Jadestone Energy Plc · LSE:JSE
Jadestone Energy — Investor Day (February 2020)
88 slides from Jadestone Energy's investor day presentation, Feb 25, 2020
Slide 1: Capital Markets Event
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level Capital Markets • Fifth level Event February 25, 2020 www.jadestone-energy.com 1
Slide 2: Evacuation procedures
Evacuation procedures Adelaide House, King William Street Fire action Sound the alarm Leave the building by the nearest available exit Evacuate to Muster Point 3 under London Bridge Do not return to the Do not collect personal Do not use the lifts building until belongings authorised 2
Slide 3: Today’s presenters
Today’s presenters Summary Paul Blakeley, Executive Director, President & Ha Nguyen, Group Commercial Manager Chief Executive Officer l 17 years of E&P and business development l 41 years of E&P experience, including over 20 experience with BP and Talisman Energy years at Talisman Energy l Significa
Slide 4: 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 any question-and-answer session that may follow, and any additional documents handed out at the presentation (collectively, t
Slide 5: Advisories
Advisories Certain of the information in this Presentation is “financial outlook” as approved by the Company’s Board of Directors as at February 20, 2020 within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding the Compan
Slide 6: Agenda
Agenda Overview Paul Blakeley l Overview, performance, ESG and outlook Henning l Subsurface—a differentiated approach Hoeyland Owen Hobbs l Operations—optimising the performance of our producing assets Ha Nguyen l Development—moving into execution phase on Nam Du/U Minh Dan Young l Finance—strong ca
Slide 7: ESG framework
ESG framework Our framework for sustainability Social and Governance Environment human capital and leadership P Excellence in environmental P Exceptional occupational P Demonstrating strong management health and safety culture leadership P Reducing our energy and P Promoting workplace P Prioritising
Slide 8: ESG overview
ESG overview Sustainability at Jadestone l Asset/resource maximisation Sustainability is a core l Most efficient use of existing infrastructure & facilities value l Extending field life creates a more sustainable business l Material matters mapped and reviewed ESG mapped l 2019 sustainability report
Slide 9: Group HSE performance
Group HSE performance Key measures HSE targets and goals Select reported metrics ND/UM Lost time injury rate Target Zero Stag Montara (Since Jan 2019) Total recordable injury rate Target Zero TRIR Zero 9.91 Zero (TRIR) Reportable environmental Days since Target Zero 2,660 1,345 420 incidents last LT
Slide 10: Jadestone’s performance culture
Jadestone’s performance culture Accountability at all levels l Hands-on leadership clearly articulate Jadestone values, goals and measurable priorities l Business success relies on everyone pulling together – no passengers – challenging everything l Accountability is pushed down to all levels in the
Slide 11: Talent retention and compensation strategy
Talent retention and compensation strategy Strong focus on performance delivery & alignment Three main elements of compensation l Base salary—benchmarked with industry at 50th percentile Fixed & variable cash l Benefits—pension, healthcare & group term life, for all employees compensation l Performa
Slide 12: Jadestone’s performance culture
Jadestone’s performance culture Sample CEO performance agreement Weighting % Target Outcome - % (indicative) Achieve 2020 Operations Targets: • Maintain HSE Performance at Top Quartile 30% • Deliver Plan Capital Programs and Production Targets • Deliver Work Programs and Improved Performance Environ
Slide 13: Asia Pacific region—the opportunity set
Asia Pacific region—the opportunity set Maturing hydrocarbon region with significant running room; ideal for Jadestone Reserves by water depth Reserves by company Reserves by maturity 3% 4% 8% 12% 13% 20% 15% 35% 100bn 100bn 100bn 26% boe boe boe 53% 42% 69% Onshore Shallow water Majors & large IOCs
Slide 14: APAC oil fundamentals
APAC oil fundamentals Overview APAC is the world’s largest oil consumer APAC consumption vs production, mm bbls/d Consumption Production l 36% of global demand mm bbls/d 40 l CAGR of 3% p.a. for the period 2008—2018 30 — vs. global demand growth 1% 20 l Regional production can only meet ~20% demand
Slide 15: 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 l High-growth, energy-hungry economies bcf/d Demand Supply 20 l Natural gas volume demand CAGR of 2% p.a
Slide 16: Jadestone’s strategic focus is unchanged
Jadestone’s strategic focus is unchanged Leverage technical & commercial capabilities to maximise value 1 Acquire assets with production and/or discovered resources in APAC region 4 2 Add additional reserves and Realise additional value from production volumes through existing producing assets, thro
Slide 17: Jadestone today vs. Mitra 2016
Jadestone today vs. Mitra 2016 Snapshot of three-year turnaround Production Revenue1 Operating cashflow1,2 Headcount bbls/d US$mm US$mm Number 20,000 350 200 200 Maari Offshore Montara + Stag Onshore 0 0 0 May 2016 Dec 2019 2016 2019 -10 May 2016 Dec 2019 2016 2019 Share price ADTV Equity value Ente
Slide 18: 2019 at a glance
2019 at a glance Montara bedded down, guidance met Guidance Select major 2019 milestones 13,500 Production, bbls/d ü 49H infill well at Stag, Q2 14,500 ü Group is net cash positive, Q2 12,000 15,000 ü RLWI + umbilical replacement at Montara, Q3 Major spend1, US$mm 66 ü Transfer of Montara operatorsh
Slide 19: Jadestone Energy—updated portfolio overview
Jadestone Energy—updated portfolio overview Building a balanced, low risk, full cycle portfolio Key assets location Reserves/resources by asset Gulf of 2P1 2C2 Thailand Asset Country W.I. (%) Production (net WI) / status (mm bbls) (mm boe) SC56 Maari 69% 13.9 -- 4,000—4,500 bbls/d 51 46/07 Montara 1
Slide 20: Maari asset acquisition
Maari asset acquisition Strong acquisition metrics, quick payback, significant reservoir upside Transaction overview l 69% operated interest in two producing oil fields l Headline cash consideration of US$50mm — Economic effective date of Jan 1, 2019 — Oil price contingent payments of up to US$3.6mm
Slide 21: Nam Du/U Minh gas development
Nam Du/U Minh gas development Sanction expected this quarter Overview Location and development concept l High quality channel sands reservoirs l 171bcf 2C resources, plus further ~31bcf from Nam Du South l Two unmanned WHPs, two wells per field, and leased FPSO l Gas sales to existing Ca Mau power/f
Slide 22: Inorganic growth
Inorganic growth As anticipated, Jadestone’s potential opportunity set continues to grow Recent press Inorganic growth principles l Disciplined geographic envelope Upstream l Consistent with strategy l Strict financial criteria — Accretive — Returns and payback — Test economics for mid- life assets
Slide 23: Other major initiatives
Other major initiatives Overview l Lisa Stewart, petroleum engineer, joined December Board l 30+ years in the international upstream industry, including Apache and El Paso E&P l 2020 dividend guidance of US$7.5—12.5mm Dividends l Won’t sacrifice organic reinvestment and inorganic growth optionality
Slide 24: Group production outlook
Group production outlook 5 year outlook Production in excess of 30 mboe/d from current portfolio by 2022 mboe/d 40 30 20 10 0 2019A 2020E 2021E 2022E 2023E 2024E 1 2 3 1 4 Australia New Zealand Vietnam Organic growth + M&A 1 Jadestone 2019YE reserve profiles currently under audit by independent audi
Slide 25: Group equity free cashflow outlook
Group equity free cashflow outlook Group cashflow grows dramatically following ND first gas Group equity free cashflow evolution1 US$mm 500 Significant Capital - ND/UM & Infill drilling 250 Group closing cash, Dec 2019 0 2019A 2020E 2021E 2022E 2019A US$50/bbl US$60/bbl US$70/bbl 1 Gross equity free
Slide 26: Agenda
Agenda Overview Paul Blakeley l Performance, overview and outlook Henning l Subsurface—a differentiated approach Hoeyland Owen Hobbs l Operations—optimising the performance of our producing assets Ha Nguyen l Development—moving into execution phase on Nam Du/U Minh Dan Young l Finance—strong cashflo
Slide 27: Subsurface workflow example
Subsurface workflow example Fit for purpose workflow is essential Greenfield workflow Midlife field workflow Geology Geophysics Petrophysics Engineering Geology Geophysics Performance data Engineering Petrophysics Model Model Performance data l Input stage is a siloed approach by discipline l Input
Slide 28: Stag subsurface overview
Stag subsurface overview Low decline stable oil production l Original oil in place ~175mm bbls, gross production 67mm bbls, recovery factor 38% l Medium heavy oil l Good reservoir quality, at depth of 680 mSS l Expected recovery factor ~47% l Low decline rate <10%, stable oil production l 12 active
Slide 29: Stag 49H infill reservoir results
Stag 49H infill reservoir results First infill well on Stag in 6 years Predicted, partial swept area ~225m with a 7-8m oil column ~200m with a 6m oil column Blank pipe to 1,830m MD Well results met or exceeded pre-drill expectations l Initial oil rate of 1,400 bbls/d met pre-drill expectation l Expe
Slide 30: Stag future development
Stag future development Optimising development plan with infill targets and donor wells pairing Remaining Oil Map @ 01.01.2031 l Identified 5 potential locations for infill targets — 4 producers ST-18H — 1 water injector ST-32H ST-45H ST-37H l ST-49H ST-17H successfully drilled ST-48H in May 2019 ST
Slide 31: Stag production profile
Stag production profile Four firm infill wells included in 2P reserves Production profile1 including 4 infill producers1, 100% net to Jadestone, oil bbls/d bopd 4,000 2,000 2P reserves life: 2035 0 2019 2020 2021 2022 2023 2024 Base 50H 51H 52H 53H 1 Based on Jadestone 2019YE reserve profiles curren
Slide 32: Montara subsurface overview
Montara subsurface overview Excellent reservoirs with high productivity l Light oil l Great reservoir quality (>1,000mD) l Strong regional aquifer giving excellent pressure support l Montara field – thin oil rim with large gas cap and gas re- injection l Skua, Swift and Swallow – crestal producers a
Slide 33: Montara field overview
Montara field overview Infill well planned in thin oil rim to improve drainage close to bounding fault Montara reservoir facts G2 Proposed H6 G2 l Large gas cap with strong water drive Proposed H6 M-3 from regional aquifer M-3 H4 — 1 gas injector to assist gas cap H4 aquifer aquifer expansion H3 H3
Slide 34: Skua field overview
Skua field overview Crestal infill wells targeting remaining oil left between producers Skua reservoir facts BASE CRETACEOUS STRUCTURE DEPTH MAP Skua-05 l Strong water drive from regional aquifer l Initially developed by 3 vertical oil producers (1991 – 1997) Skua-14 aquifer l Redeveloped with 2 hor
Slide 35: Montara production profile
Montara production profile 3 infill wells included in 2P and more opportunities being evaluated Production profile1 including further potential2, 100% net to Jadestone, bbls/d bopd 14,000 7,000 2P reserves life: 2032 0 2019 2020 2021 2022 2023 2024 Base H6 Skua Infills Further potential 1 Based on J
Slide 36: Further growth opportunities for Montara
Further growth opportunities for Montara Both discovered resources and exploration upside available New 3D broadband seismic acquired Q1 2020 Will allow better imaging of existing discovered resource and nearby exploration 36
Slide 37: Maari and Manaia oil fields
Maari and Manaia oil fields Subsurface summary l Offshore Taranaki basin, 80km from shore l 4-way inversion anticline structures l Mid Miocene Moki turbidite reservoirs (at ~1,300mSS) and Eocene Mangahewa fluvial reservoirs (at ~2,000mSS) l 4 E&A wells in Maari and 2 E&A wells in Manaia l Fields are
Slide 38: Maari and Manaia oil fields
Maari and Manaia oil fields Discovery and development history Discovery Manaia field (1970) Maari field (1983) Early development Maari Moki: 5 producers1, 3 inj.2 First oil Maari Sequence 0: 1 producer (Feb 2009) Seq 0 Manaia Mangahewa: 1 producer Moki 2nd phase development (2014 - 2015) Manaia Moki
Slide 39: Maari Moki reservoir
Maari Moki reservoir Further development upside in Maari Moki Maari Moki (producing) l Original oil in place of ~150mm bbls l Original development was not optimal for the reservoir — Initial deviated water injectors were later given up — Horizontal oil producers were converted to injectors l Reservo
Slide 40: Maari and Manaia oil fields
Maari and Manaia oil fields Further development upside Maari Sequence 0 (producing) l Large oil in place (>70mm bbls) and poorer quality than other Maari reservoirs l Sole horizontal well producing very stable rates, no water breakthrough so far l 2P includes one coiled tubing drilled lateral l 2P r
Slide 41: Maari production profile—first five years
Maari production profile—first five years Significant near-term production adds beyond the 2P reserves case Maari production profile including upside1,2, 69% net to Jadestone, bbls/d bopd 8,000 2P reserves + Maari and Manaia upside 4,000 technical cutoff: 2038 2P reserves life: 2031 0 2020 2021 2022
Slide 42: Vietnam subsurface overview
Vietnam subsurface overview Driven by world class seismic l Three gas discoveries. Two of them, Nam Du & U Minh selected for initial development l Reservoir depth ~1,300m tvdss in Nam Du ~1,600m tvdss in U Minh l Excellent reservoir quality l Low CO2 (~2-3%) gas l Uncertainty and risk manageable due
Slide 43: Block 46/07: Nam Du discovered gas
Block 46/07: Nam Du discovered gas H070 reservoir summary A ND-1X A’ Mean FULLRAI seismic amplitude A’ FULLRAI Seismic cross-section along channel extraction overlaid on H070 top structural map (C.I = 10m) H070 H070 Block 45 C GW Southern Fault Block Northern Fault Block l Gas was discovered by ND-1
Slide 44: Block 51: further potential beyond U Minh discovery
Block 51: further potential beyond U Minh discovery Shallow low CO2 gas around U Minh H-100 NE H-100 NE H-100 (North), F-040a, H-050 H-060 51-UM-1X H-060a, H-070a F-040b H-060b, H-070b F-040 F-040c 51-MH-1X H-070c Proposed development wells Potential appraisal/exploration targets Several shallow, lo
Slide 45: Jadestone consolidated production profile
Jadestone consolidated production profile Growth to ~30 mboe/d by 2022 Production profile, based on current organic sources, mboe/d mboe/d 50 Additional growth from organic and 40 M&A activity Current 2P/2C shows 30 clear line-of-sight to a c. 30mboe/d company by 2022 20 10 0 2019 2020 2021 2022 202
Slide 46: Jadestone Group reserves & resources summary
Jadestone Group reserves & resources summary A material opportunity set Jadestone reserves and resources, mm boe mm boe 250 200 150 100 50 0 Stag 2P Montara 2P 2019 Reserve 1 2019YE 1 Nam Du 2 Maari 3 Expected Expected U Minh 2 ND 4 Tho Chu 5 Other 6 Resour ce (2018YE) (2018YE) Production Add (1.1.2
Slide 47: Subsurface inorganic growth evaluations
Subsurface inorganic growth evaluations Jadestone estimate vs seller estimate Higher Montara reserves/ Maari resource Same reserves/ resource Lower reserves/ resource 2016-09-01 2016-10-02 2016-11-02 2016-12-03 2017-01-03 2017-02-03 2017-03-06 2017-04-06 2017-05-07 2017-06-07 2017-07-08 2017-08-08 2
Slide 48: Agenda
Agenda Overview Paul Blakeley l Performance, overview and outlook Henning l Subsurface—a differentiated approach Hoeyland Owen Hobbs l Operations—optimising the performance of our producing assets Ha Nguyen l Development—moving into execution phase on Nam Du/U Minh Dan Young l Finance—strong cashflo
Slide 49: An established offshore operator
An established offshore operator Substantial asset portfolio Australia and New Zealand portfolio l Three producing operated assets l Tier 1 regulatory regime l Demonstrated capability — Transition of operations — Asset rejuvenation Stag: Nov 2016 Montara: Sep 2018 — Mid life asset operations — Field
Slide 50: Jadestone’s asset lifecycle model
Jadestone’s asset lifecycle model Optimise/sustain growth and late life operations Optimise / Late Life Acquire Transition Operate Sustain Growth Operations Production Due diligence Transition management Define organisation Facilities rationalisation optimisation Asset evaluation Ops readiness Ops r
Slide 51: Operational HSE performance
Operational HSE performance Zero lost time incidents across Stag and Montara in 2019 Select reported KPIs Key recent regulatory activities l Lifted all 8 regulatory enforcement notices under previous Montara operator Days since TRIR1 last LTI l Transferred Montara operatorship l 9 regulatory inspect
Slide 52: Stag update
Stag update Foundation asset acquired in 2016 that has underpinned business expansion Development overview Comments l Northwest Shelf petroleum province/ Carnarvon Basin, shallow water l Heavy sweet crude — API 19⁰, sulphur 0.14% — Strong premiums due to IMO 2020 l 12 electrical submersible pumps l
Slide 53: Stag value addition
Stag value addition Improved platform availability Increasing production and reducing opex1 Production Increase US$/bbl bbls/d Cost, US$/bbl 50 bbls/d Production, bbls/d 4,000 l Well 12H pre-emptive workover increasing efficiency l Initial low pressure mode trial Above-normal cyclone activity l 49H
Slide 54: Stag 2020 opex overview
Stag 2020 opex overview FSO represents the highest single item of spend and the greatest opportunity Major areas of opex focus Opex mix FSO l Step change options Labour l Streamline management layers l Increase efficiency of workovers Workovers l Fully transition to Baker pumps FSO Employee & labour
Slide 55: Montara update
Montara update Transformational acquisition in 2018 adding significant value Development overview Comments l Ashmore/Cartier Basin, shallow water l Light sweet crude — Blended API 39⁰, Sulphur 0.07% l Owned FPSO l Unmanned wellhead platform l 4 producers + 1 injector on WHP, 5 subsea wells l 2019 av
Slide 56: Montara—value is increased after acquisition
Montara—value is increased after acquisition Consistent with Jadestone’s strategy of revitalising mid life assets Levers to unlock value (US$mm) Attractive acquisition cost Strong acquisition metrics: <$7 per bbl 2P reserves / <$19,000 per flowing bbl 2P reserve adds Production optimisation, reservo
Slide 57: Montara performance
Montara performance Jadestone involvement; year on year improvement Increasing production and reducing opex1 Production optimisation US$/bbl bbls/d Cost, US$/bbl 30 15,000 l Skua 11 and Swallow back on line bbls/d l Reduced facility operating pressure— increase production without gas lift RLWI, umbi
Slide 58: Montara 2020 opex overview
Montara 2020 opex overview Logistics represent highest spend and greatest opportunities Major areas of opex focus Opex mix l Remediation Wells l Gas lift optimisation/flow assurance l Pressure l Uptime/reliability l Produced water management Facilities l Improved tank access l Remote WHP restart l A
Slide 59: Capability and innovation
Capability and innovation Montara riserless light well intervention, Q3 2019 RLWI illustration Overview l Intervention into well bore without the use of a rig or riser/conduit to surface — First time in Australia with digital wireline technology l Business case driven by — Faster set-up time on loca
Slide 60: Montara umbilical cable replacement
Montara umbilical cable replacement Rapid resolution of previous operator’s number 1 critical business risk Immediately addressed, successfully resolved, field life integrity restored 60
Slide 61: Maari project overview
Maari project overview Mid life asset with significant upside Illustration of facilities Overview l Taranaki Basin, shallow water l Owned FPSO — 50,000 bbls/d processing capacity + 590,000 bbls storage l Self-elevated well head platform — Integrated workover unit l Wells subject to artificial lift v
Slide 62: Maari—incremental opex reduction opportunities
Maari—incremental opex reduction opportunities Opportunities identified to date during due diligence and transition First phase opex reduction targets Operating philosophy l Operator l Cost efficient culture l Second phase operational and technical capabilities l Reservoir management and optimisatio
Slide 63: Proven transition capabilities
Proven transition capabilities Track record in successfully transitioning operated producing offshore assets Illustrative dashboard of transition workstreams (source: Montara) Comments l Extensive proven experience, including Stag & Montara l Early deployment of technical and operational secondees l
Slide 64: Agenda
Agenda Overview Paul Blakeley l Performance, overview and outlook Henning l Subsurface—a differentiated approach Hoeyland Owen Hobbs l Operations—optimising the performance of our producing assets Ha Nguyen l Development—moving into execution phase on Nam Du/U Minh Dan Young l Finance—strong cashflo
Slide 65: Vietnam macro energy market snapshot
Vietnam macro energy market snapshot Strong energy demand driven by rapid economic growth Southeast Asia GDP growth (y-o-y%) 2018 GDP per capita (US$ current) Vietnam power generation (TWh) 64,582 8% 5.2% 6.7% 7.1% 400 % +7 . 11,239 p.a 6% 7,274 +8% 4% 200 p.a. 3,893 2% 2,564 0% 0 2012 2015 2018 Vie
Slide 66: Southwest Vietnam gas market
Southwest Vietnam gas market Established demand with significant upside l Fragmented market, with lack of network connectivity Southeast l Established demand from Ca Mau complex, 100% owned by Petrovietnam Nhon Southwest Trach Phu My — Power station and fertiliser plant requires stable gas supply of
Slide 67: Southwest Vietnam gas market (cont’d)
Southwest Vietnam gas market (cont’d) Urgent need for new supply Ca Mau gas supply, mmcf/d Select comments mmcf/d l PM3 underlift to Vietnam now balanced 250 — Equity gas insufficient supply Pipeline capacity: 215mmcf/d l Negotiation for Malaysian piped gas 200 l No existing infrastructure or immedi
Slide 68: Vietnam domestic gas prices
Vietnam domestic gas prices Established market prices of $7—$9/mmbtu Well-head gas pricing in Vietnam, $/mmbtu mmbtu 10—12 12 9—10.5 Regas + 10 ~9 transportation 7—8 Import duty 8 6 CP to Asia1 3—4 4 2 0 Legacy GSAs Recently executed GSAs New gas under HOA Imported pipe gas LNG Select comments l Gov
Slide 69: Nam Du/U Minh project
Nam Du/U Minh project Key milestones achieved GSPA heads of FDP first draft FDP submitted FDP passed to agreement submitted to Regulator Government Office signed with buyer for review for approval for PM approval Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Completed Approval of LoI issued for facilities
Slide 70: Vietnam Nam Du/U Minh project
Vietnam Nam Du/U Minh project Production and cashflow Cashflow (US$mm) and production (mboe/d) Comments US$mm mboe/d Capex (LHS) Operating cashflow (LHS) 1 l Stable operating cashflow 200 2 20 Free cashflow (LHS) Production (RHS) — Production under a take-or-pay contract 150 — Fixed gas price, unlin
Slide 71: Project team for Nam Du/U Minh
Project team for Nam Du/U Minh Deep experience of successful Vietnam project delivery General Jadestone manager corporate support 12 years in Vietnam Subsurface Development Contracts HSE Drilling Supply chain Production manager manager manager manager manager manager Commercial 17 years 11 years Vie
Slide 72: Nam Du/U Minh project
Nam Du/U Minh project Keeping the costs under control Facilities EPCI capex + FPSO capex Opex Contingency Variable Variable Fixed Fixed l Majority of project execution and operating costs are fixed, and US$ contracted l FPSO fixed price (contractor bears risks related to execution costs) — Bareboat
Slide 73: Nam Du/U Minh project
Nam Du/U Minh project On track for first gas in 2021 Project execution plan PTSC Yard, Vung Tau, Vietnam 2020 2021 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FID WHP & pipeline facilities EPC Engineering & procurement WHP & facilities fabrication & load out Pipeline coating & load out T&I, HUC, start up, & fi
Slide 74: Agenda
Agenda Overview Paul Blakeley l Performance, overview and outlook Henning l Subsurface—a differentiated approach Hoeyland Owen Hobbs l Operations—optimising the performance of our producing assets Ha Nguyen l Development—moving into execution phase on Nam Du/U Minh Dan Young l Finance—strong cashflo
Slide 75: Group base case cash generation
Group base case cash generation Base case at US$60/bbl, 2P/2C volumes Substantial Group cash generation notwithstanding Nam Du/U Minh development spend (US$mm) US$mm 400 2019 Australian Generates 2019 corporate tax1 closing cash of ~US$100mm 200 0 2019A 2020E 2021E 2022E 3 FY2019 tax Operating cashf
Slide 76: Discretionary and profitable capital spend
Discretionary and profitable capital spend 2020 capex guidance and medium term outlook Capex outlook1, US$mm US$mm 250 “Major Spend” (inclusive of RLWI). Includes ~US$22mm of interventions treated as opex 0 2019A 2020E 2021E 2022E Australia New Zealand Vietnam Actual 1 2019A is “major spend” as it i
Slide 77: Lookback on capital spent
Lookback on capital spent Case studies for Montara and Stag infill 49H at US$60/bbl Brent Purchase of 100% operated interest in Montara, US$mm ~70% unlevered IRR (2P profile) Payback in Q4 1 2019/less than 2 years Stag 49H infill well—first infill since 2013, US$mm 34% unlevered IRR (2P profile) 1 ~
Slide 78: Opex—relentless, but safe, focus on costs
Opex—relentless, but safe, focus on costs 2020 guidance and medium term outlook Group and asset opex/boe1 US$/boe US$/boe 2019 40 30 guidance 2020 range guidance Stag (2019) range Stag (2022) Maari (2019) Montara (2019) ND/UM (2022) Maari (2022) Montara (2022) 0 0 2019A 2020E 2021E 2022E 0 20 mboe/d
Slide 79: Oil price realisations continue to strengthen
Oil price realisations continue to strengthen Montara and Stag oil price premia Premium to Dated Brent, US$/bbl Comments US$/bbl Montara Stag 21.00 l Referenced to Tapis and Dated Brent 12 — Tapis at a ~US$4-6/bbl Montara Avg last three liftings: premium to Brent US$13.80/bbl 10 l API ~39⁰, and sulp
Slide 80: Outlook for estimated decommissioning costs
Outlook for estimated decommissioning costs Jadestone’s ARO provision is currently being revised downwards Analogue: UKNS decomm. total costs Reducing Jadestone ARO provision Comments ARO at £bn Sep 30, 2019: l Conservative assumptions 60 US$291mm l Industry continues to see cost reductions — UKNS o
Slide 81: RBL—enlarged, amended and extended
RBL—enlarged, amended and extended Overview The RBL is being enlarged and amended/extended Group net debt/EBITDAX outlook3,4 Net debt/ Original RBL New facility EBITDAX US$50/bbl 1.0x US$60/bbl US$70/bbl Banks 2 61 0.5x Initial sizing US$120mm US$200mm Facility Term loan Reducing revolver 0.0x Tenor
Slide 82: Capped swap—strong downside oil price protection
Capped swap—strong downside oil price protection Bias toward further downside price protection at least through to ND first gas Existing capped swap summary Comments Vol, bbls Dated Brent l Swaps cover approximately 50% of US$/bbl Montara production for first 9 months of 500,000 90 2020 l US$68.45/b
Slide 83: Dividend guidance for 2020 maintained
Dividend guidance for 2020 maintained Maiden target of US$7.5—12.5mm announced September 2019 September 2019 announcement Policy context l Strong organic cash generation from operations “…. The Company is targeting a 2020 maiden full year l Prioritise organic reinvestment dividend in the range of US
Slide 84: 2020 guidance
2020 guidance Versus 2019 guidance, 2019 actual and 2018 actual 2018 actual1 2019 guidance 2019 actual 2020 guidance Production, 4,057 13,500—14,500 13,531 13,500—15,500 bbls/d boe/d bbls/d bbls/d bbls/d Capex2, US$160—190 US$10mm US$66—81mm2 US$78mm2 US$mm mm Opex, US$28.72/ US$21.00—24.00/ US$22.9
Slide 85: Group work programme
Group work programme Medium term outlook of activity across the Jadestone portfolio Asset Activity 2020 2021 2022+ Production optimisation & opex Montara reductions Operations Production optimisation & opex Stag reductions Complete transition/operatorship, Maari embed Jadestone operating culture Mon
Slide 86: Agenda
Agenda Overview Paul Blakeley l Performance, overview and outlook Henning l Subsurface—a differentiated approach Hoeyland Owen Hobbs l Operations—optimising the performance of our producing assets Ha Nguyen l Development—moving into execution phase on Nam Du/U Minh Dan Young l Finance—strong cashflo
Slide 87: Jadestone Energy—value and growth
Jadestone Energy—value and growth Building the foundations of a 30,000 boe/d business by 2022 Project execution of Nam Du/U Minh Drill Montara H6 Operator transfer of and Stag 50H Maari tuck-in Major areas of Further opex Improve uptime management reductions performance focus in 2020 Define further
Slide 88: Q&A
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level • Fifth level Q&A www.jadestone-energy.com 88