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No, as far as I'm concerned Aim market is unregulated and openly abused with no regulation.
The London Stock Exchange does nothing to stop how some people and companies ignore the rules, but one day might pay dearly for their complacency.
Remember banks and ppi
Agree that when someone has a buy order they won't rns it until they are finished but 6 months does seem excessive.
But as usual when I hesitate about topping up the shareprice goes up, every time.
Back in Feb I had BG holding 3.48% - so increased to 4.15% mid-July, and early september 5%+; and now perhaps just under 6%?
I assume that it was not an error that BG's holding wasn't notified to the market on 2nd September. Whilst undisclosed, this would allow BG to continue to buy without alerting the market. (Too, I think there is some regulation that if a buy order is put in to be fulfilled over a certain period, then disclosure is not necessary until the full order is complete?). Over the years I have become quite sceptical as to how the AIM market operates. Is this unfair comment?
Great to see Ballie Gifford buying into Jadestone .
Happy dont see how they had over 4% as TR1 states previous holding was N/A, which I assume was <3%.
Anyway very encouraging but unsure why it wasn't reported on 2nd sept.
Also noted that there were some chunky buys this afternoon which isn't surprising at this price, maybe more tr1's to come!
Some oilers in deep trouble but not Jadestone, stable, profitable, extremely well managed,more cash than debt only about 25m debt, great compared to others, Actively adding pursuing more acquisitions.
A few oilers are being dragged down due to low oil prices meaning they cant pay their debt but not Jadestone and that is very important.
TheSnowball think operating cost are $23.27 bbl according to 1/2 year results which is excellent, hope that helps.
From my notes I had BG as holding 4.13% on July 13th 2020.
Note the threshold was crossed on the 1st September; and issuer notified on the 2nd September.
Since 1st September we have had a large seller; but these have continued to be mopped up.
My guess is that BG has been buying more since 1st September.
Do we know what JSE cost per barrel is for production?
Looks like a few big buys in the last hour.
Well this is all getting a bit silly. Company is in a solid position. Time to top up then if it continues down
Added a few more today, good medium term hold
Once I free more funds will add again
Although I suspect sp may drift a little more it doesn't matter,
Thanks Sparrow, I did the research on this company ages ago and was really pleased with what I found.
I am going to build up some more cash and see how we look at the end of September for an investment, thanks for your comments.
Kalum - I have no spare cash; if I had, would have piled in today. Looking at chart, imo unlikely to go below 55p. People were happy to pay 75p a month ago; I bought a lot around 65p. The reason this is down is we have a big seller; but it seems to be being matched now by buyers. Quality company; therefore you might not buy at the bottom, but I would still regard it as a good investment over a 6 month+ time period, one that should outperform and outsee the 'macro' worries of further Covid-nonsense, imo. Of course, your call (and DYOR).
Really like the look of this company, has been on my radar for about 3 months now.
Do you think it would be a good time to get on? Or do you think I should wait to see if there will be another lockdown as may hit the oil industry hard again?
Either way I am getting on just not sure whether I should hold off until end of Sep,
Totally agree with previous posters.
Shareprice reaction disappointing , but encouraging £90k buyer taking advantage.
This is such a well run company with great management compared to quite a few other oil companies I could mention.
Starting to pay a dividend as well.
Excellent results and maiden dividend announced, cash positive $78m with $25m debt to be repaid in 2021, the outlook is very positive going forwards the only downside is that the hedges they have in place come to an end shortly.
However all oil is not equal and JSE's product is low sulphur which sells at premium to Brent prices and will be in demand due to its use in shipping.
Solid experienced management who have a plan and know how to build a successful oil company, being in Australia is close to the demand center of Asia which shouldn't be overlooked.
Good luck to all invested here, even though we are in the midst of a slight pullback, it seems that market can't always recognise a good company when it sees one.
Solid, creditable performance - very reliable company.
This caught my eye: ' ... Progress on both the Vietnam Nam Du/U Minh and Indonesia Lemang gas developments provide us optionality in pushing forwards with final investment decisions next year, with more detail on this to come as part of 2021 guidance. These decisions will always be balanced by market conditions, as will our approach to inorganic activity, where we see a number of very material opportunities emerging across the region for 2021. ...'
I had expected little progress in Vietnam, but this seems a mistaken view.
This Thursday to be exact
Results due mid Sept along with notice of maiden interim dividend which will be interesting and should give shareprice a boost.
As we come to the end of the Montara Oil Price Hedge on the 30th September, Jadestone shareholders should raise a glass in hearty thanks to the investment bank arms of the Commonwealth Bank of Australia and Société Générale for insisting that the underwritten secured reserve-based loan facility of US$120 million to facilitate the Montara Acquisition, must include the hedging of 50% of Montara's expected production for 2 years post completion of the acquisition.
And to the International Maritime Organisation(IMO) for taking the decision to move the global shipping fleet away from burning the cheap high sulphur fuel oil its used for the past 70 years to much more expensive low sulphur fuel oil.
Jadestone's management and shareholders were incredibly fortunate with the timing of the completion of the Montara deal and securing of the oil price hedge, since it coincided perfectly with Brent very briefly spiking to its highest price since H2/2014, enabling circa 5,500 bopd to be hedged at an average of $78.5/bbl for Q4/2018, 5,000 bopd at $72/bbl for 2019 and 4,500 bopd at $68.5bbl for the first three quarters of 2020.
The estimated additional benefit to JSE of the oil price hedge and the IMO 2020 Oil Sales Price Premium to Brent since Sept 2018:
$9.20m - 2018 - Average Brent Price: $64
$32.0m - 2019 - Average Brent Price: $64
$57.2m - 2020 - Average Brent Price: $40
$98.4m - Total during the life of the Oil Price Hedge
The 'carbon runoff' in the emerging nations of SE Asia, China and India that contain nearly 80% of the worlds population, and which have bolted on a population increase equivalent to the entire population of the West in less than 15 years, is still majoring on coal to produce electricity, never mind going "green" by upgrading to oil and gas.
It took the West 50 years to produce more electricity from gas, oil, nuclear, hydro and renewables combined, than coal.
Despite China annually importing more oil than the entire annual production of Saudi Arabia and being the world's second largest LNG importer, it has a per capita oil and gas consumption around one eighth and one tenth respectively of the West according to latest data, and still generates 60% of its electricity from coal( which is forecast to drop only to a third by 2050) - and China is LEADING most of the emerging Nations in the switch to oil, gas and to a much lesser extent renewable energy.
Anyone predicting the imminent demise of oil and gas consumption globally, and especially in SE Asia, China and India should visit these emerging Nations to disabuse themselves of that notion, mostly pedalled by grandstanding, self serving western politicians disingenuously acting to embellish their "green credentials'.
Another sensible decision from management, and 20% savings to boot, more flexibility in how often and when the lifts are taken, and as stated the tankers to be used are of the latest design.
Excellent posts MountTeide always full of great info.
Thanks, MT. Always great information.
[And a big thank you, generally. My main positions are TXP and JSE - although not on ADVFN, I follow your information and reasoning closely.]
At the very recent $46.5 Brent, I estimate Jadestone is currently achieving an average realised price of $63.7/bbl for its ENTIRE production - a $17.2/bbl premium to Brent.
This will generate estimated operating cash flow of circa $43.7/bbl; (inclusive of the $11.0/bbl and $6.2/bbl IMO 2020 premiums to Brent for Stag and Montara production respectively(last liftings), the Montara Q3 oil price hedge, and revised 2020 OPEX guidance of $20.0/bbl.
The Montara premium to Brent plus the 4,500 bopd oil price hedge means this element of the field's production is currently realising an astonishing $74.7/bbl; while the Stag production should be generating circa $54.0/bbl, and the remainder of the Montara production $52.5/bbl.
Current estimated realised prices/bbl for Montara and Stag production at $46.5/bbl Brent:
$74.7 - Montara - 4,500 bopd - after adj for IMO 2020 Premium and Oil Hedge
$57.5 - Stag - Est 3,000 bopd - after adj for IMO 2020 Premium
$52.0 - Montara - Est 4,500 bopd - after adj for IMO 2020 Premium
$46.5 - Brent
$20.0 - Revised 2020 OPEX Guidance
In addition, the Maari oil field's IMO 2020 Sales Premium to Brent is likely realising a circa $3-4/bbl premium, up from $2/bbl in H2/2019.
Across APAC - by far globally, the region with the highest demand and fastest growing consumption of low sulphur fuel oil - VLSFO is currently trading at a circa $15.0/bbl premium to Brent.
According to research published by Lloyds List, demand for VLSFO is expected to grow by circa 30% (1.0 million bopd) during this decade in line with the forecast growth of the global shipping fleet - which has averaged 2.5% annual growth(in tonnage terms) since 2000.
Oil Sales price premium to Brent for the last liftings of Montara and Stag production were $11.2 and $6.0 per barrel respectively.
APAC Average Fuel Oil Pricing/bbl - S&P Global Platts
$79 - MGO
$60 - VLSFO
$45 - Brent
$44 - HSFO
$41 - WTI
+$15 - VLSFO/Brent Spread
+$16 - VLSFO/HSFO Spread
Australian heavy sweet crude is currently attracting a $10-$12/bbl premium to Brent, indicating current tender sales prices in the $55-$57/bbl range.
As a result of the Montara oil hedge JSE will generate circa $74.5/bbl for around 45% of its Montara light sweet crude production from 1st Jan to 30th September 2020 and around $6/bbl above Brent for the remainder; with an average OPEX of circa $15/bb for the Montara production.
The use of modern double hulled 'shuttle' tankers to replace the FPSO is an interesting development.
'These arrangements are expected to realise annual savings of approximately 20% over the current FSO operation.'
The FSO will be responsible for the overwhelming majority of the current field OPEX - so, I would estimate this new offtake arrangement should materially reduce the annual Stag OPEX, probably into the $21-$24/bbl range at production of circa 3,000 to 3,500 bopd, from the current $25.0-$28.0 bopd range.
The size of shuttle tankers used should allow JSE to continue selling oil from the Stag field in quantities that generate the highest tender offers from the marine fuel industry buyers, by minimising the transportation cost per barrel to the SE Asian marine fuel hubs.
Current hedges I believe expire at the end of September. I'd be surprised if they replace any hedges at the moment with the oil price still relatively low and, in many cases, the forecast for oil prices to recover in 2021 and, hopefully beyond. Hedging now could result in them receiving significantly less than the market price for their oil. JSE's production should continue to benefit from a significant premium to Brent when sold due to the demand for the type of low sulphur oil their fields hold.
That a great at question. If I remember correctly (I think it was around the time that COVID first hit and the oil price slumped) the company mentioned they had already hedged or sold forward a certain amount of production at a fixed (decent) price but for a fixed period. I’m not sure if that has run out yet and not , if it has, if they have repeated that action. I really like they way the management operate and I would expect they have selected the best options. IT would be nice to sit down with them and have a chat.
Does this new method mean that we not only make 20% cost savings, but that offtake is in smaller quantities but more frequent, and thus there is more flexibility in sales price? Anyone have knowledge on this?