TIDMJSE
RNS Number : 5391S
Jadestone Energy Inc.
17 March 2021
Jadestone Energy
Internal Reorganisation & Reserves Update
17 March 2021-Singapore: Jadestone Energy Inc. (AIM:JSE) (the
"Company" or "Jadestone" or including subsidiaries, the "Jadestone
Group"), an independent oil and gas production company focused on
the Asia Pacific region, is pleased to provide an update on the
Company's proposed internal reorganisation, and on its reserves
estimates for the year ended 31 December 2020.
Internal reorganisation update
As announced on 1 February 2021, Jadestone is proposing an
internal reorganisation (the "Reorganisation") of its corporate
structure, such that the ultimate parent holding company of the
Jadestone Group will be a new company, incorporated in England and
Wales. The Reorganisation will not result in a change in control in
the ultimate holding company of the Jadestone Group and,
accordingly, it will also not result in a change in the ultimate
shareholding in any of the Company's assets, nor will it result in
a change in the management of any of its assets.
The Reorganisation is expected to reduce regulatory compliance
burdens, resulting in estimated annual cost savings of between
US$0.5 million and US$1.0 million, when taken in connection with
savings from last year's delisting from Canada's TSX Venture
Exchange. In addition, Jadestone's board believes the
Reorganisation will further raise the Company's profile and status
amongst UK and European investors who are unable to invest in
non-UK domiciled companies. Given that its peer group of companies
are predominantly London listed and domiciled in the UK, this move
should facilitate incremental access to equity from the
international capital market. It is also expected to allow
Jadestone to further optimise its tax structure.
The Company filed certain court documents on Monday 15 March in
relation to the proposed Reorganisation, including a plan of
arrangement (the "Arrangement"), which will require court approval.
Subject to court approval, the Reorganisation will be proposed to
shareholders for voting at a Special Meeting (the "Meeting") of
shareholders, to be held on or about 20 April 2021. Jadestone
intends to post documents to shareholders on or about 22 March
2021, including a formal notice of the Meeting and a management
information circular which will provide instructions on how
shareholders can vote their shares at the Meeting, as well as
detailed instructions for the eventual conversion of existing
Jadestone Energy Inc. shares to shares in the new parent company
Jadestone Energy Plc, assuming the Arrangement is approved by
shareholders and the Court.
Jadestone's two largest shareholders, in addition to all
directors, collectively representing 33.5% of Jadestone's total
outstanding shares, have entered into agreements with the Company
indicating their voting support for the Arrangement.
Reserves update
As part of the Reorganisation, the Company commissioned ERC
Equipoise Pty Ltd ("ERCE") to produce competent person's reports
("CPRs") covering the Lemang asset acquired in December 2020 and
the Maari asset, which is to be acquired by the Company pending
satisfaction of regulatory consents. The Company also commissioned
its annual statement of reserves and resources comprising its
producing Stag and Montara assets, offshore Western Australia, and
which was prepared in accordance with Canada's national instrument
51-101. The CPRs and 51-101 report have been made available today
on the Company's website at
www.jadestone-energy.com/assets/reserves/ .
As of 31 December 2020, the Company had proved plus probable oil
reserves ("2P reserves") of 37.1 mm bbls at 31 December 2020,
decreased by 4.7 mm bbls from 31 December 2019. The decrease
primarily reflects the impact of oil production during the
year.
Reserves and resources estimates for both Lemang and Maari are
substantially unchanged from the Company's previous
disclosures.
Summary of reserves for Stag and Montara
Gross Net attributable
Proved, Proved,
(all figures Proved probable Proved probable
in mm bbls) Proved & probable & possible Proved & probable & possible Operator
======= ============ ============ ======= ============ ============ ==========
Oil & liquids reserves by assets (mm bbls)
Stag 9.6 13.7 19.4 9.6 13.7 19.4 Jadestone
======= ============ ============ ======= ============ ============ ==========
Montara 13.6 23.5 35.0 13.6 23.5 35.0 Jadestone
======= ============ ============ ======= ============ ============ ==========
Total oil &
liquids 23.2 37.1 54.4 23.2 37.1 54.4
======= ============ ============ ======= ============ ============ ==========
Source: ERCE 2021
Summary of contingent resources for Lemang
Gross Net attributable
(all figures
in mm bbls Low Best High Low Best High Risk
or bscf) estimate estimate estimate estimate estimate estimate factor Operator
---------- ---------- ---------- ---------- ---------- ---------- -------- ----------
Oil & liquids contingent resources by asset (mm bbls)
Lemang 6.3 9.0 12.6 5.1 7.3 10.2 0.9 Jadestone
---------- ---------- ---------- ---------- ---------- ---------- -------- ----------
Total oil
& liquids 6.3 9.0 12.6 5.1 7.3 10.2
---------- ---------- ---------- ---------- ---------- ---------- -------- ----------
Gas contingent resources by asset (bscf)
Lemang 46.8 63.7 83.8 42.1 57.4 75.4 0.9 Jadestone
---------- ---------- ---------- ---------- ---------- ---------- -------- ----------
Total gas 46.8 63.7 83.8 42.1 57.4 75.4
---------- ---------- ---------- ---------- ---------- ---------- -------- ----------
Total contingent resources by asset (mm boe)
Lemang 14.1 19.6 26.5 12.1 16.8 22.7
---------- ---------- ---------- ---------- ---------- ---------- -------- ----------
Total 14.1 19.6 26.5 12.1 16.8 22.7
---------- ---------- ---------- ---------- ---------- ---------- -------- ----------
Source: ERCE 2021
Summary of reserves for Maari
Gross Net attributable
Proved, Proved,
(all figures Proved probable Proved probable
in mm bbls) Proved & probable & possible Proved & probable & possible Operator
======= ============ ============ ======= ============ ============ =========
Oil & liquids reserves by assets (mm bbls)
Maari 6.5 16.0 34.7 4.3 10.6 23.1 OMV(1)
======= ============ ============ ======= ============ ============ =========
Total oil &
liquids 6.5 16.0 34.7 4.3 10.6 23.1
======= ============ ============ ======= ============ ============ =========
Source: ERCE 2021
[1] Operatorship will transfer to Jadestone upon satisfaction of
regulatory consents.
Paul Blakeley, President and CEO commented:
"The internal reorganisation was a logical next step for the
Company and I look forward to closing this in April. In keeping
with our spirit of driving further efficiency across our business,
the reorganisation will streamline the corporate structure, and
along with our decision to delist from the TSXV early last year,
will provide tangible financial benefits as we continue working to
deliver enhanced returns for our shareholders.
"I'm also happy to provide an update to our reserve and resource
statements, prepared by our third-party reserves evaluator ERCE.
Following a year marked by low oil prices, and one in which we
prioritised protecting the balance sheet and managing the cost base
over investing into short-term growth, the results are very much in
line with our expectations."
____________________________
For further information, please contact:
Jadestone Energy Inc. +65 6324 0359 (Singapore)
Paul Blakeley, President and CEO +44 7392 940 495 (UK)
Dan Young, CFO ir@jadestone-energy.com
Robin Martin, Investor Relations Manager
Stifel Nicolaus Europe Limited (Nomad, +44 (0) 20 7710 7600 (UK)
Joint Broker)
Callum Stewart
Jason Grossman
Simon Mensley
Ashton Clanfield
BMO Capital Markets Limited (Joint Broker) +44 (0) 20 7236 1010 (UK)
Thomas Rider
Camarco (Public Relations Advisor) +44 (0) 203 757 4980 (UK)
Georgia Edmonds jse@camarco.co.uk
Billy Clegg
James Crothers
About Jadestone Energy
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, Indonesia and Vietnam.
The Company has a 100% operated working interest in the Stag
oilfield and in the Montara project, both offshore Australia. Both
the Stag and Montara assets include oil producing fields, with
further development and exploration potential. The Company also has
a 100% operated working interest in two gas development blocks in
Southwest Vietnam, and an operated 90% interest in the Lemang PSC,
onshore Sumatra, Indonesia, which includes the Akatara gas
field.
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 H1 2021, 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 listed on the AIM market of the London
Stock Exchange. 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 securities
legislation. 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 obtaining approvals with respect to the
Reorganisation and the timing of such approvals, results of voting
at the Meeting, and anticipated benefits of the Reorganisation,
including the extent of cost reductions and access to capital.
.
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. Whilst the Company
believes the expectations reflected herein to be reasonable in
light of the information available to them at this time, the actual
outcome may be materially different owing to factors beyond the
Company's control or within the Company's control where, for
example, the Company decides on a change of plan or strategy.
Accordingly, no reliance may be placed on the figures contained in
such forward-looking statements. 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 oil, natural gas and natural gas liquids information in this
announcement 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 Handbook (the
"COGE Handbook").
A barrel of oil equivalent ("boe") is determined by converting a
volume of natural gas to barrels using the ratios of six thousand
cubic feet ("Mcf") to one barrel. Boes may be misleading,
particularly if used in isolation. A boe conversion ratio of 6
Mcf:1 boe is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. Given that the value ratio based
on the current price of oil as compared to natural gas is
significantly different from the energy equivalency of 6:1,
utilising a conversion on a 6:1 basis may be misleading as an
indication of value.
The technical information contained in this announcement has
been prepared in accordance with the June 2018 guidelines endorsed
by the Society of Petroleum Engineers, World Petroleum Congress,
American Association of Petroleum Geologists and Society of
Petroleum Evaluation Engineers Petroleum Resource Management
System.
Henning Hoeyland of Jadestone Energy Inc., Group Subsurface
Manager with a Masters degree in Petroleum Engineering who is a
member of the Society of Petroleum Engineers and who has been
involved in the energy industry for more than 19 years, has read
and approved the technical disclosure in this regulatory
announcement.
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 which is part
of UK law by virtue of the European Union (Withdrawal) Act
2018.
Glossary
2P reserves the sum of proved and probable reserves, denotes
the best estimate scenario of reserves
bbls barrels of oil
bscf Billion standard cubic feet
Contingent resources Those quantities of petroleum estimated, as
of a given date, to be potentially recoverable
from known accumulations by application of development
projects, but which are not currently considered
to be commercially recoverable owing to one
or more contingencies.
mm bbls million barrels of oil
mm boe million barrels of oil equivalent
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