Jadestone Energy Plc · LSE:JSE
Jadestone Energy — H1 2023 Earnings Presentation
18 slides from Jadestone Energy's earnings presentation, Sep 19, 2023
Slide 1: Half-year 2023 results
Half-year 2023 results 19 September 2023
Slide 2: Disclaimer and advisories
Disclaimer and advisories You must read the following before continuing. The following applies to this document and any part of it, the oral presentation of The content of the Presentation has not been approved by an authorised person within the meaning of the Financial Services and the information
Slide 3: Challenges at Montara offset by good progress at Akatara
Challenges at Montara offset by good progress at Akatara Montara Inspection procedures enhanced, now returned to routine operations Akatara Significant progress - from 18% complete in January to 65% by end September Infill drilling East Belumut and Sinphuhorm wells deliver ahead of expectations M&A
Slide 4: H1 2023 performance reflects lower oil prices and Montara shut in
H1 2023 performance reflects lower oil prices and Montara shut in Production Revenue Op cashflow(1) pre-tax & w/c Net cash boe/d US$ million US$ million US$ million 16,000 15,008 250 120 117 125 123 118 226 12,116 12,339 200 100 12,000 90 9,934 82 150 138 75 8,000 116 57 54 60 100 87 50 4,000 30 50
Slide 5: Focus on keeping field-level production costs under control
Focus on keeping field-level production costs under control H1 2023 operating cost analysis US$ million 140 5 120 25 (10) 100 (7) 91 (3) 82 80 (19) 9 CWLH H1 23 opex 3 Other 60 Main components: 40 • Montara tanker hire (US$6.1mm) • Montara diesel consumption (US$4.2mm) 70 • PenMal PNLP FPSO rectific
Slide 6: H1 2023 cash bridge
H1 2023 cash bridge Reconciliation of cash from 1 January 2023 to 30 June 2023(1) US$ million Operating cash flows Financing cash flows Investing cash flows (2) 1 Totals may not add due to rounding 2 Manpower/G&A includes corporate G&A plus onshore operations related personnel 6 | 19 September 2023
Slide 7: H1 2023 cash sources and uses
H1 2023 cash sources and uses H1 2023 sources and uses of cash Cash from equity Opening cash balance RBL loan position Sources of cash 51 123 111 Uses of cash 119 29 15 30 92 Closing cash balance Post-tax op CF Working capital Growth – capex, Sinphuhorm, CWLH Finance, leasing & other 0 50 100 150 20
Slide 8: Liquidity and RBL update
Liquidity and RBL update Liquidity at 30 June 2023 US$ million ⚫ c.US$230 million liquidity at end of June 2023 ⚫ Bi-annual RBL redetermination underway — Finalised 30 September, effective 1 October 2023 — Technical Bank recommendation has available debt of c.US$190mm from October 2023 to March 2024
Slide 9: Expected balance sheet strengthening and projected net cash in 2025
Expected balance sheet strengthening and projected net cash in 2025 Net cash/(debt) evolution, end of period – illustrative only US$ million 250 Significant growth investment / US$85/bbl (June 2023 projection) Montara shut-in impact US$75/bbl (June 2023 projection) 200 US$65/bbl (June 2023 projectio
Slide 10: Montara – improving performance after a difficult 2023
Montara – improving performance after a difficult 2023 Montara Venture tank inspection and repair gap analysis Type and accuracy ✘ New standard implemented ⚫ Enhanced tank inspection process has been implemented Inspections ✓ — Gap analysis undertaken to assess any weakness in processes and Scope an
Slide 11: Akatara – high return project remains on budget and schedule
Akatara – high return project remains on budget and schedule Akatara gas production facility (AGPF) – September 2023 AGPF control room and substation – September 2023 EPCI activity progressing to plan and on budget Positive impact on local economy ⚫ On track to be 65% complete by end September 2023
Slide 12: Akatara – successful well service test
Akatara – successful well service test Akatara-1 well service June - July 2023 ⚫ Akatara-1 well service test completed in early July 2023 — Utilising existing wells at Akatara reduces project development cost and complexity — Akatara-1 reactivated with flow rates of up to 8.5 mmscfd gas achieved wit
Slide 13: Successful start to East Belumut drilling campaign
Successful start to East Belumut drilling campaign Naga-2 rig on location at the East Belumut field ⚫ Four well East Belumut (EBA) infill drilling campaign commenced in late August 2023 ⚫ First well (EBA-01ST3) targeted the east flank of the EBA field — Encountered c.10 metres of oil column at the h
Slide 14: 2023 guidance
2023 guidance Guidance Comments ⚫ April 2023 to date production = c.14,000 boe/d, (equivalent to year-to-date production of c.12,500 boe/d) Group production (April- 13,500 – 15,000 boe/d ⚫ Current production(1) c. 16,700 boe/d December) (from 13,500 – 17,000 boe/d) ⚫ Narrowed April to December 2023
Slide 15: Restoring reliable operations and refocusing on portfolio growth
Restoring reliable operations and refocusing on portfolio growth Montara Resolved tank inspection gap and now returned to high operating uptime Akatara Continue strong progress towards first gas in the first half of 2024 Cash flow Akatara drives a step change in cash flow generation starting in 2024
Slide 16: Q&A
Q&A H1 2023 results review, 19 September 2023
Slide 17: Appendix
Appendix H1 2023 results review, 19 September 2023
Slide 18: Oil pricing and hedging
Oil pricing and hedging Oil realisations (US$/bbl) Hedging outlook (volume in column, label = average price in quarter) US$/bbl bbs 120 1,000,000 72.87 70.81 Weighted average 7.0 hedge price = US$70.57/bbl 100 800,000 8.9 80 1.6 3.4 69.66 5.0 70.62 71.84 69.91 68.29 600,000 69.01 60 4.2 102.5 40 77.