Jadestone Energy Plc · LSE:JSE
Jadestone Energy — Merger or Acquisition (November 2019)
22 slides from Jadestone Energy's merger presentation, Nov 18, 2019
Slide 1: Acquisition of Maari Assets
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level Acquisition of • Fourth level • Fifth level Maari Assets November 18, 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: 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$50mm, based on an effective date of Jan 1, 2019 — Oil price contingent p
Slide 5: Near-term production enhancement and significant resource available
Maari value opportunity Near-term production enhancement and significant resource available Key value drivers Illustrative Maari value potential2 , US$mm 350 Attractive acquisition cost l 2P NPV10 US$180mm1 vs headline price US$50mm 300 Reserves l 2P reserves 13.9 mmbbls1 250 Operations efficiency u
Slide 6: New Zealand
New Zealand A natural strategic fit and a platform for further growth A platform for growth A complement to existing business Maturing hydrocarbon basin l Jadestone will establish a lean, fit for purpose presence in New Zealand, with local capability and l Mid-life assets a perfect strategic fit exp
Slide 7: Jadestone's Group ESG priorities
Jadestone’s Group ESG 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 our operational
Slide 8: Maari project overview
Maari project overview Mid-life facilities, with significant spare capacity, in shallow water Key facts Jadestone W.I. 69% l First production in 2009 — Peak production of 16,400 bbls/d in 2010 Operator1 Jadestone l Large STOIIP of close to 300 mmbbls — 38.3 mmbbls produced to end 2018 2P reserves (n
Slide 9: Maari and Manaia oil fields
Maari and Manaia oil fields Subsurface summary l Offshore Taranaki basin, 80km from shore l 4-way inversion anticline structures l Mid Miocene Moki turbidite reservoirs (at ~1,300mSS) and Eocene Mangahewa fluvial reservoirs (at ~2,000mSS) l 4 exploration/appraisal wells in Maari and 2 exploration/ap
Slide 10: Maari and Manaia oil fields: discovery and development history
Maari and Manaia oil fields Discovery and development history Discovery and early development Second phase development in 2014-2015 l Manaia field discovered in 1970 by the Maui-4 well l Additional producers l Maari field discovered in 1983 by the Maari-1 well — 3 further horizontal producers into t
Slide 11: Maari Moki reservoir
Maari Moki reservoir Further development upside in Maari Moki Overview l Maari Moki is the main reservoir l More than 150 mmbbls oil originally in place l Original development was not optimal for the reservoir Maari Moki— — Initial deviated water injectors were later given up reservoir facts — Horiz
Slide 12: Maari Sequence 0 reservoir
Maari Sequence 0 reservoir Further development upside in Maari Sequence 0 Overview l Poorer quality than other Maari reservoirs l Original oil in place >70 mmbbls, split between an upper and a lower reservoir interval Maari Sequence 0— l Accessed by a single horizontal producer, on production since
Slide 13: Manaia reservoirs
Manaia reservoirs Further infill potential in Manaia Mangahewa, Manaia Moki upside Overview l Original oil in place of 46 mmbbls Manaia Mangahewa— l On production since Oct 2010 reservoir facts l Sole producing well is not draining the reservoir effectively due to vertical baffles l 2P case includes
Slide 14: Production profile—first five years
Production profile—first five years There are significant near-term production adds beyond the 2P reserves case Production profile including Maari upside1,2, 69% net to Jadestone, bbls/d 8,000 No further activity 2P activities Upside 2P reserves + 4,000 Maari and Manaia upside technical cutoff: 2038
Slide 15: Select opex reduction opportunities
Select opex reduction opportunities Key initiatives to add value by reducing opex Jadestone’s operating philosophy Production Well workover chemicals strategy 2P opex savings >20% Right size vs 2018 Campaign organisation maintenance Increased use of remote operation for well head platform Efficiency
Slide 16: Substantial free cashflow generation
Substantial free cashflow generation Illustrated from the economic effective date of Jan 1, 2019 2P cashflows, 69% net to Jadestone1, US$mm US$mm bbls/d 150 6,000 4,000 50 2,000 (50) 0 Acquisition cost will actually be paid on closing, likely in H2 2020, with much of it offset by after tax free cash
Slide 17: Maari is value accretive on all key metrics
Maari is value accretive on all key metrics Unlevered acquisition, high quality assets, incremental cash flow Production (rebased to 100) 2P reserves1,2 (bbls per share) 2P NAV1,2 (US$mm) Jadestone Jadestone + Maari Jadestone Jadestone + Maari 1,200 150 c. 30% 0.2 c. 20% c. 33% 100 0.1 50 c. 33% 600
Slide 18: 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 1,500 250 Maari 2P 2C Resource 1 2 Manaia Moki Management estimates SC 56 Montara Gas 1,250 Tho Chu Ogan Komering 200 1,000 150 750 100 500 US$358 ma
Slide 19: Maari acquisition highlights
Maari acquisition highlights Attractive acquisition, and a natural strategic fit l 0.66x 1P NAV l US$3.61/bbl 2P reserves Compelling metrics1 l 0.28x 2P NAV l <12 month payback l Tangible value of 4-5x acquisition cost Reinvestment opportunities l Value add by deploying Jadestone capabilities to exi
Slide 20: 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 20
Slide 21: 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 22: New Zealand has the best fiscal terms in APAC
New Zealand has the best fiscal terms in APAC Attractive fiscal terms, both in APAC and versus North Sea New Zealand fiscal terms Marginal tax rates (%) l Royalty + tax regime l Royalty — 5% net sale revenue; or 77% 78% — 20% accounting profit, whichever is higher — Deductible against corporate tax
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