05:19:07 EDT Tue 19 Mar 2024
Enter Symbol
or Name
USA
CA



Jadestone Energy Inc
Symbol JSE
Shares Issued 221,298,004
Close 2018-04-23 C$ 0.48
Market Cap C$ 106,223,042
Recent Sedar Documents

Jadestone Energy earns $800,000 (U.S.) in Q4

2018-04-24 11:03 ET - News Release

Mr. Paul Blakeley reports

JADESTONE AUDITED RESULTS FOR 9M TO DEC 2017

Jadestone Energy Inc., formerly Mitra Energy Inc., has provided its consolidated audited financial statements as at and for the nine-month period ended Dec. 31, 2017.

This is a transitional reporting period, as the company moves to reporting its financial information based on a calendar year-end instead of Jan. 1, 2018. For this transitional period, comparative financial information is provided for the year ended March 31, 2017.

Highlights:

  • Stag oil field reached a safety milestone of no lost-time incidents (LTI) for over five years and Ogan Komering achieved more than 3.1 million man-hours without an LTI;
  • Positive net income for the December quarter, a first for the company, of $800,000 (U.S.), increased from a net loss of $8.6-million (U.S.) in the same quarter a year ago;
  • Positive cash flow generated from operations (before movements in working capital) of $3.2-million (U.S.), increased from a loss of $5.6-million (U.S.) in the same quarter a year ago;
  • Total liquids production of 360,776 barrels for the quarter from the Stag oil field and from the Ogan Komering PSC, and natural gas production of 247,086 million British thermal units from Ogan Komering, for a total average production of 4,369 barrels of oil equivalent per day (net working interest) for the quarter, an increase of 55 per cent over the same quarter a year ago;
  • Revenue of $20.9-million (U.S.) in the quarter, arising from one Stag crude oil lifting of 238,658 bbl on Nov. 24 as well as continuing sales from Ogan Komering, and before government share of production/royalties of $3.2-million (U.S.). This is an increase from $17.9-million (U.S.) in the same quarter a year ago;
  • Production costs of $9.0-million (U.S.) in the quarter, reduced from $18.3-million (U.S.) in the same period a year ago. This is due to reduced production costs, including working costs, relative to the comparable period under the prior operator, and the fair value measurement of the crude oil inventory acquired in the comparable period as part of the Stag acquisition;
  • Proved plus probable reserves at December, 2017, of 17.1 million bbl at Stag, which is a small increase on the number reported at the March, 2017, year-end, allowing for nine months of subsequent production, and excluding any reserves at Ogan Komering, as these will be finalized alongside participation in the planned new PSC.

"We continue to report new firsts for Jadestone Energy shareholders," commented Paul Blakeley, president and chief executive officer. "In the December quarter, we generated our first operating net profit and again generated positive cash flow from operations. While commodity prices were notably higher, and partly explain our strong financial performance, we also managed to significantly lower our per unit production costs. Compared to our September, 2017, quarter, per unit production costs are down by 42 per cent. I believe this illustrates the high calibre of operating expertise we have embedded in the Jadestone team, and showcases our ability to manage midlife and mature assets like Stag and Ogan Komering efficiently and to drive excellent operational, and resultant financial, performance.

"Over the last 18 months, we have completely repositioned this company, and have turned around the business into one that meshes well with the energy market dynamics of the Asia Pacific region. We are generating strong and positive results with the assets we have acquired, and will continue to seek opportunities to deploy our abilities to other assets in the region."

The company continues to pursue its strategy of deploying its proven operating capability, in select areas in the Asia Pacific region, to create value through multiple strands of reinvestment activity, including organic growth by investing to reduce costs at its producing assets, increasing production, and moving its existing discovered resources to production, as well as via inorganic growth through acquiring assets with production or discovered resources.

Operations update

Crude oil production at Stag averaged 3,009 barrels per day during the quarter to Dec. 31, 2017, increased by approximately 7 per cent from the same quarter a year ago.

Operations at Stag benefited from increased well performance and production efficiency, but were also impacted by a series of unplanned downtime events arising from the repeated failure of critical safety equipment on the floating storage and offloading vessel (FSO), which is operated by a third party. The company is working with the FSO operator to ensure these events are not repeated, and is in discussions with the FSO operator in relation to the impact of these events, including the resultant deferred production.

Production at the Ogan Komering PSC averaged 913 bbl/d liquids and 2,686 million British thermal units per day gas (net working interest) during the quarter to Dec. 31, 2017. Production rates remain relatively stable with the impact of natural declines in the producing fields, largely offset by continuing efficiency gains and reactivations of older wells. Subsequent to the end of the December, 2017, quarter, Jadestone, together with its partner Pertamina, were appointed to temporarily operate the Ogan Komering working area for a period of up to six months beyond the PSC's expiry date of Feb. 28, 2018. This arrangement will continue until a new gross split PSC is awarded by Indonesia's Minister of Energy and Mines.

Jadestone's participation in a new contract for the asset will be determined through business-to-business negotiations, which are progressing. The company continues to enjoy positive working relationships with both regulators and its partner, credited to the team's long history with this asset.

Jadestone also continues to work closely with Vietnam Oil and Gas Group (PVN), the Vietnamese NOC, toward commercializing the U Minh and Nam Du gas fields, offshore southwest Vietnam. In November, 2017, the company submitted revised outline development plans (ODP) in respect of the fields, proposing a stand-alone development. Concurrently, Jadestone is in the early stages of front-end engineering and design (FEED), field development plan studies and the preparation of a gas sales agreement.

Jadestone generated adjusted $4.7-million (U.S.) earnings before interest, tax, depletion depreciation, amortization and exploration expense (EBITDAX) for the quarter ended Dec. 31, 2017, compared with a negative EBITDAX of $4.6-million (U.S.) in the same period a year earlier.

The company reported total book costs of production of $13.1-million (U.S.) during the quarter including non-cash depletion and amortisation costs of $4.2-million (U.S.); or $22.29 (U.S.) per barrel of oil equivalent production, net of non-cash depletion and amortization costs.

Investing activities for the quarter amounted to a cash outflow of $600,000 (U.S.), including top deck enhancement work at Stag.

The company has $10.4-million (U.S.) in cash, plus a further $10.0-million (U.S.) of cash in support of a bank guarantee, and another $13.0-million (U.S.) undrawn on the company's convertible bond facility.

Selected financial information

The attached table provides selected financial information of the company, which was derived from, and should be read in conjunction with, the consolidated audited financial statements for the period ended Dec. 31, 2017.

                         QUARTERLY COMPARISON

                                         December, 2017, December, 2016,
                                                quarter         quarter

Production, mboe                                  402.0           140.9
Sales, mboe                                       363.8           380.5
Avg. realized liquids price, U.S.$/bbl           $60.39          $47.13
Sales revenue, U.S.$ million                       20.9            17.9
Capital expenditure (1), U.S.$ million              0.6             1.3

                         QUARTERLY COMPARISON

                                         December, 2017, September, 2016,
                                                quarter          quarter

Production, mboe                                  402.0            394.3
Sales, mboe                                       363.8            406.8
Avg. realized liquids price, U.S.$/bbl           $60.39           $54.28
Sales revenue, U.S.$ million                       20.9             21.4
Capital expenditure (1), U.S.$ million              0.6              1.2

Yearly comparison                  Year to December, 2017   Year to March, 2017 (2)

Production, mboe                                  1,165.7                    401.0
Sales, mboe                                       1,133.5                    687.9
Avg. realized liquids price, U.S.$/bbl             $55.06                   $51.39
Sales revenue, U.S.$ million                         60.4                     35.1
Capital expenditure (1), U.S.$ million                2.6                      5.2

(1) Payment for oil and gas property, plant and equipment, and intangible 
    exploration assets. Excludes acquisition related capital expenditure.

(2) Comparable reporting period for the current transitional period for the nine 
    months ended Dec. 31, 2017.

Conference call and webcast

The management team will host an investor and analyst conference call at 9 p.m. Singapore time, 2 p.m. London time and 9 a.m. Toronto time on Tuesday, April 24, 2018, including a question-and-answer session.

The live webcast of the presentation will be available on-line. Dial-in details are provided in the attached table. Please register approximately 15 minutes prior to the start of the call. The results for the period ended Dec. 31, 2017, will be available on the company's website.

Event conference title:  Jadestone Energy results briefing (period ending Dec. 31, 2017)

Start time/date:  9 a.m. Toronto time, Tuesday, April 24, 2018

Access code:  21842342

Country               Toll-free           Toll

Australia         1-800-885-618   
Brazil            0800-8923-753
Canada           1-855-691-7946
China              800-820-8527   400-612-6501
France             080-598-0146    1-7048-9663
Germany           0800-627-0798
Hong Kong                            3077-3569
India            1-800-266-0296   44-6652-9460
Indonesia         0800-140-1813   21-2188-9014
Italy                             02-3859-4129     
Japan             0800-805-0683    3-4455-9589
Malaysia          1-800-821-039    3-2053-1805
Mexico           01800-282-2724   
Netherlands                        20-721-9503  
New Zealand        0800-10-1179
Philippines     1-800-1110-2453
Poland           0080-0331-1432
Singapore        1-800-429-8326      6653-5870
South Africa       0800-111-036  
South Korea    007-9885-2173-88   70-4784-4089
Switzerland        0800-000-658
Taiwan             0800-231-758    2-8723-1212
Thailand       001-800-852-4525
United Kingdom    0800-0260-027   33-0587-8105
U.S.             1-855-8219-305   240-254-3156
Vietnam                         84-869-419-504

Area access numbers are subject to carrier 
capacity and call volumes.

About Jadestone Energy Inc.

The company is currently engaged in production, development, and exploration and appraisal activities in Australia, Indonesia, Vietnam and the Philippines. Following a recent strategic review, the company is focusing on acquiring assets with production in the near term, and where significant follow-on reinvestment opportunities exist to enhance value, as well as undeveloped discoveries which may be rapidly brought to production.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.