oil and gas industry. This measure assists management and investors to evaluate the specific operating performance by product at the oil and gas lease level. Operating netback is calculated as realised price less royalties, ope
Slide 5: Overview of Jadestone Energy
Overview of Jadestone Energy
Slide 6: Jadestone Energy, corporate overview
Jadestone Energy, corporate overview Snapshot Overview Financial Statement extract As at, US$mm Sep-17 Sep-16 l Independent upstream oil & gas company Cash 19.6 1.1 l Asia Pacific focus, onshore and shallow-water offshore l 4,300-4,800 boe/d production in Australia and Indonesia, large Total assets
Slide 7: Strategy is working; several major and near-term catalysts
Corporate update Strategy is working; several major and near-term catalysts The strategy is Major near- working term catalysts Current snapshot—quarter ending Select achievements Near term outlook September 2017 l New management team & new strategy l Average Sep quarter production embedded l Ogan Ko
Slide 8: Corporate development—AIM listing & raise
Corporate development—AIM listing & raise Jadestone is exploring the option to list and raise funds on the AIM Market Overview Rationale l Pursuing several organic and inorganic growth options l Existing core shareholders are — Inorganic growth options must meet strict threshold criteria, committed
Slide 9: Jadestone Energy, portfolio overview and NAV
Jadestone Energy, portfolio overview and NAV Snapshot Select blocks, ordered by expected commercialisation1 2P 2C Target production Block W.I. (%) (mm boe) (mm boe) Operator (net WI) / status 17.8 Stag 100% N/A Jadestone 3,000-3,500bbl/d (100%) 1 Ogan Reserves estimated JOB with SC57 50% ~1,300 boe/
Slide 10: Southeast Asia is a highly compelling energy market
Southeast Asia is a highly compelling energy market High GDP growth rates, growing gas deficits, rising gas prices, and leading global E&P margins High growth outlook, GDP CAGR 2017—2019 % Significant growth of natural gas demand, bcf/d GDP growth US$/boe 2017—2019E, % Confirmed domestic supply Gap
Slide 11: Jadestone Energy investment case
Jadestone Energy investment case A strategy that works, a high value portfolio, and a plan for value accretive growth l Management team with proven abilities to add value and world class second phase specialisation A strategy that l Objectives aligned with shareholders works l One year into the stra
Slide 12: New leadership
New leadership Paul Blakeley brings a wealth of knowledge and experience to Jadestone with a very impressive track record running Talisman’s APAC business Talisman Asia Pacific production l Jadestone Energy is led by Paul Blakeley, who ran Talisman’s Asia Pacific business from 2005 and spent the pri
Slide 13: Management's track record of value creation
Management’s track record of value creation Asia-Pacific focused strategy with a proven business model to create exceptional value History of value creation 1,200 2.3x Value creation levers Step-out exploration 4.8x 2.7x Commercial 1,000 Improved recovery Appraisal 800 Project execution NPV10 (US$mm
Slide 14: Core management team
Core management team Paul Blakeley’s leadership is augmented by a management team with significant operational and technical experience Experience Core management Previous employers Experience (years) Paul Blakeley 35 Chairman and CEO Michael Horn 25 EVP Corporate and Business Development Dan Young
Slide 15: Reserves & production
Reserves & production Stag’s 2P reserves increased by over 3.5mm bbls from July 2016, including production Select comments 2P Reserves1 and 2C Resources2 net to Jadestone, mmboe mmbbls l Stag’s 2P reserves at acquisition estimated at 14.6mm bbls 100% oil 2P Reserves1, March 2017 (GCA) 20 6 18 l 2P r
Slide 16: Embedded value in the current asset base
Embedded value in the current asset base Downside de-risked with cash-flowing assets and more than C$5 NAV/share upside NAV bridge, US$mm NAV bridge, C$/share8 US$mm Existing JSE asset Subject to PVN pre-emption3 C$/share Existing JSE asset Subject to PVN pre-emption3 1,200 7 1,054 6.07 6 1,000 53 1
Slide 17: Future Asia-Pacific opportunities
Future Asia-Pacific opportunities Focus on basins where we can deploy our skills to unlock trapped value Jadestone Energy core focus area Select comments l Potential M&A opportunities must meet Near sanction project providing Jadestone’s strict threshold acquisition infrastructure hub combined crite
Slide 18: 2017 calendar guidance
2017 calendar guidance Key focus on H2 2017—period post transfer of Stag operatorship on July 10, 2017 Key metrics for remainder of the calendar year Other significant potential H2 2017 events l Further improvements in Stag l 4,300—4,800boe/d for the remainder of calendar 2017 performance Production
Slide 19: Select Asset Highlights
Select Asset Highlights
Slide 20: Stag update
Stag update Jadestone has already implemented several initiatives to boost production and lower costs at Stag, while having completed its first NOPSEMA audit Stag quarterly production and operating costs, 2017 Milestones in a tier 1 regulatory environment bbl/d US$mm Prior Operator l Digital asset l
Slide 21: Ogan Komering outlook
Ogan Komering outlook Maximising returns on investment prior to the new PSC l Adhering to highest HSE standards: 2.845 million manhours without LTI l Stable, reliable production l Process modifications at Mandala increasing sales gas by 8% with further potential to increase sales gas by re- perforat
Slide 22: Ogan Komering outlook
Ogan Komering outlook Value delivery under the new PSC Existing discoveries ready to be developed Value delivery post new PSC l Progress early development of existing gas discoveries — Jantung Baru, North Meraksa, Bandar Agung ~100 bcf (gross) l Exploration upside N Meraksa — P50 prospective resourc
Slide 23: Vietnam Block 05-1b&c PSC
Vietnam Block 05-1b&c PSC Near term development & value accretion in a very familiar neighborhood Highlights Nam Con Son Basin Phu My Heritage Talisman block l US$14.3mm upfront purchase price for 30% participating interest (3900 MW) Other block Nhon Trach l 158bcf gas, 6mm bbls liquids 2C resource
Slide 24: The evolution of Vietnam's domestic gas market
The evolution of Vietnam’s domestic gas market Recent gas MOUs have purportedly been signed at US$9/mm BTU and above Vietnam wellhead gas pricing, US$/mmBTU Southeast Vietnam gas supply & transportation capacity, mmscfd US$/mm BTU (2016 real) mmscf/d 14 1,600 6.1 (LT-LD) 11.2 (RD) 12W (CS-Dua) 5.2 (
Slide 25: Jadestone's Southwest Vietnam gas
Jadestone’s Southwest Vietnam gas Nam Du & U Minh gas will be commercialised via the same route as TLM’s PM-03 Vietnam gas Malay Basin detail of Jadestone’s Southwest Vietnam gas Select comments l Nam Du and U Minh discoveries are ~23km apart in adjacent Jadestone blocks Planned pipeline l Immediate
Slide 26: Efforts to commercialise Nam Du and U Minh continue
Efforts to commercialise Nam Du and U Minh continue Jadestone is now accelerating our preferred standalone development solution Field development plan (FDP) Outline Reserve EPC, development FEED, assessment drilling, plan EPCI bid conditioning report (RAR) installation (ODP) Gas sale agreement (GSA)
Slide 27: Appendix Additional Materials
Appendix Additional Materials
Slide 28: Jadestone Energy strategic focus
Jadestone Energy strategic focus Asia Pacific strategic focus with a proven business model and resilient Balance Sheet Value creation Balanced portfolio Focused approach Prioritise margin Balanced portfolio of Focus on select core areas in improvement and accretive production and APAC, a region with
Slide 29: Attractive value vs peers
Attractive value vs peers Valuation compares favourably on reserves, production and cash flow metrics. The development projects should provide further superior long-term growth Firm Value/2P Reserves, US$/boe Firm Value/EBITDA 2017E 15 10.0x 8.0x 10 6.0x 4.0x 5 2.0x 0 0.0x Peer 2 Peer 3 Peer 1 Peer
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