Stifel Nicolaus analyst David Round maintained a Buy rating on Jadestone Energy Inc (JSE – Research Report) today and set a price target of p70.00.
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David Round has given his Buy rating due to a combination of factors that highlight Jadestone Energy Inc’s promising outlook. The company has demonstrated a strong start to the year, delivering production slightly ahead of target despite facing challenges such as cyclone-related downtime. This resilience in operational performance underscores the company’s capability to meet or even exceed its production guidance for FY25.
Furthermore, the arrival of the jack-up rig to drill the Skua-11 well is a significant development. The successful execution of this drilling program, with an expected initial production rate of approximately 3,500 barrels of oil per day, could serve as a catalyst for the company. The Skua-11 well is anticipated to accelerate reserve recovery, with a forecast payback period of just 16 months and an impressive internal rate of return of 65%. These factors, combined with a net asset value of 70p per share, contribute to the positive outlook and justify the Buy rating.