Jadestone Energy Plc · LSE:JSE
Jadestone Energy — Q3 2019 Earnings Presentation
25 slides from Jadestone Energy's earnings presentation, Nov 28, 2019
Slide 1: Q3 2019 Quarterly Results Review
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level Q3 2019 Quarterly • Fourth level • Fifth level Results Review November 28, 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 any question-and-answer session that may follow, and any additional documents handed out at the presentation (collectively, t
Slide 3: Advisories
Advisories Certain of the information in this Presentation is “financial outlook” as approved by the Company’s Board of Directors as at 4 March 2019 within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding the Company’s r
Slide 4: Agenda
Agenda Webcast presentation, quarter ended September 30, 2019 1 Paul Blakeley l Quarter highlights, operational update, asset performance 2 Dan Young l Financial review 3 Paul Blakeley l Outlook, conclusions 4 Team l Q&A Session 4
Slide 5: Jadestone Energy, corporate overview
Jadestone Energy, corporate overview Overview Q3 2019 highlights Financial Statement extract l Montara safety case accepted, transfer of operatorship As at, US$mm Sep 19 Jun 19 completed smoothly and safely Cash1 75.0 76.4 l Initial Montara high-return investments on time and on Total assets 790.9 8
Slide 6: The Montara value opportunity
The Montara value opportunity On track to deliver significant additional value Levers to unlock value (US$mm) Attractive acquisition cost Strong acquisition metrics: <$7 per bbl 2P reserves / <$19,000 per flowing bbl 2P reser ve adds Production optimisation, reservoir management, infill drilling Upt
Slide 7: Montara—select opex reduction initiatives
Montara—select opex reduction initiatives Approximate annual net savings, US$mm $5.0mm Campaign maintenance $5.1mm 100% $2.3mm Head office Perth office support costs costs 100% ~$25mm 100% Total opex savings 23% reduction from $9.0mm historic opex $1.5mm Organisation right Stag/Montara shared sizing
Slide 8: Stag achievements and outlook
Stag achievements and outlook Optimising operations to grow reserves, reduce costs and add value Overview Operating cost reductions1, US$/bbl l Production—averaged 3,801 bbls/d in Prior operator Jadestone as operator Q3 2019, with uptime performance of 92% and increased production due to: 46 — 37H,
Slide 9: Nam Du/U Minh—progress on development
Nam Du/U Minh—progress on development Pre-sanction workstreams are on schedule to support FID by year end Select define phase/pre-sanction workstreams GSPA heads of agreement signed April 25, 2019 l Facilities & pipeline FEED P Resources—covers all discovered resources from the Nam l WHP specialty e
Slide 10: Maari asset acquisition
Maari asset acquisition Strong acquisition metrics, quick payback, significant reservoir upside Transaction overview l Asset acquisition of a 69% operated interest in two producing oil fields l Headline cash consideration of US$50mm, based on an effective date of Jan 1, 2019 — Oil price contingent p
Slide 11: Financial review—key headlines
Financial review—key headlines Continued cost performance, continued deleveraging Overview Average production and hydrocarbon prices l One Montara lifting in Q3, versus two liftings in Q2 Q3 Q2 Q1 9M — Volume down 44% (c.f. inventory build-up) 2019 2019 2019 2019 l Revenue down 46%, q-o-q l Producti
Slide 12: Financial results—quarterly cash bridge
Financial results—quarterly cash bridge Montara and Stag demonstrating strong positive cash generation US$mm Cash balance 120 Qtly ordinary cashflow Qtly non-recurring cashflow 50.1 21.3 9.7 2.7 15.3 10.2 0.8 16.1 80 0.5 4.2 4.3 51.9 14.0 50.1 40 Strong cash generation from Q3 cash used in investing
Slide 13: Financial results—Q3 2019 EBITDAX
Financial results—Q3 2019 EBITDAX Q3 2019 adjusted EBITDAX reconciliation Income statement extract, US$mm EBIT, US$mm 3 months ended Sep 30, US$mm Reported Adjusted US$mm 2019 2018 20 16.7 Revenue 62.5 32.7 Production cost (32.0) (16.9) 10 9.3 7.0 Staff costs (4.5) (2.8) 4.1 Other expenses (2.8) (6.
Slide 14: 2019 guidance
2019 guidance Production, major spend, and opex Full year average production, boe/d Full year major spend1, US$mm Full year base opex2, US$/boe Not before 2020 40 20 H1 2020 Stag infill & other Mo ntara umbilical 0 Mo ntara LWI Mo ntara seismic Mo ntara Stag Jadestone Mo ntara infill Mo ntara other
Slide 15: 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 Maari Acquisition
Slide 16: Compelling investment opportunity
Compelling investment opportunity Jadestone trades at a deep discount to its NAV Total tangible asset value, US$mm US$mm GBp /share Stag 2P Montara 2P 1,500 1 250 Maari 2P 2C resource 2 Manaia Moki Management estimates SC 56 Montara gas 1,250 Tho Chu Ogan Komering 200 1,000 150 750 100 500 US$444 ma
Slide 17: Jadestone Energy investment highlights
Jadestone Energy investment highlights A strategy that works, a high value portfolio, and a plan for value accretive growth l Proven in-region management team with a track record of value creation and shareholder return generation Proven regional management l End-to-end capabilities through the upst
Slide 18: Appendix
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level Appendix • Fourth level • Fifth level www.jadestone-energy.com 18
Slide 19: Jadestone Energy—updated portfolio overview
Jadestone Energy—updated portfolio overview Building a balanced, low risk, full cycle portfolio Key assets location Key assets and reserves Gulf of 2P1 2C2 Thailand Asset Country W.I. (%) Production (net WI) / status (mm bbls) (mm boe) SC56 Maari 69% 13.9 -- 4,000—4,500 51 46/07 Montara 100% 26.6 --
Slide 20: Environmental, social, and governance priorities
Environmental, social, and governance priorities Our framework for sustainability Reporting Managing Jadestone will publish its first ever Our ESG-specific KPIs will be set, sustainability report along with its measured, and managed in exactly the financial and operating results for the same way as
Slide 21: Montara riserless light well intervention
Montara riserless light well intervention A highly efficient intervention campaign Illustration Advantages P Faster set up time on location P Short travel time between wells P No riser run to surface P Deployment of heavy items off well centre P Most cost effective setup for electric-line 2 4 71 Gas
Slide 22: 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% Operator Jadestone 496.8 bcf 93.8 2C resources1 mmboe 11 mmbbl l Significant shallow water gas and c
Slide 23: Nam Du/U Minh development schedule
Nam Du/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 2017
Slide 24: Nam Du and U Minh development concept
Nam Du and U Minh development concept Commercialised via the existing route utilised by Talisman’s PM3 field Field development phasing1 Illustration of Nam Du/U Minh development concept Nam Du & U Minh Production Profile 100 200 Nam Du Southern Channel U Minh Nam Du 90 DCQ 180 EUR 80 160 70 140 Gros
Slide 25: Montara capped swap summary
Montara capped swap summary Overview Capped swap summary Vol, bbls Dated Brent US$/bbl l Swaps cover 600,000 90 approximately 50% of planned 2PD production for first 24 months of Jadestone ownership 500,000 l Average swap prices — US$71.72/bbl for 2019 400,000 75 — US$68.45/bbl for Q1- Q3 2020 l Ups