Jadestone Energy Plc · LSE:JSE
Jadestone Energy — Q4 2018 Earnings Presentation
27 slides from Jadestone Energy's earnings presentation, Apr 18, 2019
Slide 1: Quarterly Results Review
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level Dec 31,• 2018 Fourth level • Fifth level Quarterly Results Review Apr 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 and any question‐and‐answer session that may follow (collectively, the "Presentation"). In viewing the Presentation, you agre
Slide 3: Advisories
Advisories In addition, statements relating to “reserves” and “resources” are deemed to be forward looking statements as they involve the implied assessment based on certain estimates and assumptions that the reserves or resources described can be profitable produced in the future. There are numerou
Slide 4: Agenda
Agenda Webcast presentation: quarter ended December 31, 2018 Paul 1 Blakeley ⚫ Quarter highlights, corporate update, developments 2 Dan Young ⚫ Financial review Paul 3 Blakeley ⚫ Outlook, conclusions 4 Team ⚫ Q&A Session 4
Slide 5: Jadestone Energy, corporate overview
Jadestone Energy, corporate overview Overview Quarter highlights Financial Statement extract ⚫ Q4 2018 ends a transformational year for Jadestone As at, US$mm Dec-18 Sep-18 ⚫ Stag safe operations continue, preparing for 49H infill Cash1 81.6 74.3 — Two key wells down for a portion of the quarter Tot
Slide 6: Financial review—key headlines
Financial review—key headlines Strong balance sheet, demonstrated strong cash flow generation Overview Average production (net WI) and hydrocarbon prices ⚫ Record quarterly net revenue of US$45.0 million, up 38% over the prior quarter Dec 31, Sep 30, Quarter ending 2018 2018 — First production (Octo
Slide 7: Financial results—quarterly cash bridge
Financial results—quarterly cash bridge First cash flow results post acquisition of Montara US$mm Cash balance 125 Qtly ordinary cashflow 32.6 21.0 Qtly non-recurring cashflow 29.4 6.4 4.8 100 21.9 17.3 0.2 18.6 1.9 3.9 0.7 75 81.6 74.3 Montara: one lifting, and working 50 capital changes largely of
Slide 8: Financial results—EBITDAX
Financial results—EBITDAX Q4 adjusted EBITDAX reconciliation 3 months ended December 31, 2018 Depletion, depreciation, 3 months ended US$’000s Reported Non-recurring exploration Adjusted December 31, 2017 Revenue 44,972 - - 44,972 17,775 Production cost (50,002) (9,647) - (40,355) (8,960) Depletion,
Slide 9: Montara capped swap summary
Montara capped swap summary Overview Capped swap summary Vol, bbls Dated Brent US$/bbl ⚫ Swaps cover 600,000 90 approximately 50% of planned 2PD production for first 24 months of Jadestone ownership 500,000 ⚫ Average swap prices — US$78.26/bbl for Q4 400,000 75 2018 — US$71.72/bbl for 2019 — US$68.4
Slide 10: 2019 Australian tax outlook
2019 Australian tax outlook Key highlights Australian corporate tax overview Australian petroleum resource rent tax (“PRRT”) overview ⚫ Corporate tax rate of 30% of ⚫ Tax applied at 40% of “PRRT profits” taxable profits, on a calendar — Based on a Jun 30 tax year, paid quarterly in arrears year basi
Slide 11: Compelling investment opportunity
Compelling investment opportunity Jadestone currently trades at a deep discount to core NAV Total tangible asset value, US$mm Total tangible asset value, GBP/share US$mm Stag 2P Montara 2P £ /share Stag 2P Montara 2P 1,250 2C resource 1 Management estimates 2 2C resource 1 Management estimates 2 2.0
Slide 12: 2019 guidance: production, major spend and opex
2019 guidance: production, major spend and opex Re-entry into Ogan Komering assumed effective Oct 1, 2019 Full year average production, boe/d Full year major spend1, US$mm Full year base opex2, US$/boe 40 20 0 Stag infill & other Montara umbilical Montara Stag Ogan Jadestone Montara LWI Montara seis
Slide 13: Jadestone portfolio work programme
Jadestone portfolio work programme Fully funded programme of material near-term catalysts 2019 2020+ Asset Country Activity Q1 Q2 Q3 Q4 Implement Jadestone operating Montara philosophy Operations Montara Montara production optimisation Transfer of operatorship Montara to Jadestone Stag Infill drilli
Slide 14: Montara major offshore activity in 2019
Montara major offshore activity in 2019 Overview Summary of 2019 offshore major activities Montara platform, subsea wells and FPSO ⚫ Low risk infill well, targeting unswept oil Montara H6 along western main fault infill well ⚫ Developing 1.8mm bbls 2P reserves ⚫ Adds >3,000 bbls/d production in 2020
Slide 15: Montara activity in 2019 (cont'd)
Montara activity in 2019 (cont’d) Select production optimisation & opex reduction initiatives Production optimisation Opex reduction ⚫ Swift, Skua and Swallow well ⚫ Instilling Jadestone operating philosophy, interventions planned for Q2 including centralised support group and ⚫ Production optimisat
Slide 16: Stag achievements and outlook
Stag achievements and outlook Optimising operations to grow reserves, reduce costs and add value Overview Operating cost reductions, US$/bbl Production & operations optimisation Prior operator Jadestone operator ⚫ Production in Q4 2018 averaged 2,644 bbls/d, impacted by downtime of 36H and 37H, two
Slide 17: Stag infill well 49H
Stag infill well 49H First development well drilled in six years, with other targets identified Infill well 49H illustrated on Stag NFA remaining oil map, Jan 2031 Comments ⚫ First Stag infill since 2013, commenced drilling in Mar ⚫ Targeting 1.2mm bbls ST- unswept oil in a higher ST- ST- 32H 45H 18
Slide 18: Nam Du/U Minh—progress on development
Nam Du/U Minh—progress on development Pre-sanction workstreams are on schedule to support FID in 2019 Select define phase/pre-sanction workstreams Select updates ⚫ Facilities & pipeline FEED Staffing: core project/commercial team fully staffed & operational; 5-year staffing plan being developed ⚫
Slide 19: Nam Du/U Minh phased development concept
Nam Du/U Minh phased development concept Overview of field development plan Illustration of wellhead platform Description of overall development concept ⚫ Minimum facilities, unmanned, wellhead platforms installed by jack-up drilling rig ⚫ 2 production wells per platform ⚫ Central processing facilit
Slide 20: Year end update on 2P reserves and 2C resources
Year end update on 2P reserves and 2C resources 43 mm bbls 2P reserves, 9 year reserve life Select comments 2P reserves1 and 2C resources2 net to Jadestone, mmboe mmbbls ⚫ Montara’s 2P reserves are unchanged from acquisition, 50 100% oil 2P Reserves1, Dec. 2018 save for 2018 production 40 6 43 — Tot
Slide 21: Other considerations
Other considerations Overview ⚫ Ability to fund from existing capital and future cash flow. Will seek to part debt fund a Nam Du/U Minh share of the capital costs ⚫ Open to consider a farm-down of a non-operated stake on or around project sanction ⚫ Expect to re-engage with Pertamina on re-entry int
Slide 22: Jadestone Energy investment highlights
Jadestone Energy investment highlights A strategy that works, a high value portfolio, and a plan for value accretive growth ⚫ Proven in-region management team with a track record of value creation and shareholder return generation Proven regional management ⚫ End-to-end capabilities through the upst
Slide 23: Appendix
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level Appendix • Fifth level www.jadestone-energy.com 23
Slide 24: Asia Pacific region
Asia Pacific region Maturing hydrocarbon region with significant running room; ideal for Jadestone Asia Pacific reserve breakdown Development type Company Maturity 3% 4% 8% 13% 20% 12% 15% 35% 26% 53% 42% 69% Onshore Shallow water Majors & large IOCs NOCs Late life Mature Deepwater Ultra-deepwater I
Slide 25: Southeast Asia gas fundamentals
Southeast Asia gas fundamentals Growing supply shortfall driving attractive pricing dynamics for producers Southeast Asia gas investment highlights Growth in domestic natural gas shortfall, bcf/d ⚫ Region characterised by high-growth, energy-hungry bcf/d Demand Domestic supply economies 15 ⚫ Natural
Slide 26: 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 Project development outline ODP illustration of Nam Du/U Minh development concept ⚫ Simple design with a conductor supported well head platform for each field, tied back to an FPSO at Nam Du
Slide 27: Recap of the Montara value opportunity
Recap of the Montara value opportunity Attractive acquisition price with potential to generate significant additional value Levers to unlock value Illustrative Montara value potential, US$mm Increased production US$mm 800 ● Gas lift installation and optimisation Improve facilities uptime ● Improve u