Jadestone Energy PLC · LSE:JSE
Jadestone Energy — UBS Energy & Utilities Conference 2018
26 slides from Jadestone Energy's conference presentation, November 2018
Slide 1: Introduction to Jadestone Energy
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level Introduction to • Fifth level Jadestone Energy UBS Energy & Utilities Conference November 2018 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 Because actual results or outcomes could differ materially from those expressed in any forward looking statements, investors should not place any reliance on any such forward looking statements. By their nature, forward looking statements involve numerous assumptions, inherent risks and u
Slide 4: Advisories
Advisories Oil, Natural Gas and Natural Gas Liquids Information The oil, natural gas and natural gas liquids information in this Presentation has been prepared in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation H
Slide 5: 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% 12% 13% 20% 15% 35% 26% 53% 42% 69% Onshore Shallow water Majors & large IOCs NOCs Late life Mature Deepwater Ultra-deepwater I
Slide 6: Jadestone Energy: Right team, right place, right time
Jadestone Energy Right team, right place, right time ⚫ Primarily the ex-Talisman Asia Pacific team led by Paul Blakeley ⚫ Delivered 11% CAGR production growth over 10 years in Asia Pacific creating US$6bn Deep experience NAV business, with deep knowledge of key hydrocarbon basins ⚫ Differentiated ex
Slide 7: Jadestone Energy strategic focus
Jadestone Energy strategic focus Leverage technical & commercial capabilities to maximise value creation for shareholders Key strategic principles Jadestone core capabilities Differentiated approach to subsurface interpretation and reservoir management Acquire assets with production and/or discovere
Slide 8: Jadestone Energy, corporate overview
Jadestone Energy, corporate overview Overview Highlights Financial Statement extract ⚫ Sep 28 closed transformational acquisition of Montara As at, US$mm Jun-18 Mar-18 — ~10,000 bbls/d crude oil production, in shallow water Cash1 16.6 20.4 Northwest Australia, more than tripling the company’s Total
Slide 9: Jadestone Energy portfolio overview
Jadestone Energy portfolio overview Building a balanced, low risk, full cycle portfolio Portfolio development Key assets location Gulf of ⚫ c.14 mboe/d production from Australian oil assets planned for 2019 Thailand ⚫ Material reserve and resource base across Asia Pacific 51 SC56 ⚫ 45.3 mmboe 2P res
Slide 10: Montara asset acquisition
Montara asset acquisition Deep value acquisition with significant upside Transaction overview Production licenses AC/L7 and AC/L8, Timor Sea ⚫ 100% operated interest covering three oil producing fields Puffin ⚫ Asset acquisition announced Jul 15, 2018, closed Sep 28, 2018 ⚫ Headline price of US$195m
Slide 11: Montara overview
Montara overview Material production and cashflow for growth and dividends Highlights Montara production2, mbbl/d Jadestone W.I. 100% 16 Exploration Operator Jadestone potential 12 Production, mbbl/d 2P reserves 28.2 mmbbl Current production1 10.3 mbbl/d 8 Overview 4 Montara Swift/Swallow ⚫ Transfor
Slide 12: Montara value opportunity
Montara value opportunity Attractive acquisition price with potential to generate significant additional value Levers to unlock value Illustrative Montara value potential, US$mm Increased production ● Gas lift installation and optimisation Improve facilities uptime ● Improve uptime from c.72%1 to 84
Slide 13: Montara transition to Jadestone
Montara transition to Jadestone Influencing operations under the operator and transitional services agreement Key objectives during transition period Early activities and outcomes ⚫ Engaging NOPSEMA ⚫ Instil a culture of safety Safe ⚫ Implement downtime improvement plan ⚫ Eliminate regulatory non-co
Slide 14: Stag overview
Stag overview Simple, steady, long life underpinning production Highlights Stag production facilities Jadestone W.I. 100% Operator Jadestone 2P reserves 17.1 mmbbl Current production 3.0 - 3.6 mbbl/d Overview ⚫ Mid-life asset acquired November 2016 for US$10mm ⚫ 2P NPV10 US$84mm ⚫ Long life producti
Slide 15: Stag achievements
Stag achievements Optimising operations to grow reserves, reduce costs and add value Jadestone value drivers Operating cost reductions, US$/bbl Production & operations optimisation Prior operator Jadestone operator ⚫ Stable operations over the last quarter, averaging over 3,000 bbl/d without a singl
Slide 16: Jadestone's Southwest Vietnam gas assets
Jadestone’s Southwest Vietnam gas assets Developing significant gas resource into energy-short domestic market Overview Map of blocks 46/07 and 51 including evacuation route Jadestone W.I. 100%1 Operator Jadestone 496.8 bcf 93.8 2C resources2 mmboe 11 mmbbl Overview ⚫ Significant shallow water gas a
Slide 17: Nam Du / U Minh development progress
Nam Du / U Minh development progress Status update Clear line of sight to project sanction ⚫ On schedule for FDP approval and FID H2 2019 ⚫ Jadestone’s legacy Talisman staff have a deep understanding of ODP Vietnam’s project delivery requirements and substantial knowledge of FID H2 Approval the area
Slide 18: Ogan Komering PSC
Ogan Komering PSC Progress on Participation in the new PSC with Pertamina Update Ogan Komering, South Sumatra N Meraksa Overview (NMR) ⚫ A prior Talisman asset, currently progressing direct negotiations with Pertamina for participation in the new PSC ⚫ 1,155km2 PSC located onshore South Sumatra, Ind
Slide 19: Jadestone Energy demonstrated value creation
Jadestone Energy demonstrated value creation Two year turnaround of Mitra Energy Strategic reset1 JSE operatorship of Stag Montara FPSO class reinstatement Mitra Jadestone bbls/d Prod'n Costs $/bbl Time to re-instate FPSO class from 100 signing 5,000 80 Current 4,000 60 operator 50 Jadestone 3,000 4
Slide 20: Significant production growth
Significant production growth… Existing portfolio delivers sustained growth 40 U Minh on stream Nam Du S/ OK gas Channel fields on 30 Nam Du on stream stream Further Production1, mboe/d First two infills Infills 20 Montara acquisition 10 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 Post Acquisitio
Slide 21: Montara capped swap summary
Montara capped swap summary Overview Capped swap summary Vol, bbls US$/bbl ⚫ Swaps cover 600,000 90.00 approximately 50% of planned 2PD production for first 24 months 500,000 ⚫ Monthly settlement ⚫ Average swap prices — US$78.26/bbl for Q4 400,000 75.00 2018 — US$71.72/bbl for 2019 — US$68.45/bbl fo
Slide 22: Compelling investment opportunity
Compelling investment opportunity Jadestone currently trades at a deep discount to core NAV CPR reserves value1, US$mm Total tangible asset value, US$mm Stag Montara Stag 2P Montara 2P 2C resource4 Management estimates5 SC56 Tho Chu Ogan 974 Komering 915 88 76 793 246 564 480 317 480 US$217mm 0.38x
Slide 23: 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 generating returns for shareholders Proven regional management ⚫ End-to-end capabilities through th
Slide 24: 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 24
Slide 25: Southeast Asia gas fundamentals
Southeast Asia gas fundamentals Growing supply shortfall driving attractive pricing dynamics for producers Southeast Asia gas investment highlights Significant growth of natural gas demand, bcf/d 15 bcf/d ⚫ Region characterised by high-growth, energy- Confirmed domestic supply Demand hungry economie
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 field3 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
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