Jadestone Energy PLC · LSE:JSE
Jadestone Energy — Corporate Update (May 2019)
32 slides from Jadestone Energy's corporate update, May 2019
Slide 1: Corporate Overview
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level Corporate• Overview Fourth level • Fifth level May 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: 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$6bn NAV business, with deep knowledge of key hydrocarbon basins Deep experience ⚫ Differentiated ap
Slide 5: Core management team
Core management team A team with significant operational, technical and commercial experience Experience Core management Previous employers Experience (years) Paul Blakeley 36 CEO Michael Horn 26 EVP Corporate & Business Development Dan Young 22 CFO David Lamb 36 Country Manager, Indonesia Ha Nguyen
Slide 6: Southeast Asia gas fundamentals
Southeast Asia gas fundamentals Growing supply shortfall driving attractive pricing dynamics for producers Southeast Asia gas investment highlights Growth in domestic natural gas shortfall, bcf/d ⚫ Region characterised by high-growth, energy-hungry bcf/d Demand Domestic supply economies 15 ⚫ Natural
Slide 7: Asia Pacific region
Asia Pacific region Maturing hydrocarbon region with significant running room; ideal for Jadestone Asia Pacific reserve breakdown Development type Company Maturity 3% 4% 8% 13% 20% 12% 15% 35% 26% 53% 42% 69% Onshore Shallow water Majors & large IOCs NOCs Late life Mature Deepwater Ultra-deepwater I
Slide 8: Jadestone Energy, corporate overview
Jadestone Energy, corporate overview Overview Q4 2018 highlights Financial Statement extract ⚫ Q4 2018 ends a transformational year for Jadestone As at, US$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 9: Jadestone Energy—updated portfolio overview
Jadestone Energy—updated portfolio overview Building a balanced, low risk, full cycle portfolio Portfolio development Key assets location ⚫ 13,500—15,500 bbls/d production guidance for 2019 Gulf of Thailand ⚫ Material reserve and resource base ⚫ Fully-funded near-term value catalysts 51 SC56 — Infil
Slide 10: 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 $/bbl Time to re-instate FPSO class from 100 signing 5,000 80 Current 4,000 60 operator 50 Jadestone 3,000 4
Slide 11: Stag achievements and outlook
Stag achievements and outlook Optimising operations to grow reserves, reduce costs and add value Overview Operating cost reductions, US$/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 12: 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 13: 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
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): well H6
Montara activity in 2019 (cont’d) New well H6 drains updip area to the west of the Montara Field Forecast NFA remaining oil map Jan, 2031 Overview ⚫ Developing 1.8mm bbls 2P reserves and more than Proposed H4 sidetrack 3,000 bbls/d production in 2020 (2C) ⚫ Utilising an existing unused slot on Monta
Slide 16: Montara activity in 2019 (cont'd): Skua-11 heel
Montara activity in 2019 (cont’d) Well intervention on Skua-11 heel removes immediate need for an infill well Skua-11: top view & cross section Overview ⚫ In the past, Skua-11 was producing only from Skua-10 its toe ⚫ Inflow control valve (ICV) has not been Planned Skua-12 functioning since well com
Slide 17: 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 18: Jadestone's Southwest Vietnam gas assets
Jadestone’s Southwest Vietnam gas assets Developing a significant gas resource into the 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
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: Nam Du/U Minh—progress on development
Nam Du/U Minh—progress on development Pre-sanction workstreams are on schedule to support FID later 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 develo
Slide 21: Nam Du and U Minh development schedule
Nam Du and U Minh development schedule Roadmap to first gas Key milestones Vietnam PSC milestone Project delivery phase Reserve Outline development Field development assessment plan (ODP) plan (FDP) report (RAR) Project execution Concept selection phase Project define phase phase Q1 2016 Q4 2016 Q4
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 26
Slide 27: Jadestone Energy—strategic focus
Jadestone Energy—strategic focus Leverage technical & commercial capabilities to maximise value for shareholders Key strategic principles Jadestone core capabilities Differentiated approach to subsurface analysis and reservoir management Acquire assets with production and/or discovered 1 resources i
Slide 28: 2P reserves and 2C resources year-end update
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 29: 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 30: 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 31: Vietnam domestic gas prices
Vietnam domestic gas prices Established market prices of $7—$9/mmbtu Well-head gas pricing in Vietnam, $/mmbtu US$/mmbtu 10—12 12 9—10.5 10 ~9 7—8 8 6 3—4 4 2 0 Legacy Recently New gas HSFO LNG GSAs executed under HOA GSAs Select comments ⚫ Recent established domestic wellhead gas price range of $7—
Slide 32: 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