It has been nice to see Jadestone Energy (JSE) finally showing a bit of strength recently, even if that has largely been down to the higher oil prices being caused the Iran war.
A reader has asked me to update my view on Jadestone Energy (JSE), a company I’ve held shares in for sometime, and where quite a bit has happened since I last looked at it – both company specific, and also in terms of oil prices.
Jadestone Energy (JSE) is an oil company which I have been covering for some time now and is one that I get asked about from time to time, in terms of whether my opinion has changed.
Jadestone Energy (JSE) is a company that myself and Pete Brailey discussed during Share Stock, and which we both hold shares.
When I saw the latest update and guidance from Jadestone Energy (JSE) I was expecting that the market might not like it and would focus on the negatives, but I wasn’t expecting it to take around an 18% hit on not a huge volume of shares traded.
As an investor in Jadestone Energy (JSE) there hasn’t been much to cheer about over the past years or so, and most times news has dropped it has been less than welcome, so it was good to see another much more positive update today with much better than expected drill results.
There was finally some more positive news for Jadestone Energy (JSE) last week about the latest problems with the floating production storage and offloading vessel at its Montara oil field.
Just as it looked like Jadestone Energy (JSE) had everything back on track after the previous issues at it Montara oil field, investors, including myself, got a nasty shock at the beginning of last week when the company encountered another problem which caused production to be halted.
The recent equity fundraise at Jadestone Energy (JSE) came as an unexpected and nasty surprise for shareholders, including myself, as I’d expected that its cash reserves and access to debt facilities would be sufficient to cover the Capex for its ongoing oil and gas field developments.
Jadestone Energy (JSE) is a company that I’ve been keen on for a few years now, due to its track record of making good acquisitions and having built the company into a decent sized oil and gas producer.
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?
