TIDMJSE
RNS Number : 7616G
Jadestone Energy Inc.
19 March 2020
Jadestone Energy Inc.
Revised 2020 Capex Guidance and Update on the Southwest Vietnam
Gas Development
March 19, 2020-Singapore: Jadestone Energy Inc. (AIM:JSE,
TSXV:JSE) ("Jadestone" or the "Company"), an independent oil and
gas production company focused on the Asia Pacific region, provides
an update on its 2020 capital expenditure guidance.
In light of current market conditions, and in order to continue
to maintain the Company's strong balance sheet in these uncertain
times, Jadestone is reviewing its 2020 capital programme. In the
absence of the receipt of Vietnamese Government approvals of the
field development plan ("FDP") for the Nam Du and U Minh gas field
developments, Jadestone has decided to delay this project.
Jadestone will remove substantially all capital spending which had
been planned for the project in 2020, resulting in a 50%, or circa
US$90mm reduction to its 2020 capex guidance for the year, which is
now expected to be US$80-95mm.
This decision is not just a recognition of the impact of new
measures to conserve the Company's capital resources, but focuses
on the largest and longest element of the Company's 2020 capital
programme, and one which would not have contributed cash flow
before Q4 2021. This had assumed receipt of Vietnamese Government
approvals in Q1 2020, and as this has not been forthcoming, the
expected first gas date for the project will be no earlier than
late 2022.
The remaining 2020 capital programme largely comprises infill
drilling at Montara and Stag, and remains entirely discretionary.
The Company will continue to evaluate all capital investments,
including potential inorganic growth opportunities, based on
anticipated accretive value add for shareholders, while maintaining
balance sheet strength.
As of January 31, 2020, Jadestone had an unaudited cash balance
of US$116.0mm, including restricted cash of US$10mm and gross
outstanding interest bearing debt of US$50.1mm. The Company expects
to remain operating cash flow positive even at oil prices below
US$30/bbl, owing largely to downside price protection through
hedging and significant pricing premia on oil from its producing
assets in Australia. The mark-to-market value of the hedge as at
February 28, 2020 was over US$18.0mm in favour of the Company.
Paul Blakeley, President and CEO commented:
"We are committed to maintaining capital discipline through the
current uncertain environment. While the level of economic turmoil
is unprecedented, I am pleased that we retain substantial
flexibility and will remain nimble, and course correct as
necessary, to ensure ongoing value add to our shareholders.
"Nam Du and U Minh are an important domestic gas resource for
Vietnam, which will ultimately contribute to generating clean power
and essential fertiliser for the ongoing development of the
Southwest Vietnam economy. But, with ongoing Vietnamese Government
delays to the FDP approval process, there is a short-term option
for us to defer our spending commitments on the project, which
we've decided to take. Vietnam currently has the potential to take
temporarily cheap competitor piped gas, which is oil price linked
and benefitting from the current market dislocation, and the Nam Du
and U Minh fields can be developed when investment conditions
improve."
- Ends -
Enquiries
Jadestone Energy Inc. +65 6324 0359 (Singapore)
Paul Blakeley, President and CEO +1 403 975 6752 (Canada)
Dan Young, CFO +44 7392 940 495
Robin Martin, Investor Relations Manager ir@jadestone-energy.com
Stifel Nicolaus Europe Limited (Nomad, +44 (0) 20 7710 7600 (UK)
Joint Broker)
Callum Stewart
Simon Mensley
Ashton Clanfield
BMO Capital Markets Limited (Joint Broker) +44 (0) 20 7236 1010 (UK)
Thomas Rider
Jeremy Low
Thomas Hughes
Camarco (Public Relations Advisor) +44 (0) 203 757 4980 (UK)
Billy Clegg jadestone@camarco.co.uk
James Crothers
About Jadestone Energy Inc.
Jadestone Energy Inc. is an independent oil and gas company
focused on the Asia Pacific region. It has a balanced, low risk,
full cycle portfolio of development, production and exploration
assets in Australia, Vietnam and the Philippines.
The Company has a 100% operated working interest in the Stag
oilfield and the Montara project, both offshore Australia. Both the
Stag and Montara assets include oil producing fields, with further
development and exploration potential. The Company has a 100%
operated working interest in two gas development blocks in
Southwest Vietnam and is partnered with Total in the Philippines
where it holds a 25% working interest in the SC56 exploration
block. In addition, the Company has executed a sale and purchase
agreement to acquire an operated 69% interest in the Maari Project,
shallow water offshore New Zealand, and anticipates completing the
transaction in H2 2020, upon receipt of customary approvals.
Led by an experienced management team with a track record of
delivery, who were core to the successful growth of Talisman's
business in Asia, the Company is pursuing an acquisition strategy
focused on growth and creating value through identifying,
acquiring, developing and operating assets in the Asia Pacific
region.
Jadestone Energy Inc. is currently listed on the TSXV and AIM
but, as announced on February 25, 2020, the Company is being
voluntarily de-listed from the TSXV. It is expected that the final
day of trading for Jadestone's common shares on the TSXV will be
March 24, 2020. The Company is headquartered in Singapore. For
further information on Jadestone please visit
www.jadestone-energy.com .
Cautionary statements
Certain statements in this press release are forward-looking
statements and information (collectively "forward-looking
statements"), within the meaning of the applicable Canadian
securities legislation, as well as other applicable international
securities laws. The forward-looking statements contained in this
press release are forward-looking and not historical facts.
Some of the forward-looking statements may be identified by
statements that express, or involve discussions as to expectations,
beliefs, plans, objectives, assumptions or future events or
performance (often, but not always, through the use of phrases such
as "will likely result", "are expected to", "will continue", "is
anticipated", "is targeting", "estimated", "intend", "plan",
"guidance", "objective", "projection", "aim", "goals", "target",
"schedules", and "outlook"). In particular, forward-looking
statements in this press release include, but are not limited to
statements regarding anticipated timing to both FDP approval of,
and first gas production from the Nam Du and U Minh development,
expected reductions to capital spending, the Company's ability to
remain operating cash flow positive at prices below US$30/bbl and
the carrying out of the Company's other capital spending projects
including infill wells at both Montara and Stag.
Because actual results or outcomes could differ materially from
those expressed in any forward-looking statements, investors should
not place undue reliance on any such forward-looking statements. By
their nature, forward-looking statements involve numerous
assumptions, inherent risks and uncertainties, both general and
specific, which contribute to the possibility that the predicted
outcomes will not occur. Some of these risks, uncertainties and
other factors are similar to those faced by other oil and gas
companies and some are unique to Jadestone. The forward-looking
information contained in this news release speaks only as of the
date hereof. The Company does not assume any obligation to publicly
update the information, except as may be required pursuant to
applicable laws.
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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