90. Jadestone Energy
Jadestone Energy (JSE) vaults into this year’s rankings courtesy of last August’s $110m placing and secondary offering, which helped the Canadian independent secure the $195m purchase of the Montara project, offshore Australia.
The addition of Montara – whose fields at last count held 28.2m barrels of proven and probable oil reserves – has lifted daily production to more than 15,000 barrels of oil per day (bopd). It’s a relatively mature asset, but management plans to double output by 2024 through further infill drilling, exploration activities, and by connecting Montara’s infrastructure to the “multiple oil and gas discoveries and previously suspended fields” in neighbouring blocks.
Last November, analysts at BMO Capital Markets forecast that the group’s balance sheet cash would exceed its market capitalisation – which stood at £161m at the time – within three years. That requires free cash flow yields to range between 30 and 50 per cent a year, which requires a lot of catalysts to come good. Hold. AN
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