Jadestone Energy Announces Commodity Hedge
Singapore, January 3, 2018: Jadestone Energy Inc. (TSXV: JSE) (the “Company”) announces that it has entered into a commodity hedge with BP Singapore Pte Limited to hedge a total of 350,000 bbls of crude oil production over the period January 2, 2018 to June 30, 2018 (1,944 bbls/d), using Brent ICE crude as the commodity reference price, and at a fixed price of US$64.60.
This hedged volume represents approximately 60% of the mid-point of Jadestone’s target Stag production for H2 2017 of 3,000 to 3,500 bbls/d and approximately 43% of the mid-point of Jadestone’s target total production for H2 2017 of 4,300 to 4,800 boe/d.
“Today’s announced Brent based swap gives Jadestone tremendous downside price protection on our liquids production, thereby giving us greater certainty in the returns we had envisaged when we acquired both our producing assets, Stag and Ogan Komering, in what is currently still a very volatile oil price environment. This move protects our Balance Sheet and provides greater positive cashflow certainty for the Company in 2018. Further, we still have a significant portion of liquids production unhedged, providing us substantial upside exposure in the event of a further rise in oil prices in the course of 2018,” said Paul Blakeley, Jadestone’s President and Chief Executive Officer.
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About Jadestone Energy Inc.
Jadestone Energy Inc. is a TSX-V listed oil and gas company headquartered in Singapore. 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.
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.