Jadestone Energy Plc · LSE:JSE
Jadestone Energy — Q2 2018 Earnings Presentation
28 slides from Jadestone Energy's earnings presentation, Aug 28, 2018
Slide 1: Results for Quarter Ending June 30, 2018
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level Results for• Quarter Fourth level • Fifth level Ending June 30, 2018 August 28, 2018 1 www.jadestone-energy.com
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: 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: Agenda
Agenda Webcast presentation: quarter ended June 30, 2018 1 Paul 1 Blakeley ⚫ Quarter highlights, corporate update, developments 2 Dan Young ⚫ Financial review Paul 3 Blakeley ⚫ Outlook, conclusions 4 Team ⚫ Q&A Session 5
Slide 6: Jadestone Energy, quarterly review
Jadestone Energy, quarterly review Overview Quarter highlights Financial Statement extract ⚫ Transformational acquisition of Montara As at, US$mm Jun-18 Mar-18 — ~10,300 bbls/d crude oil production shallow water Northwest Cash1 16.6 20.4 Australia, more than tripling the company’s production Total a
Slide 7: Financial review—key headlines
Financial review—key headlines Continuing improvements in uptime as Jadestone philosophy is fully embedded Overview Average production (net WI) and hydrocarbon prices ⚫ Quarterly revenue of US$18.3mm Jun 30, Mar 31, Quarter ending 2018 2018 — Per day production up Q-on-Q, but total production down d
Slide 8: Financial results—quarterly cash bridge
Financial results—quarterly cash bridge Transitional quarter with Ogan Komering and Montara/London raise & listing costs US$mm Cash balance Ogan Komering: cashflows for 40 Qtly ordinary cashflow period to May 19. Accumulated cash generation of $5.2mm versus Qtly non-recurring cashflow1 14.6 purchase
Slide 9: Montara acquisition
Montara acquisition Deep value acquisition with significant upside Transaction overview Production Licenses AC/L7 and AC/L8, Timor Sea ⚫ Asset acquisition of 100% operated interest covering three oil producing fields Puffin ⚫ Cash consideration of US$195mm1, effective Jan 1, 2018 Plantagenet ⚫ 2P Re
Slide 10: Funding of Montara & progress to closing
Funding of Montara & progress to closing Acquisition funding in place and on track for September/October closing Sources & uses, US$mm Progress on major steps to closing acquisition Sources USmm Main steps to closing Status update RBL 120 New equity raised Est. cash as at July 31 due to Jadestone1 7
Slide 11: Compelling investment opportunity
Compelling investment opportunity Jadestone currently trades at a deep discount to core NAV CPR reserves value, US$mm Total tangible asset value, US$mm Stag3 Montara3 2P reserves3 2C resource4 Management estimates5 915 SC56 0.30x 0.32x Tho Chu 974 974 Ogan Komering 88 76 0.52x 564 246 0.52x 793 564
Slide 12: Montara overview
Montara overview Material production and cashflow for growth and dividends Jadestone W.I. 100% Montara production2 16 Operator Jadestone 2P reserves 28.2 mmbbl Exploration Production (mbbl/d) 12 potential Current production1 10.3 mbbl/d 8 Overview ⚫ Transformational acquisition, with immediate 4 Mon
Slide 13: Montara value opportunity
Montara value opportunity Attractive acquisition price with potential to generate significant additional value Key transaction drivers Illustrative Montara value potential, US$mm Increased production ● Gas lift installation and optimisation Improve facilities uptime ● Improve uptime from c.72%1 to 8
Slide 14: Stag development and exploration potential
Stag development and exploration potential Significant further investment opportunities exist Active drilling programme Stag development schematic ⚫ 5 well campaign (as per the 2P reserves plan) across Stag: Infill producer ⚫ 49H (to be drilled Nov ’18) and 52H infill wells Infill injector targeting
Slide 15: Jadestone's Southwest Vietnam gas assets
Jadestone’s Southwest Vietnam gas assets Developing significant gas resource into energy-short domestic market Jadestone W.I. 100%1 Operator Jadestone 496.8 bcf 93.8 2C resources2 mmboe 11 mmbbl Overview ⚫ Significant shallow water gas and condensate resource in three fields, close to existing infra
Slide 16: Jadestone portfolio work programme
Jadestone portfolio work programme Fully funded programme of material near-term catalysts 2018 2019 2020+ Asset Country Activity Q3 Q4 Q1 Q2 Q3 Q4 Implement Jadestone Operations Montara operating philosophy Montara production Montara optimisation Infill drilling campaign Stag (5 wells) Production 2P
Slide 17: Jadestone Energy: Right team, right place, right time
Jadestone Energy Right team, right place, right time ⚫ Primarily an 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 exp
Slide 18: Jadestone Energy portfolio overview
Jadestone Energy portfolio overview Building a balanced, low risk, full cycle portfolio Portfolio development Key asset locations Gulf of ⚫ c.14 mboe/d production from Australian oil assets Thailand ⚫ Material reserve and resource base across Asia Pacific 51 SC56 ⚫ 45.3 mmboe 2P reserves 46/07 ⚫ 117
Slide 19: Appendix
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level Appendix • Fourth level • Fifth level 19 www.jadestone-energy.com
Slide 20: Asia Pacific Region
Asia Pacific Region Maturing hydrocarbon region with running room; ideal operating area 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-deepwate
Slide 21: 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 bcf/d ⚫ Region characterised by high-growth, 15 Confirmed domestic supply Demand energy-hungry economies
Slide 22: Jadestone Energy investment highlights
Jadestone Energy investment highlights A strategy that works, a high value portfolio, and a funded plan for accretive growth ⚫ Proven in-region management team with a track record of value creation and generating returns for shareholders Proven regional ⚫ End-to-end capabilities through the upstream
Slide 23: Jadestone Energy strategic focus
Jadestone Energy strategic focus Leverage technical & commercial capabilities to maximise shareholder value creation Key strategic principles Core Jadestone capabilities Differentiated approach to subsurface interpretation and reservoir management Acquire assets with production and/or discovered 1 r
Slide 24: Financial results—EBITDAX
Financial results—EBITDAX Jadestone reports positive EBITDAX for the June quarter 2018 3 months ended June 30, 2018 Depletion, 3 months ended depreciation, June 30, 2017 US$’000s Reported Non-recurring exploration Adjusted reported Revenue 18,333 - - 18,333 18,134 1 Royalties (837) 1,094 - (1,931) (
Slide 25: Ogan Komering PSC
Ogan Komering PSC Opportunity to deliver significant value under new PSC with Pertamina Onshore existing oil & gas production Ogan Komering quarterly production and operating costs (net) boe/d Oil Gas Opex US$mm Overview 1,600 3.0 ⚫ Prior Jadestone asset, currently progressing direct discussion 2.5
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 ⚫ Simple design with a conductor supported well head platform for each field, tied back to an FPSO at Nam Du ⚫ 2 wells per field provide back-up capacity to meet
Slide 27: Nam Du and U Minh development schedule
Nam Du and U Minh development schedule Accelerating Jadestone’s standalone development solution Select highlights ⚫ Outline Development Plan (ODP) approved May 2018 ⚫ FEED, field development plan studies and gas sales agreement preparation are in progress ⚫ Anticipate FDP approval c.Q3 2019 ⚫ First
Slide 28: Significant production growth
Significant production growth… Montara complements existing portfolio to deliver sustained growth ⚫ Balanced portfolio of oil and gas production reaching c.30 mboe/d by 2023 ⚫ Business resilience from a mix of life-of-field fixed price gas contracts and oil production in a concession environment ⚫ H