Jadestone Energy Plc · LSE:JSE
Jadestone Energy — Investor Presentation (July 2023)
24 slides from Jadestone Energy's investor presentation, Jul 12, 2023
Slide 1: Building a Leading Asia-Pacific Upstream Company
Building a Leading Asia-Pacific Upstream Company Investor Meet Company Presentation 12 July 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: Presenters
Presenters Paul Blakeley Bert-Jaap Dijkstra CEO CFO • Over 40 years’ energy experience, including 20 years at Talisman Energy, 10 • 25 years of experience in finance roles, years in the North Sea and 10 years as most recently as Group Treasurer and EVP Asia-Pacific. Head of Investor Relations with S
Slide 4: Jadestone's increasingly diversified portfolio
Jadestone’s increasingly diversified portfolio Sinphuhorm & Dong Mun, Thailand Location: Khorat Basin Status: Producing - gas and condensate (Sinphuhorm), Gas discovery (Dong Mun) Working interest: 9.52% Akatara gas field, Lemang PSC, Indonesia Location: South Sumatra Basin Status: In development (o
Slide 5: Building a leading Asia-Pacific independent upstream company
Building a leading Asia-Pacific independent upstream company Significant • High IRR infill drilling across the portfolio, starting with East Belumut wells during H2 2023 production growth • >50% production growth(1) expected year-on-year in 2024 once Akatara development is onstream from existing ass
Slide 6: Strategy in action – increasingly diversified with high-returns
Strategy in action – increasingly diversified with high-returns Montara Stag PenMal operated Already delivered c.US$100 million of Three infill wells drilled since Improving uptime and mitigating free cash flow. H6 infill well paid back in acquisition so far, with recent Stag-50H decline rates. Firs
Slide 7: Routine operations now re-established at Montara
Routine operations now re-established at Montara Montara production history since March 2023 restart Key Highlights 12,000 Cyclone Ilsa FPSO gas system Compressor shutdown back online trips ⚫ Montara back to routine operations 10,000 — NOPSEMA General Direction closed in February 2023 8,000 — Produc
Slide 8: PenMal operated assets – increasing production while reducing emissions
PenMal operated assets – increasing production while reducing emissions PenMal operated production Future growth Infill drilling campaign should restore operated production back to Aug-21 ⚫ Four infill wells planned – sidetracks from existing wells levels ⚫ 2 mmstb gross incremental reserves ⚫ Exten
Slide 9: CWLH (North West Shelf) – a potential game-changer
CWLH (North West Shelf) – a potential game-changer Okha FPSO ⚫ Completed acquisition of 16.67% CWLH interest in November 2022 — Net receipt of US$5.75 million at completion — US$82 million decommissioning funding fully paid ⚫ High quality asset — Very large original STOOIP of c.900 mmbbls — Very low
Slide 10: Akatara – high return project on budget and schedule
Akatara – high return project on budget and schedule Akatara gas field development project economics Akatara gas processing facility construction site (May 2023) US$ million IRR = c.40% kboe/d 150 12 10 100 8 6 50 4 2 0 0 (2) (50) (4) (6) EPCI project progressing to plan (100) (8) 2022 2023 2024 202
Slide 11: PNLP – Malaysia asset redevelopment opportunity
PNLP – Malaysia asset redevelopment opportunity North Lukut Puteri 6 wells, unmanned 16 km, 12” pipeline Penara FPSO BUK 7 wells, manned 12 km, 8” pipeline 2 km, 12” pipeline 6 wells, unmanned Low-entry cost redevelopment opportunity with upside potential 12 July 2023 Corporate Presentation
Slide 12: An increasingly diversified production profile with significant growth potential
An increasingly diversified production profile with significant growth potential Historical and forecast production (boe/d) 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2021 2022 2023E 2024E 2025E 2026E Montara Stag CWLH PenMal Sinphuhorm Akatara Near-term M&A opportunity P
Slide 13: Capital structure and debt availability
Capital structure and debt availability Net cash as at 31 May 2023 Cash US$41.2 million Interim Facility US$50.0 million Net debt US$8.8 million RBL facility amount US$200 million Available borrowing base amount on closing in May 2023 US$200 million Currently planned drawdown (next 6 months) US$135
Slide 14: Current borrowing base shows temporary dip during Q2-Q3 2024
Current borrowing base shows temporary dip during Q2-Q3 2024(1,2) Borrowing base amount (US$ million) Notes 250 ⚫ Current borrowing base profile based on the approved banking model ⚫ Borrowing base amount is updated at 200 150 each redetermination (September and March) 100 ⚫ Hedging covers period Q4
Slide 15: Forecast production growth driving operating cash flow inflection in 2024…
Forecast production growth driving operating cash flow inflection in 2024… Operating cash flow evolution at different oil price scenarios (US$ million) - prior to impact of June 2023 financing transactions 225 150 75 0 (75) 2022 2023 2024 2025 US$65/bbl US$75/bbl US$85/bbl Operating cash flow = reve
Slide 16: …leading to a strengthening balance sheet and net cash end 2024 or 2025
…leading to a strengthening balance sheet and net cash end 2024 or 2025 Net cash/(debt) evolution, end of period – prior to impact of June 2023 financing transactions US$325 million 200 expenditure / Montara shut-in 150 COVID-19 impact on activity and oil price 100 50 US$ million 0 Growth Investment
Slide 17: 2023 guidance
2023 guidance 2023 guidance Comments Progress Net Zero ESG ⚫ Expect to announce asset-level decarbonisation plans by end-2023 commitment ⚫ Q1 2023 averaged just over 10,000 boe/d, largely without Montara Group production (April- ⚫ Group production averaged c.12,500 boe/d year-to-date in 2023 and 13,
Slide 18: The Jadestone investment case
The Jadestone investment case Akatara On schedule and budget for first gas in H1 2024 Production growth >50% production growth forecast in 2024 Cash flow Strong recovery in 2024 driven by Akatara and a full year of Montara Deleveraging Return to a net cash position by 2025, if not sooner Diversifica
Slide 19: Appendix
Appendix Jadestone @ Energy
Slide 20: Jadestone's growth strategy and operating model
Jadestone’s growth strategy and operating model Acquire producing mid-life assets or discovered gas resources in APAC Add additional reserves Realise additional value through and production volumes through superior operating capabilities, additional low risk in-field and cost control and incremental
Slide 21: A responsible operator – 2022 ESG highlights
A responsible operator – 2022 ESG highlights Net Zero by 2040 Local economies GHG review >95% firm pledge taxes and royalty payments doubled asset-level review planned safety critical integrity maintenance completed Scope 3 GHGs Board diversity Zero 94% calculated for material categories female repr
Slide 22: Upcoming milestones and key catalysts
Upcoming milestones and key catalysts Asset Activity 2023 2024 Montara Phased well restart and normalised cargo tank operations Production operations Montara Additional gas reinjection compression (online mid-2025) 2025 → Sinphuhorm Infill drilling, booster compression online Stag Infill drilling We
Slide 23: Shareholding analysis
Shareholding analysis 30 April 2023 30 June 2023 Tyrus Capital 26.45% Tyrus Capital 26.44% Fidelity International 9.77% Fidelity International(1) 11.53% Baillie Gifford 8.78% Baillie Gifford 8.70% Livermore Partners 7.07% Livermore Partners 5.92% Odey Asset Management 6.57% Canaccord Genuity 3.06% S
Slide 24: Q&A
Q&A Jadestone @ Energy