Jadestone Energy Announces Commodity Hedge for H2 2018
Singapore, January 22, 2018: Jadestone Energy Inc. (TSXV: JSE) (the “Company” or “Jadestone”) announces that it has entered into an additional commodity hedge with BP Singapore Pte Limited. Under this arrangement, the Company has agreed to hedge a total of 350,000 bbls of crude oil production over the period July 1, 2018 to December 31, 2018 (1,902 bbls/d), using Brent ICE crude as the commodity reference price, and at a fixed price of US$65.00.
This volume is in addition to the previously announced 350,000 bbls of crude oil hedged over the period January 2, 2018 to June 30, 2018, and like that agreement, represents approximately 59% of the mid-point of Jadestone’s target Stag production for H2 2017 of 3,000 to 3,500 bbls/d and approximately 42% of the mid-point of Jadestone’s target total production for H2 2017 of 4,300 to 4,800 boe/d.
“This Brent based swap provides connectivity to the previously announced hedge, and helps ensure we will achieve strong returns on our oil production throughout the full year 2018, in line with the objectives we set when we acquired our producing assets Stag and Ogan Komering,” said Paul Blakeley, Jadestone’s Chief Executive Officer. “The forward price curve for Brent oil provides a good opportunity to protect our Balance Sheet through hedging, at a time when the market is bullish on price. A little over half of our total expected oil production remains exposed to potential upside should prices trend higher over the year.”
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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.