Jadestone Energy Plc · LSE:JSE
Jadestone Energy — Investor Presentation (March 2019)
29 slides from Jadestone Energy's investor presentation, Mar 6, 2019
Slide 1: 2019 Guidance
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level 2019 Guidance• Fifth level March 6, 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: Jadestone Energy—updated portfolio overview
Jadestone Energy—updated portfolio overview Building a balanced, low risk, full cycle portfolio Portfolio development Key assets location ⚫ 13,500—15,500 bbls/d production guidance from Australian oil assets for 2019 Gulf of Thailand — Feb 2019 actual 15,369 bbls/d ⚫ Material reserve and resource ba
Slide 5: Compelling investment opportunity
Compelling investment opportunity Jadestone currently trades at a deep discount to core NAV Total tangible asset value, US$mm Total tangible asset value, CAD$/share US$/bbl Stag 2P Montara 2P CAD$/share Stag 2P Montara 2P 1,250 2C resource 1 Management estimates 2 3.50 2C resource 1 Management estim
Slide 6: 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, bbls/d Full year major spend1, US$mm Full year base opex2, US$/bbl 40 20 0 Stag infill & other Montara umbilical Montara Stag Ogan Jadestone Montara LWI Montara sei
Slide 7: 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 8: Montara restarted Jan 11, 2019
Montara restarted Jan 11, 2019 Maintenance & inspection backlog fixed, greatly enhancing asset integrity Rationale for shut-down Numerous major items resolved ⚫ Unacceptable backlog of ⚫ 7 enforcement notices addressed1 maintenance and inspection routines ⚫ 9,000 hours of maintenance/inspection comp
Slide 9: 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 10: Montara activity in 2019 (cont’d)
Montara activity in 2019 (cont’d) New well H6 drains updip 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 Monta
Slide 11: Montara activity in 2019 (cont’d)
Montara activity in 2019 (cont’d) 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 com
Slide 12: 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 interventions planned for Q2 philosophy, including centralised ⚫ Production optimisation from support g
Slide 13: Montara capped swap summary
Montara capped swap summary Overview Capped swap summary Vol, bbls Dated Brent US$/bbl ⚫ Swaps cover 600,000 90.00 approximately 50% of planned 2PD production for first 24 months of Jadestone ownership 500,000 ⚫ Average swap prices — US$78.26/bbl for Q4 400,000 75.00 2018 — US$71.72/bbl for 2019 — U
Slide 14: Stag activity in 2019
Stag activity in 2019 Infill to be spudded ~Mar 12, targeting 1.2mm bbls of unswept oil Maintain uptime and first infill well since acquisition Stag development overview ⚫ Well planning completed for Stag infill well 49H — Targeting 1.2mm bbls of 2P reserves and ~1,200 bbls/d initial production1 ⚫ R
Slide 15: Stag infill well 49H
Stag infill well 49H First development well drilled in six years, with other targets identified Infill well 49H illustrated on Stag NFA remaining oil map, Jan 2031 Comments ⚫ First Stag infill since 2013 ⚫ Targeting unswept oil in a higher pressure area just ST- ST- ST- west of the platform 32H 45H
Slide 16: Further targeted reductions in per unit opex
Further targeted reductions in per unit opex Optimising operations to further reduce costs Per unit opex activity in 2019 Operating cost reductions, US$/bbl US$/bbl Prior operator Jadestone operator ⚫ Restore well 100 uptime post 49H Base Workovers + R&M drilling program Production 75 optimisation ⚫
Slide 17: 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 18: Nam Du/U Minh—progress on development
Nam Du/U Minh—progress on development Pre-sanction workstreams are on schedule to support FID in 2019 Select define phase/pre-sanction workstreams Select updates ⚫ Facilities & pipeline FEED Staffing: core project/commercial team fully staffed & operational; 5-year staffing plan being developed ⚫
Slide 19: 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 20: 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 21: Other considerations
Other considerations Overview ⚫ Open to consider a farm-down of a non-operated stake on or around project sanction Nam Du / U Minh ⚫ Will seek to part debt fund a share of the capital costs ⚫ Expect to re-engage with Pertamina on re-entry into the PSC—to be pursued following Ogan Komering April gene
Slide 22: 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 22
Slide 23: Asia Pacific region
Asia Pacific region Maturing hydrocarbon region with significant running room; ideal for Jadestone Asia Pacific reserve breakdown Development type Company Maturity 3% 4% 8% 13% 20% 12% 15% 35% 26% 53% 42% 69% Onshore Shallow water Majors & large IOCs NOCs Late life Mature Deepwater Ultra-deepwater I
Slide 24: Southeast Asia gas fundamentals
Southeast Asia gas fundamentals Growing supply shortfall driving attractive pricing dynamics for producers Southeast Asia gas investment highlights Growth in domestic natural gas shortfall, bcf/d ⚫ Region characterised by high-growth, energy-hungry bcf/d Demand Domestic supply economies 15 ⚫ Natural
Slide 25: Jadestone Energy—strategic focus
Jadestone Energy—strategic focus Leverage technical & commercial capabilities to maximise value for shareholders Key strategic principles Jadestone core capabilities Differentiated approach to subsurface analysis and reservoir management Acquire assets with production and/or discovered 1 resources i
Slide 26: Montara overview
Montara overview Material production and cashflow Highlights Montara production, mbbl/d Jadestone W.I. 100% 16 Exploration Operator Jadestone potential 12 Production, mbbl/d 2P reserves1 28.2 mmbbl 2018 average production2 7,615 bbl/d 8 Overview 4 Montara Swift/Swallow ⚫ Transformational acquisition
Slide 27: Recap of the Montara value opportunity
Recap of the Montara value opportunity Attractive acquisition price with potential to generate significant additional value Levers to unlock value Illustrative Montara value potential, US$mm Increased production ● Gas lift installation and optimisation Improve facilities uptime ● Improve uptime from
Slide 28: Stag overview
Stag overview Simple, steady, long life underpinning production Highlights Stag production facilities Jadestone W.I. 100% Operator Jadestone 2P reserves1 17.1 mmbbl 2018 average production 2,846 bbl/d Overview ⚫ Mid-life asset acquired November 2016 for US$10mm ⚫ Long life production profile c.2034
Slide 29: Jadestone’s Southwest Vietnam gas assets
Jadestone’s Southwest Vietnam gas assets Developing significant gas resource into 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 gas a
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