Slide 1: Investor Presentation August 2017
INVESTOR PRESENTATION AUGUST 2017
Slide 2: Overview of Jadestone Energy
OVERVIEW OF JADESTONE ENERGY
Slide 3: Jadestone Energy, corporate overview
Jadestone Energy, corporate overview Snapshot Overview Financial Statement extract Independent upstream oil & gas company, with a focus on select areas in As at, US$mm Mar-17 Mar-16 Southeast Asia and Australia Cash 14.5 9.1 4,300-4,800 boe/d production in Australia and Indonesia, large Total as
Slide 4: Portfolio overview and net asset value
Jadestone Energy, portfolio overview and net asset value Snapshot Select blocks, ordered by expected commercialisation1 2P 2C Production (net) / Block W.I. (%) (mm boe) (mm boe) Operator status 14.6 Stag 100% N/A Jadestone 3,000-3,500bbl/d (100%) 1 Ogan Reserves estimated JOB with 50% ~1,300 boe/d S
Slide 5: Southeast Asia is a highly compelling energy market
Southeast Asia is a highly compelling energy market High GDP growth rates, growing gas deficits, rising gas prices, and leading global E&P margins High growth outlook, GDP CAGR 2017—2019 % Significant growth of natural gas demand, bcf/d GDP growth US$/boe 2017—2019E, % Confirmed domestic supply Gap
Slide 6: Jadestone Energy strategic focus
Jadestone Energy strategic focus Asia Pacific strategic focus with a proven business model and resilient Balance Sheet Value creation Balanced portfolio Focused approach Prioritise margin Balanced portfolio of Focus on select core areas in improvement and accretive production and APAC, a region with
Slide 7: Jadestone Energy investment case
Jadestone Energy investment case Delivering exceptional growth, value and cashflow through operating capability, technical excellence, regional knowledge and relationships Proven Track record of exceptional value creation & entrepreneurial flair; deep experience with oil majors and large-cap manag
Slide 8: New leadership
New leadership Paul Blakeley brings a wealth of knowledge and experience to Jadestone with a very impressive track record running Talisman’s APAC business Talisman Asia Pacific production Jadestone Energy is led by Paul Blakeley, who ran Talisman’s Asia Pacific business from 2005 and spent the pri
Slide 9: Core management team
Core management team Paul Blakeley’s leadership is augmented by a management team with significant operational and technical experience Experience Core management Previous employers Experience (years) Paul Blakeley 35 Chairman and CEO Michael Horn 25 EVP Corporate and Business Development Dan Young
Slide 10: Management's track record of value creation
Management’s track record of value creation Asia-Pacific focused strategy with a proven business model to create exceptional value History of value creation 1,200 2.3x Value creation levers Step-out exploration 4.8x 2.7x Commercial 1,000 Improved recovery Appraisal 800 Project execution Incumbent /
Slide 11: Highlights for the year ended March 2017
Highlights for the year ended 31 March, 2017 A year of turnaround and transformation Recorded zero reportable incidents across portfolio HSE focus ✓ Maintained consistent zero annual TRIR for Stag and Ogan Komering Strategy reset & New strategy formulated by management and adopted by Board: bu
Slide 12: Reserves & production
Reserves & production Stag’s 2P reserves have increased by over 3.5mm bbls from Jul 2016, including production Select comments 2P Reserves2 and 2C Resources3 net to Jadestone, mm boe mm Stag’s 2P reserves at acquisition estimated at 14.6mm bbls 2P Reserves2, March 2017 bbls (GCA) 100% oil 2P res
Slide 13: Embedded value in the current asset base
Embedded value in the current asset base Downside de-risked with two cashflow generating assets and no debt, leaving C$5.35+ NAV/share upside NAV bridge, US$mm NAV bridge, C$/share8 US$mm C$/share 1,200 7 1,061 6.02 6 1,000 123 132 1,008 5.72 0.69 0.75 70 5 0.40 800 116 0.66 4 134 0.76 600 3 206 1.1
Slide 14: Future Asia-Pacific opportunities
Future Asia-Pacific opportunities Focus on known basins where we can deploy our skills to unlock trapped value Jadestone Energy core focus area Select comments Potential M&A opportunities must meet Near sanction project providing Jadestone’s strict threshold acquisition criteria infrastructure hub
Slide 15: 2017 calendar guidance
2017 calendar guidance Key focus on H2 2017—period post transfer of Stag operatorship on July 10, 2017 Key metrics for remainder of the calendar year Other significant potential H2 2017 events Further improvements in Stag 4,300—4,800boe/d for the remainder of calendar 2017 performance Production
Slide 16: Summary
Summary Delivering exceptional growth, value and cashflow through operating capability, technical excellence, regional knowledge and relationships Balanced portfolio of production and development assets, additional growth ✓ New and proven business from efficient capital reinvestment, infill drilli
Slide 17: Select Asset Highlights
SELECT ASSET HIGH ee” JADESTONE ENERGY
Slide 18: Stag
Stag Change of operatorship: July 10, 2017 Prior Operator Milestones in tier 1 regulatory environment bbl/d 3,500+ under JSE operatorship US$mm bbl/d opex Digital asset live: Jun 1, 2017 3,500 8 A B G Computerised maintenance management 7 3,000 E,F system live: Jul 1, 2017 C Average monthly prod
Slide 19: Ogan Komering outlook
Ogan Komering outlook Maximising returns on investment prior to the new PSC 2017 Production and Cost Forecast Boe/d Oil Gas Opex US$mm (Net Working Interest) 1,600 2.0 1,200 1.5 Production and 800 1.0 cost 400 0.5 optimisation 0 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Steady production
Slide 20: Ogan Komering outlook
Ogan Komering outlook Value delivery under the new PSC Existing discoveries ready to be developed Value delivery beyond PSC renewal Progress early development of existing gas discoveries Jantung Baru, North Meraksa and Bandar Agung ~100 bcf (gross) Exploration upside P50 prospective resource
Slide 21: Vietnam Block 05-1b&c PSC
Vietnam Block 05-1b&c PSC Near term development & value accretion in a very familiar neighborhood Highlights Nam Con Son Basin Phu My Heritage Talisman block US$14.3mm upfront purchase price for 30% participating interest (3900 MW) Other block Nhon Trach 158bcf gas, 6mm bbls liquids 2C resource
Slide 22: The evolution of Vietnam's domestic gas market
The evolution of Vietnam’s domestic gas market Recent gas MOUs have purportedly been signed at US$9/mm BTU and above Vietnam wellhead gas pricing, US$/mmBTU Southeast Vietnam gas supply & transportation capacity, mmscfd US$/mm BTU (2016 real) mmscf/d 14 1,600 6.1 (LT-LD) 11.2 (RD) 12W (CS-Dua) 5.2 (
Slide 23: Jadestone's Southwest Vietnam gas
Jadestone’s Southwest Vietnam gas The route to commercialise Nam Du & U Minh will be the same as TLM’s PM-03 block Malay Basin detail of Jadestone’s Southwest Vietnam gas Select comments Nam Du and U Minh discoveries are ~23km apart in adjacent Jadestone blocks Planned pipeline Immediately to th
Slide 24: Efforts to commercialise Nam Du and U Minh continue
Efforts to commercialise Nam Du and U Minh continue Jadestone is now accelerating our preferred standalone development solution Field development plan (FDP) Outline Reserve EPC, development FEED, assessment drilling, plan EPCI bid conditioning report (RAR) installation (ODP) Gas sale agreement (GSA)
Slide 25: Appendix
APPENDIX JADESTONE ENERGY
Slide 26: Attractive value vs peers
Attractive value vs peers Valuation compares favourably on reserves, production and cash flow metrics. The development projects should provide further superior long-term growth Firm Value/2P Reserves, US$/boe Firm Value/EBITDA 2017E 15 10.0x 8.0x 10 6.0x 4.0x 5 2.0x 0 0.0x Peer 2 Peer 3 Peer 1 Peer
Slide 27: 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 agr
Slide 28: Advisories
Advisories Forward Looking Statements Information Certain statements in this presentation, including “financial outlook” are forward looking statements and information (collectively “forward looking statements”), within the meaning of the applicable Canadian securities legislation, as well as other
Slide 29: 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, ope