Jersey Oil and Gas (LON:JOG) is an AIM listed oil and gas exploration business with a geographic focus on the UK Continental Shelf. Jersey Oil & Gas was created as a private company in 2014 and is aiming to build a diversified production focused North Sea asset portfolio, through the acquisition of non-operated working interests in multiple fields.
Jersey Oil and Gas have noted that they are funded to a level that should enable it to continue operating with its existing cash resources into 2017, the company has no existing debt and a clean balance sheet and have access to debt capital and boast £25 million of attractive tax losses. Jersey in addition to searching for producing North Sea assets have an active farm-out process underway for the Cortina blocks awarded in the 28th Licencing Round, with initial interest expressed by several parties.
Following recently opening a position in the company I have put the following questions to the CEO Mr Andrew Benitz.
Q1. Could you briefly provide the background to Jersey Oil and Gas?
Jersey Oil & Gas was created as a private company in 2014 with the North Sea as our focus and, in August last year, we completed a business combination with an AIM quoted company called Trapoil. Trapoil was then transformed into Jersey Oil & Gas with a rejuvenated strategy aiming to deliver strong returns for shareholders through the timely acquisition of non-operated North Sea production assets.
The business combination has left Jersey Oil & Gas with £25 million of attractive tax losses, no debt, no baggage and a strengthened management team ready to take advantage of the low oil price environment and competitively bid for production led acquisition targets.
Q2. Can you please briefly explain the interests Jersey Oil and Gas hold?
Jersey Oil & Gas is actively managing and de-risking our existing exploration portfolio and we are looking to potentially monetise through farm outs, asset swaps or sales. We have recently signed a sales and purchase agreement with Azinor Catalyst Limited, for example, for the farm-out of its 50% interest in Seaward Production Licence. This transaction ensures that Jersey Oil & Gas maintains exposure to the potential upside from this Licence, at no further cost to the Company. We have also begun a farm out process for the "Cortina" block which is drill ready with an attractive 300MMbbl…
