Jadestone Energy Plc · LSE:JSE
Jadestone Energy — Q2 2019 Earnings Presentation
31 slides from Jadestone Energy's earnings presentation, Aug 27, 2019
Slide 1: Q2 2019 Quarterly Results Review
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level Q2 2019 Quarterly • Fifth level Results Review August 27, 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 June 30, 2019 1 Paul Blakeley ⚫ Quarter highlights, operational update, asset performance 2 Dan Young ⚫ Financial review 3 Paul Blakeley ⚫ Outlook, conclusions 4 Team ⚫ Q&A Session 4
Slide 5: Jadestone Energy, corporate overview
Jadestone Energy, corporate overview Overview Q2 2019 highlights Financial Statement extract ⚫ Three oil liftings, record revenue, cash flow and profits As at, US$mm Jun-19 Mar-19 ⚫ Stag production increases, efficiency improvements Cash1 76.4 84.8 — 49H infill well came on stream at 1,400 bbls/d, T
Slide 6: Environmental, social, and governance priorities
Environmental, social, and governance priorities Our framework for sustainability Reporting Managing Jadestone will publish its first ever Our ESG-specific KPIs will be set, sustainability report along with its measured, and managed in exactly the financial and operating results for the same way as
Slide 7: Stag achievements and outlook
Stag achievements and outlook Optimising operations to grow reserves, reduce costs and add value Overview Operating cost reductions1, US$/bbl ⚫ Production—averaged 2,615 bbls/d in Prior operator Jadestone operator Q2 2019, impacted by delayed workovers due to 49H drilling — 37H and 44H pump change-o
Slide 8: Montara riserless light well intervention
Montara riserless light well intervention A highly efficient intervention campaign Illustration Advantages Faster set up time on location Short travel time between wells No riser run to surface Deployment of heavy items off well centre Most cost effective setup for electric-line 2 4 71 Gas
Slide 9: Montara select opex reduction initiatives
Montara select opex reduction initiatives Approximate annual net savings, US$mm $5.0 Campaign maintenance $5.1 100% $2.3 Perth office support Head office costs costs 100% ~$25mm 100% Total opex $9.0 savings $1.5 Shared Stag/ Organisation right Montara inspection sizing1 resource3 90% $2.0 50% New su
Slide 10: The Montara value opportunity
The Montara value opportunity On track to deliver significant additional value Levers to unlock value (US$mm) Attractive acquisition cost Strong acquisition metrics: <$7 per bbl 2P reserves / <$19,000 per flowing bbl 2P reserve adds Gas lift installation and optimisation. New umbilical Uptime improv
Slide 11: Nam Du/U Minh
Nam Du/U Minh Continued progress on development Select define phase/pre-sanction workstreams Nam Du/U Minh in 2019 ⚫ WHP specialty engineering—completed ✓ ⚫ Modest spending in 2019: Engineering ⚫ Facilities & pipeline FEED—completed ✓ Total = ~US$11mm ⚫ Well concept finalisation & engineering—comple
Slide 12: Financial review—key headlines
Financial review—key headlines Operational delivery strengthens the balance sheet and generates significant cash Overview Average production and hydrocarbon prices ⚫ Another record quarter Q2 2019 Q1 2019 H1 2019 — Record net revenue of US$115.3mm — Record profit after tax of US$22.6mm ⚫ Montara pro
Slide 13: Financial results—quarterly cash bridge
Financial results—quarterly cash bridge Montara demonstrating strong positive cash generation US$mm Cash balance 150 Qtly ordinary cashflow Qtly non-recurring cashflow 51 21 20 100 9 4 1 12 3 85 14 15 3 76 50 Stag: cashflow impacted by 49H infill capex, but rapid payback Montara: significant positiv
Slide 14: Financial results—Q2 2019 EBITDAX
Financial results—Q2 2019 EBITDAX Q2 adjusted EBITDAX reconciliation 3 months ended June 30, 2019 Add back depletion, Add back/(less) depreciation, 3 months ended US$’000s Reported non-recurring exploration Adjusted June 30, 2018 Revenue 115,341 (1,376) - 113,965 17,496 Production cost (39,337) 6,94
Slide 15: Montara capped swap summary
Montara capped swap summary Overview Capped swap summary Vol, bbls Dated Brent US$/bbl ⚫ Swaps cover 600,000 90 approximately 50% of planned 2PD production to Sep 30, 2020 500,000 ⚫ Average swap prices — US$71.72/bbl for 2019 — US$68.45/bbl for Q1- 400,000 75 Q3 2020 ⚫ Upside participation secured o
Slide 16: 2019 guidance
2019 guidance Production, major spend, and opex Full year average production, boe/d Full year major spend1, US$mm Full year base opex2, US$/boe Not before 2020 40 20 H1 2020 Stag infill & other Montara umbilical 0 Montara LWI Montara seismic Montara Stag Jadestone Montara Stag Ogan Komering Montara
Slide 17: Jadestone portfolio work programme
Jadestone portfolio work programme Fully funded programme of material near-term catalysts 2019 2020+ Asset Country Activity Q1 Q2 Q3 Q4 Implement Jadestone operating Montara philosophy Operations Montara Montara production optimisation Transfer of operatorship Montara to Jadestone Stag Infill drilli
Slide 18: Compelling investment opportunity
Compelling investment opportunity Jadestone currently trades at a deep discount to core NAV Total tangible asset value, US$mm Total tangible asset value, GBP/share US$mm Stag 2P Montara 2P £ /share Stag 2P Montara 2P 2C resource 1 Management estimates 2 2C resource 1 Management estimates 2 1,250 2.0
Slide 19: 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 20: 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 20
Slide 21: 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 22: 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 23: Jadestone Energy
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 24: 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—14,500 bbls/d production guidance for 2019 Gulf of Thailand ⚫ Material reserve and resource base ⚫ Fully-funded near-term value catalysts 51 SC56 — Infil
Slide 25: 2P reserves and 2C resources
2018 year end update on 2P/2C reserves/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 — To
Slide 26: 2019/2020 Australian tax outlook
2019/2020 Australian tax outlook Key highlights Australian corporate tax overview Australian petroleum resource rent tax (“PRRT”) overview ⚫ Corporate tax rate of 30% of ⚫ Tax at 40% of “PRRT profits”, based on a Jul to Jun tax year, paid quarterly in arrears taxable profits, on a calendar — Based o
Slide 27: Swallow-1 additional perforations
Swallow-1 additional perforations Accessing more reservoir Overview ⚫ Swallow-1 drilled as part of the original Montara development ⚫ Jadestone identified potential to access three additional zones New and comingle perforations production ⚫ Perforated using latest technology three-and-a- half inch g
Slide 28: 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 29: Nam Du/U Minh phased development concept
Nam Du/U Minh phased development concept Overview of field development plan Description of overall development concept ⚫ 2 minimum facilities, not-normally attended wellhead platforms ⚫ 2 gas production wells per wellhead platform, drilled by jack-up drilling rig ⚫ Central processing facility— lease
Slide 30: 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 Illustration of Nam Du / U Minh development concept ⚫ Minimal facilities, not-normally attended wellhead platforms, one at each field, tied back to a leased FPSO a
Slide 31: Nam Du/U Minh development schedule
Nam Du/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 2017