Jadestone Energy (JSE) has announced “H1 2022 production of 15,008 boe/d… cash balance: US$161.1 million”, with the latter comparing to $117.9 million at the end of 2021 but also that it now “has taken the decision to temporarily shut-in production from Montara”.
Quite a lot has happened since I covered Jadestone Energy (JSE) as a buy just over a month ago, and recent news has further strengthened my positive outlook on the company.
On recent 81p offer price recommendation, we noted we saw upside potential for shares in Jadestone Energy (JSE) on Montara fears reducing and operations being restored over the next few weeks. Now a “Resumption of Production Operations at Montara” announcement.
Any disruption to production is obviously a big issue for oil producers, and even more so when a company only has a small number of operations and it causes a significant impact on output.
Jadestone Energy (JSE) has announced results for the 2021 calendar year and that it still expects 2022 average production to increase to 15,500-18,500 boe/d. So what of a share price slipping to 101p in response?
Jadestone Energy (JSE) states that it “is pleased to provide its guidance outlook for 2022”, including noting that it expects to generate material incremental cash at current oil prices and premiums and may consider an increase in shareholder returns through increased dividends and/or share buy-backs later in the year. Sounds good.
This has been a very good share tip for our readers but there is more to come. Jadestone Energy (JSE) has announced that “2021 production averaged 12,545 boe/d, in line with expectations” and “cash balances at the end of the year are estimated at US$117.4 million, representing an increase of 30% year-on-year, even after the largest spending programme in the company's history”. This sounds encouraging.
Jadestone Energy (JSE) has announced that 2021 average annual production is expected to be around the midpoint of the 11,500-13,500 boe/d guidance range and that it “now expect to reap the benefits of higher production and attractive pricing, given ongoing oil price strength, our unhedged position and recent improvements in the Tapis differential”.
