Jadestone Energy PLC · LSE:JSE
Jadestone Energy — Investor Presentation (August 2018)
26 slides from Jadestone Energy's investor presentation, August 2018
Slide 1: Investor Presentation August 2018
Investor Presentation August 2018 www.jadestone-energy.com
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 All statement other than statements of historical facts included this Presentation are forward looking statements. In particular, forward-looking statements in this presentation include, but are not limited to statements regarding the ODP revision for Nam Du/U Minh to reflect a standalone
Slide 4: Advisories
Advisories “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, opera
Slide 5: Jadestone Energy: Right Team, Right Place, Right Time
Jadestone Energy Right Team, Right Place, Right Time l Primarily an Ex-Talisman Asia Pacific team led by Paul Blakeley l Delivered 11% CAGR production growth over 10 years in Asia Pacific creating US$6bn NAV business, with deep knowledge of key hydrocarbon basins Deep Experience l Differentiated exp
Slide 6: Jadestone Energy Portfolio Overview
Jadestone Energy Portfolio Overview Building a Balanced, Low Risk, Full Cycle Portfolio Portfolio Development Key Assets Location Gulf of l c.14 mboe/d production from Australian oil assets Thailand l Material reserve and resource base across Asia Pacific 51 SC56 l 45.3 MMboe 2P reserves 46/07 l 117
Slide 7: Asia Pacific Region
Asia Pacific Region Maturing Hydrocarbon Region with Running Room; Ideal Operating Theatre for Jadestone Asia Pacific Reserve Breakdown Development Type Company Maturity 3% 4% 8% 12% 13% 20% 15% 35% 26% 53% 42% 69% Onshore Shallow water Majors & Large IOCs NOCs Late life Mature Deepwater Ultra-deepw
Slide 8: Jadestone Energy Strategic Focus
Jadestone Energy Strategic Focus Leverage Technical & Commercial Capabilities to Maximise Value Creation for Shareholders Key Strategic Principles Core Jadestone Capabilities Differentiated approach to subsurface interpretation and reservoir management Acquire assets with production and/or discovere
Slide 9: Jadestone Value Proposition
Jadestone Value Proposition
Slide 10: Montara Asset Acquisition
Montara Asset Acquisition Deep Value Acquisition with Significant Upside Transaction Overview l Asset acquisition of 100% operated interest covering three oil producing fields Puffin l Cash consideration of US$195MM(1), effective transaction date 1 Jan 2018 Plantagenet l 2P Reserves asset value: $48
Slide 11: Montara Overview
Montara Overview Material Production and Cashflow for Growth and Dividends Jadestone W.I. 100% Montara Production(2) 16 Operator Jadestone 2P Reserves 28.2 MMbbl Exploration Production (mbbl/d) 12 potential Current Production(1) 10.3 mbbl/d 8 Overview l Transformational acquisition, with immediate 4
Slide 12: Montara Value Opportunity
Montara Value Opportunity Attractive Acquisition Price with Potential to Generate Significant Additional Value Key Transaction Drivers Illustrative Montara Value Potential ($MM) Increased Production ● Gas lift installation and optimisation Improve Facilities Uptime ● Improve uptime from c.72%(1) to
Slide 13: Stag Overview
Stag Overview Simple, Steady, Long Life Underpinning Production Stag Production Facilities Jadestone W.I. 100% Operator Jadestone 2P Reserves 17.1 MMbbl Current Production 3.6 mbbl/d Overview l Mid-life asset acquired November 2016 for US$10MM l 2P NPV10 US$84MM l Long life production profile c.2034
Slide 14: Stag Achievements
Stag Achievements Optimising Operations to Grow Reserves, Reduce Costs and Add Value Jadestone Value Drivers Operating Cost Progression US$/bbl Production & Operations Optimisation Prior Operator Jadestone Operator l 3.6 mbbl/d production following current workover, up from an average of 2.6 mbbl/d
Slide 15: Jadestone's Southwest Vietnam Gas Assets
Jadestone’s Southwest Vietnam Gas Assets Developing Significant Gas Resource into Energy-Short Domestic Market Jadestone W.I. 100%(1) Operator Jadestone 496.8 Bcf 93.8 2C Resources(2) MMboe 11 MMbbl Overview l Significant shallow water gas and condensate resource in three fields, close to existing i
Slide 16: Jadestone Portfolio Work Programme
Jadestone Portfolio Work Programme Fully Funded Programme of Material Near-term Catalysts 2018 2019 2020+ Asset Country Activity Q3 Q4 Q1 Q2 Q3 Q4 Implement Jadestone Operations Montara Operating Philosophy Montara Production Montara Optimisation Infill Drilling Campaign Stag (5 wells) Production 2P
Slide 17: Significant Production Growth
Significant Production Growth… Montara Complements Existing Portfolio to Deliver Sustained Growth l Balanced portfolio of oil and gas production reaching c.30 mboe/d by 2023 l Business resilience from a mix of life-of-field fixed price gas contracts and oil production in a concession environment l H
Slide 18: Compelling Investment Opportunity
Compelling Investment Opportunity Currently Trading at a Deep Discount to Core NAV CPR Reserves Value (US$MM) Total Tangible Asset Value (US$MM) Stag 2P Reserve Value (3) Montara 2P Reserve Value (3) SC56 0.33x Tho Chu Ogan Komering $915 2P Reserves 0.35x $88 2C Resource Management Estimates $76 $24
Slide 19: Relative Valuation
Relative Valuation Attractive Value Proposition Relative to Key Peers P / Core NAV (x) EV / 2P Reserves (US$ / boe) Pro-forma Jadestone Energy Pro-forma Jadestone Energy $14 $12 $10 $10 $10 $10 9.20x $9 $7 $6 ERCE 2P NPV10 adjusted for 1.43x Montara acquisition net (2) G Peerd C PeerX D Peer H Peeri
Slide 20: 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 generating returns for shareholders Proven regional l End-to-end capabilities through the upstream
Slide 21: Appendix
JADEST@NE ENERGY Appendix
Slide 22: Southeast Asia Gas Fundamentals
Southeast Asia Gas Fundamentals Growing Supply Shortfall Driving Attractive Pricing Dynamics for Producers Southeast Asia Investment Highlights Significant Growth of Natural Gas Demand, Bcf/d bcf/d l Region characterised by high-growth, 15 Confirmed domestic supply Demand energy-hungry economies 10
Slide 23: Stag Development and Exploration Potential
Stag Development and Exploration Potential Significant Further Investment Opportunities Exist Active Drilling Programme Stag Development Schematic l 5 well campaign (as per the 2P reserves plan) across Stag: Infill producer l 49H (to be drilled Nov ’18) and 52H infill wells Infill injector targeting
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 Field3 Project Development Outline l Simple design with a conductor supported well head platform for each field, tied back to an FPSO at Nam Du l 2 wells per field provide back-up capacity to meet
Slide 25: Nam Du and U Minh Development Schedule
Nam Du and U Minh Development Schedule Accelerating Jadestone’s Standalone Development Solution Select Highlights l Outline Development Plan (ODP) approved May 2018 l FEED, field development plan studies and gas sales agreement preparation are in progress l Anticipate FDP approval c.Q3 2019 l First
Slide 26: Ogan Komering PSC
Ogan Komering PSC Opportunity to Deliver Significant Value Under New PSC with Pertamina Onshore Existing Oil & Gas Production Ogan Komering Quarterly Production and Operating Costs (Net) boe/d Oil Gas Opex US$MM Overview 1,600 3.0 l Prior Jadestone asset, currently progressing direct discussion 2.5
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