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Jadestone Energy Reports Results for the Year Ended December 31, 2019 - Jadestone Energy

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Jadestone Energy Reports Results for the Year Ended December 31, 2019

Record US$325 million Revenue and US$177 million Operating Cash Generated

April 23, 2020—Singapore: Jadestone Energy Inc. (AIM:JSE) (“Jadestone” or the “Company”), an independent oil and gas production company focused on the Asia Pacific region, reported today its consolidated audited financial statements (the “Financial Statements”), as at and for the year ended December 31, 2019.

 

Financial highlights

● Jadestone reports record annual production, revenue, EBITDAX, operating cashflow, profit before tax, and profit after tax, with the benefit of a full year contribution from Montara;

● 2019 full year net revenue of US$325.4 million, a nearly three-fold increase over 2018 of US$113.4 million;

● Liftings for the full year were 4,496.2 mbbls, compared to 1,683.1 mbbls in 2018, reflecting a full year of Montara production of 3,826.1 mbbls;

● Average price realisations for 2019 were US$69.07/bbl, compared to US$69.39/boe in 2018, with the increase in pricing premia for each of Stag and Montara offsetting the year-on-year reduction in Brent;

● Full year 2019 adjusted EBITDAX of US$187.51 million, which compares to US$10.21 million in 2018;

● A more than 20% reduction in unit operating costs, generating an average cash cost per barrel for 2019 of US$22.85/bbl, before workovers, and compared to US$28.72/boe in 2018;

● 2019 full year positive net cash generated from operations of US$176.7 million, before changes in working capital, tax and interest, compared to a US$0.3 million net use of cash in 2018;

● Annual pre-tax profit of US$73.3 million, compared to a pre-tax loss in 2018 of US$21.5 million;

● Full year 2019 profit after tax of US$40.5 million, compared to a net loss of US$31.0 million in 2018;

● Gross debt outstanding reduced to US$49.12 million by year-end, compared to US$101.8 million at December 2018. Following the March 2020 scheduled repayment of US$12.9 million, the principal balance outstanding is now US$37.32million;

● Gross cash and bank balances of US$89.43 million at year-end, resulting in a net cash position of US$40.32 As at March 31, 2020, gross cash and bank balances had grown to US$109.42 million, or a net cash position of US$72.12 million; and

● On November 18, 2019, the Company announced the acquisition of an operated 69% interest in the Maari Project, shallow water offshore New Zealand, for a total headline cash consideration of US$50.0 million.

1 EBITDAX is a non-GAAP financial measure which does not have a standardised meaning prescribed by IFRS.  This non-GAAP financial measure is included because management uses this information to analyse financial performance, efficiency and liquidity and it may be useful to investors on the same basis. EBITDAX is a non-GAAP measure which should not be considered an alternative to, or more meaningful than, “net earnings (loss)” as determined in accordance with IFRS, as an indicator of financial performance.  EBITDAX equals net earnings (loss) plus financial expenses (income), provisions for (recovery of) income taxes, and depletion, depreciation and amortisation and exploration expense.  Because non-GAAP financial measures do not have a standardised meaning prescribed by IFRS, they are unlikely to be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
2
Gross debt and net debt/cash are non-GAAP measures which do not have a standardised meaning prescribed by IFRS.  These measures are included because management uses this information to analyse the liquidity and financial position of the group and it may be useful to investors on the same basis.  Gross debt and net debt/cash are non-GAAP measures and should not be considered an alternative to, or more meaningful than ‘Net increase in cash and cash equivalents’ as determined in accordance with IFRS, as an indicator of liquidity and financial performance.  Gross debt is defined as long and short term interest bearing debt, and excludes derivatives.  Net debt/cash is defined as cash and cash equivalents including the Montara assets’ minimum working capital cash balance of US$15 million required to be maintained under the conditions of the reserve based lending facility and restricted cash of US$13.5 million under the debt service reserve account.  The restricted cash excludes the US$10 million deposited in support of a bank guarantee to a key supplier of the Stag FSO.  Because non-GAAP financial measures do not have a standardised meaning prescribed by IFRS, they are unlikely to be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
3 Excludes a US$10.0 million deposit in support of a bank guarantee

 

Operational highlights

● Continued safe operations at all assets, with no significant recordable personnel or environmental incidents;

● Full year average production of 13,531 bbls/d, reflecting a full year of operations from the Montara asset, in addition to the Stag field, a more than three-fold increase on average production in 2018 of 4,057 boe/d;

● All outstanding regulatory deficiencies at Montara, which were inherited when the asset was acquired, have been corrected, and we have operated for the remainder of the year without any regulatory enforcement notices;

● Successfully conducted the first phase of major investments on Montara, including a subsea umbilical replacement, and innovative riserless light well intervention (“RLWI”) programme, to restore gas lift and access additional reservoir sands;

● Drilled the first infill well on Stag in six years, which successfully came on production at 1,400 bbls/d in line with pre-drill expectations, producing throughout the year as planned; and

● 2P reserves at December 31, 2019 of 41.8 mm bbls comprising both Stag and Montara, a decrease of 1.0 mm bbls from December 31, 2018. Inclusive of Maari’s 2P reserves (as evaluated at the time of acquisition, net of planned 2019 production) Jadestone’s 2P reserves have effectively increased 26% year-on-year to 54.0 mm bbls.

 

Outlook

● The Company’s maiden dividend payment to shareholders is on track for later in 2020, with a targeted range of US$7.5–12.5 million;

● To further insulate the balance sheet in the wake of the COVID-19 pandemic, 2020 capital spending has been reduced by around 80% from US$160–190 million to US$30–35 million;

● Ongoing downside oil price protection through the Company’s capped swap, which provides a floor price of US$68.45/bbl (Dated Brent) through to September 30, 2020, on 50% of Montara planned production, excluding incremental oil price premia;

● Project Clover, Jadestone’s current Company-wide cost efficiency and capital saving programme, has to date identified incremental savings in 2020 of US$3-4/bbl that can be realised going forwards;

● The Company’s operating cashflow break even oil price for the remainder of 2020 is estimated to have been reduced to US$20/bbl. Unlevered free cashflow break even oil price for the same period is estimated to be below US$27/bbl;

● Montara and Stag infill drilling has been deferred to coincide with a strengthening oil price environment, together with the potential to lock-in lower service costs next year;

● 2020 production guidance of 12,000 – 14,000 bbls/d for the year, adjusted to reflect a re-scheduling of Australia’s infill wells into 2021 to maximise returns;

● The Company has elected to defer entering into the mandated amended and enlarged reserves-based loan, given the reduced capital programme, with all existing debt repaid within 12 months based on current schedule;

● AU$60.0 million locked in via forward exchange contracts at an AU$/US$ exchange rate of 0.6344, saving ~US$4.0 million versus the assumed costs in the 2020 work plan & budget;

● Growth through the addition of an operated 69% interest in the Maari project, offshore New Zealand, with closing still expected in the second half of 2020; and

● Ongoing pursuit of inorganic growth opportunities.

Paul Blakeley, President and CEO commented:

“I’m very pleased to report a transformational year for Jadestone in 2019, though it may well be overshadowed by the extraordinary circumstances that the world finds itself in today.  The global economy has been dealt a huge blow by the COVID-19 pandemic, with significant oil demand destruction, exacerbated by OPEC+ disarray, and a lack of storage, such that we envisage a prolonged impact on oil pricing for which we need to be prepared.  So, while I would like to reinforce how the Jadestone business has moved forward with a threefold increase in revenue to US$325 million, as well as US$177  million of operating cashflow, it’s also important to emphasize that we have elected to defer 80% of our capital spend this year, in order to protect the balance sheet.  We recently announced the deferral of the Nam Du/U Minh gas project in Vietnam by 12 months, and yesterday we confirmed that the two infill wells which were to be drilled this year in Australia will now be pushed back to 2021.

“In 2019, our Stag and Montara producing fields delivered an average increase in uptime performance of 12% to 80% overall, and operating costs came down by 20% in the same period to US$22.85/bbl.  This was a result of a number of cost reduction and efficiency initiatives, with more to come in response to the current environment.  In November last year we also announced the acquisition of the Maari project in New Zealand.  So, while we balance prudence at this challenging time, with deferred drilling and a resulting downward guidance of 10% to production volumes this year, this is balanced by closing the Maari acquisition which will provide a 25% production increase next year.

“2019 also benefited from a threefold increase in crude oil sales, due largely to a full year of Montara production, enhanced by half of the produced volume being sold at US$72/bbl, and with strong premiums on top.  This hedging programme will continue through to September this year and will be a major positive feature in our ability to generate positive free cash even at today’s depressed prices down to US$20/bbl.

“Jadestone has acted quickly in response to the challenges imposed by the COVID-19 pandemic and put in place comprehensive procedures to ensure our operations remain unaffected, and can continue safely and efficiently.  We have adjusted how we work both onshore and offshore to minimise the risk of infection and to protect the wellbeing of our people.  Contingency plans for safe crew transfer, local housing for self-quarantine, and isolation and evacuation procedures are all in place.

“On a positive note, I would add that we will shortly publish a full annual report, and our first sustainability report which is part of our commitment to provide more information and transparency in our business.  We will set comprehensive targets towards a sustainable future, which will be measured in parallel with operational and financial objectives, and will become a part of our core business ethos.  This is important because we intend to be here for the long term, with a strategy that fits the times, and we are well positioned to benefit from the current challenging environment with both organic and inorganic opportunities.  We have a strong balance sheet, which has grown significantly with gross cash at US$120 million at the end of March 2020, including a US$10 million bank guarantee, with remaining debt of US$37 million.

“Finally, due to its financial strength, the Company will pay its first dividend later this year as promised, will continue to work towards closing the Maari acquisition later in the second half of the year, and will also remain opportunistic for inorganic growth should the right opportunities emerge.”  

 

Operations update

Jadestone reported its first full year of results for the Montara Assets in 2019, following completion of the acquisition in late September 2018.  Montara production averaged 10,483 bbls/d for the full year 2019, compared to 7,625 bbls/d for the post acquisition period September 28, 2018 to October 31, 2018, prior to the voluntary shut-in during November and December 2018, to address an inspection and maintenance backlog.

There were a total of six Montara liftings in 2019, resulting in total sales of 3,577,204 bbls, compared to the year ended December 31, 2018 which saw just one Montara lifting for total sales of 451,291 bbls.

During 2019, Jadestone conducted its first major investments on the Montara assets, including successfully installing replacement subsea umbilical cables.  The umbilical cables are an essential part of the control system providing electrical power and control signals to the subsea well-heads, thereby enhancing long-term reliability of production from the subsea wells.

In addition, the Company conducted the innovative RLWI campaign at the Montara complex, undertaking a highly engineered scope of work to restore gas-lift to subsea wells, and to access additional reservoir sands.  The RLWI programme achieved its objectives, completing the work at a substantially lower cost than would have been incurred using a more conventional jack-up drilling unit.

Production from the Stag oilfield averaged 3,049 bbls/d for the full year ended December 31, 2019, compared to 2,799 bbls/d for the year ended December 31, 2018.  The increase was due to the Stag 49H infill well, which was drilled in May 2019 and initially produced at approximately 1,400 bbls/d upon completion, and thereafter at a rate averaging 838 bbls/d between May 22, to December 31, 2019.  The additional production was partly offset by downtime associated with cyclones in 2019, and delays to workovers during the period that the 49H infill well was being drilled.

There were four Stag liftings in 2019, resulting in total sales of 918,961 bbls, compared to the year ended December 31, 2018 which saw five liftings and total sales of 1,031,763 bbls.

In Vietnam, the Company made substantial progress toward commercialising its Nam Du and U Minh gas fields, including completion of front end engineering and design work, selecting major suppliers, signing a heads of agreement in respect of key gas sales commercial terms, and submitting a field development plan (“FDP”) in respect of the development.  While the Company remains committed to developing the fields, in the absence of receipt of Vietnamese Government approvals of the FDP, and in light of prevailing market conditions due to COVID-19, the Company opted to delay any further work, and anticipates no further major spending on the project in 2020.

 

COVID-19 operational response

Jadestone has undertaken a thorough assessment of all aspects of its operations, and the specific risks and challenges posed by the COVID-19 pandemic.  As an overarching principle, the Company will comply with local and international recommendations protecting the wellbeing of its people, and in turn to minimise the impact on its operations.

The Company has adjusted its offshore work rotation to reduce travel time and is providing local accommodation for personnel to self-isolate following cross-border travel in Australia.  Health and wellness screening has been enhanced for all operational personnel, including pre-duty temperature checks and staff questionnaires.  Offshore work plans have been modified to defer non-essential activity wherever possible, such that manning can be kept to a minimum in order to provide crew flexibility and additional cover in the event of any infection.   Isolation and evacuation procedures are in place.

To this point, the Company has not experienced any disruptions to its offshore operations due to the COVID-19 pandemic.  Jadestone is in frequent discussions with the relevant Australian Government and regulatory authorities and continues to execute key projects to enhance efficiency while operating within the requirements of its safety cases.  As the public health response to COVID-19 remains fluid, Jadestone has designated a pandemic manager at each location, to ensure a coordinated and principled response to evolving business requirements.

Jadestone recognises that ongoing safe operations rely on a working supply chain to ensure provision of critical equipment, consumables, and services.  The Company is maintaining a rolling six-month work plan for all offshore work and believes it is carrying a sufficient local inventory of critical spares to safeguard operations.  However, in light of the potential for unforeseen disruptions to the supply chain, the Company has implemented additional new measures to enhance logistics support and transportation, including closer cooperation with nearby operators.

Jadestone has also implemented a travel ban, and work-from-home routines are in place, as an extension to the Company’s standard operating model which relies on a distributed workforce.  In addition, the Company has enhanced its support for personnel working from home to ensure efficient online collaboration, communications, and that decision-making can continue, as seamlessly as possible.

 

Reserves

An independent third-party reserves evaluator, ERCE, has audited Jadestone’s Montara reserves and reviewed the Stag reserves, as of December 31, 2019 in a report dated April 23, 2020.  As of December 31, 2019, the Company had proved oil reserves of 25.1 mm bbls, a decrease of 0.2 mm bbls from December 31, 2018.  On a 2P basis, the Company had 41.8 mm bbls of oil reserves at December 31, 2019, decreased by 1.0 mm bbls from December 31, 2018.  The difference in reserves reflects the impact of oil production during the year largely offset by reserves upgrades due to strong reservoir performance, as well as including technical revisions relating to an additional future infill well being included in the Company’s future production profile.

The Company’s reserves value, based on after income tax values of future net revenues discounted at 10% were evaluated to be US$253 million for proved reserves, and US$549 million on a 2P basis, as of December 31, 2019.

The Company’s Statement of Reserves Data and Other Oil and Gas Information for the fiscal year ended December 31, 2019 is available at www.sedar.com.

 

Financial update

Revenue for the year was US$325.4 million, compared to US$113.4 million in 2018.  The variance of US$212.0 million was predominately due to an increase in sales volumes, to 4,496.2 mbbls in calendar 2019, compared to 1,683.1 mboes in calendar 2018.

Revenue for Q4 2019 was US$91.2 million, compared to US$45.0 million for Q4 2018, or an increase of US$46.2 million, predominately due to higher liftings in the quarter of 1,266.3 mbbls, compared to 657.2 mbbls in Q4 2018.

Full year production costs for 2019 were US$119.9 million, compared to US$90.9 million in the year ended December 31, 2018.  The variance of US$29.0 million was predominately due to an increase in Montara’s production costs by US$41.7 million, due to a full calendar year of ownership in 2019, compared to the period September 28, 2018 to December 31, 2018, and partly offset by a decrease in Stag’s production costs of US$10.1 million, in part due to the adoption of IFRS16 relating to treatment of leases, in addition to movements in closing inventory.

On a per barrel basis, and excluding workovers, but including lease costs related to operations, this results in full year 2019 costs of US$22.85/bbl, compared to US$28.72/boe for the full year 2018.

Production costs for Q4 2019 were US$25.9 million, compared to US$50.6 million in Q4 2018, with the comparable period abnormally high partly due to repairs and maintenance incurred during the Montara shut-down between November to December 2018, leases recognised in production costs prior to the adoption of IFRS16 on January 1, 2019, and crude inventory movements.

On a per barrel basis, and excluding workovers, this results in Q4 2019 unit opex of US$20.26/bbl, compared to US$28.94/bbl in Q4 2018.

For the full year, the Company reports adjusted positive EBITDAX of US$187.5 million, compared to US$10.2 million for 2018, demonstrating how transformative 2019 was in terms of cash generation.  Jadestone generated adjusted positive EBITDAX of US$59.9 million for Q4 2019, compared to an EBITDAX loss of US$1.7 million for the same quarter a year ago.

For the full year, the Company generated positive operating cash flows before movements in working capital, interest and taxes of US$176.7 million, compared to a use of US$0.3 million in the year ended December 31, 2018.  In Q4 2019, the Company generated positive operating cash flow of US$58.0 million, compared to a use of cash of US$6.2 million in Q4 2018.

Full year 2019 unadjusted profit before tax was US$73.3 million, compared to a net loss before tax of US$21.5 million in 2018.  Q4 2019 profit before tax was US$27.1 million, compared to a loss of US$4.9 million in the quarter ending December 31, 2018.

2019 profit after tax was US$40.5 million, compared to a loss in the prior year of US$31.0 million.  Net profit after tax for Q4 2019 was US$10.4 million, compared to a loss of US$6.6 million for Q4 2018, predominately due to the shut in of Montara during November and December 2018, compared to a full quarter’s results in 2019.

At year end, the Company had US$89.4 million of cash, and a further US$10.0 million of cash in support of a bank guarantee.  With gross debt outstanding of US$49.1 million, this translates to a total net cash balance of US$40.31 million, and compares to total net debt of US$30.2 million at December 31, 2018.

By the end of March 2020, total outstanding interest bearing debt had fallen to US$37.3 million versus total cash of US$109.4 million, again excluding the US$10.0 million cash in support of a bank guarantee, resulting in a net cash balance of US$72.1 million.

The Company’s existing capped swap provides robust support for ongoing cash generation establishing, as it does, a floor benchmark crude oil price of US$68.45/bbl for approximately one third of the Company’s production through to September 30, 2020, and excluding incremental oil price premia.

1 Gross debt and net debt/cash are non-GAAP measures which do not have a standardised meaning prescribed by IFRS.  These measures are included because management uses this information to analyse the liquidity and financial position of the group and it may be useful to investors on the same basis.  Gross debt and net debt/cash are non-GAAP measures and should not be considered an alternative to, or more meaningful than ‘Net increase in cash and cash equivalents’ as determined in accordance with IFRS, as an indicator of liquidity and financial performance.  Gross debt is defined as long and short term interest bearing debt, and excludes derivatives.  Net debt/cash is defined as cash and cash equivalents including the Montara assets’ minimum working capital cash balance of US$15 million required to be maintained under the conditions of the reserve based lending facility and restricted cash of US$13.5 million under the debt service reserve account.  The restricted cash excludes the US$10 million deposited in support of a bank guarantee to a key supplier of the Stag FSO.  Because non-GAAP financial measures do not have a standardised meaning prescribed by IFRS, they are unlikely to be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

 

Selected financial information

The following 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 December 31, 2019.

Quarterly comparison Dec 2019 quarter Dec 2018 quarter Change (%)
Production, mbbls 1,352.6 479.7 181.9%
Sales, mbbls 1,266.3 657.2 92.7%
Avg realised liquids price1, US$/bbl 69.24 67.51 2.6%
Sales revenue1, US$ million 91.2 45.0 102.7%
Capital expenditure2, US$ million 5.1 7.6 (32.9)%
Quarterly comparison Dec 2019 quarter Sep 2019 quarter Change (%)
Production, mbbls 1,352.6 1,199.3 12.8%
Sales, mbbls 1,266.3 891.6 42.0%
Avg realised liquids price1, US$/bbl 69.24 65.36 5.9%
Sales revenue1, US$ million 91.2 62.5 45.9%
Capital expenditure2, US$ million 5.1 20.9 (75.5)%
Yearly comparison Year to Dec 2019 Year to Dec 2018 Change (%)
Production, mboe3 4,938.9 1,480.8 233.5%
Sales, mboe3 4,496.2 1,683.1 167.1%
Avg realised liquids price1, US$/boe3 69.07 69.39 (0.5%)
Sales revenue1, US$ million 325.4 113.4 186.9%
Capital expenditure2, US$ million 57.2 10.0 470.2%
1 Revenue has been restated from gross to net after deducting royalties, but including the effective gain on hedging contracts
2 Payment for oil and gas property, plant and equipment and intangible exploration assets.  In 2019 excludes the RLWI/major spend elements that are reported under opex.  Also excludes acquisition related capital expenditure
3 Production, sales and average realised prices are expressed on a barrels of oil equivalent basis as the underlying data includes gas production from Ogan Komering for the prevailing period based on Jadestone’s 50% participating interest up until May 19, 2018

 

Conference call and webcast

The management team will host an investor and analyst conference call at 4:00 p.m. (Singapore), 9:00 a.m. (London), and 4:00 a.m. (Toronto) today, Thursday, April 23, 2020, including a question and answer session.

The live webcast of the presentation will be available at the below webcast link.  Dial-in details are provided below.  Please register approximately 15 minutes prior to the start of the call.  The results for the period ended December 31, 2019 will be available on the Company’s website at: www.jadestone-energy.com/investor-relations/.

 

Webcast link: https://produceredition.webcasts.com/starthere.jsp?ei=1304879&tp_key=4e7f200c5f
Event conference title: Jadestone Energy Inc. – Fourth Quarter Results
Start time: 4:00 p.m. (Singapore), 9:00 a.m. (London), 4:00 a.m. (Toronto)
Date: Thursday, April 23, 2020
Conference ID: 55792013

 

Country Dial-In Numbers
Australia 1800076068
Canada (Toronto) 416 764 8609
Canada (Toll free) 888 390 0605
France 0800916834
Germany 08007240293
Germany (Mobile) 08007240293
Hong Kong 800962712
Indonesia 0078030208221
Ireland 1800939111
Ireland (Mobile) 1800939111
Japan 006633812569
Malaysia 1800817426
New Zealand 0800453421
Singapore 8001013217
Switzerland 0800312635
Switzerland (Mobile) 0800312635
United Kingdom 08006522435
United States (Toll free) 888 390 0605

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

 

— 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, Joint Broker) +44 (0) 20 7710 7600 (UK)
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 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 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 the Company’s intent to defer its Australia infill drilling campaign into 2021, expected reductions to capital spending, 2020 average production, 2021 production growth and the timing and payment of a dividend.

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 technical information contained in this announcement has been prepared in accordance with the March 2007 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., a Subsurface Manager with a Masters degree in Petroleum Engineering, 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, and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.  Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

Glossary

2P reserves      the sum of proved and probable reserves, denotes the best estimate scenario of reserves
bbls                  barrels of oil
bbls/d               barrels of oil per day
boe                   barrels of oil equivalent
boe/d                barrels of oil equivalent per day
EBITDAX       earnings before interest, tax, depreciation, amortisation and exploration expenses
mbbl                thousands of barrels of oil
mboe                thousands of barrels of oil equivalent
mm bbls           millions of barrels of oil

 

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