REG - Jersey Oil & Gas PLC - Corporate Update

Jersey Oil and GasAnnouncement

29/01/2024 07:00

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RNS Number : 1330B  Jersey Oil and Gas PLC  29 January 2024

29 January 2024

 

Jersey Oil and Gas plc

("Jersey Oil & Gas", "JOG" or the "Company")

 

Corporate Update

 

Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company
‎focused on the UK Continental Shelf region of the North Sea, is pleased to
provide a corporate update following the successful delivery of its stated
farm-out strategy during 2023.  A new corporate presentation is also
available on the Company's website.

 

Highlights & Outlook:

§ Delivering on strategy: Greater Buchan Area ("GBA") farm-outs delivered in
2023, enabling the Company to maintain a material 20% GBA working interest and
receive certain cash payments alongside Buchan redevelopment funding

§ Strong industry partners: endorsement and funding from two major UK North
Sea operators, NEO Energy (Operator) and Serica Energy, the fifth and tenth
largest producers in the UK North Sea, respectively

§ Fully funded: the farm-out transactions provide JOG with a full carry on
the expenditure ahead of Buchan project sanction and the budgeted development
costs included in the approved Field Development Plan ("FDP")

§ Substantial value creation: potential mid case core net asset value of over
$250 million based on the draft Buchan FDP submission at $70/bbl oil (inflated
at 3% per annum)

§ High-quality development: building a long-life, low carbon production hub
to redevelop the Buchan field via the redeployment of the "Western Isles"
floating production, storage and offloading ("FPSO") vessel, which will be
made electrification-ready in anticipation of a future connection to one of
the planned nearby INTOG offshore floating wind developments

§ Material resources: the Buchan redevelopment project unlocks gross
resources of 70 million barrels of oil equivalent, with peak production of
approximately 35,000 barrels of oil equivalent per day

§ Buchan advancing: good progress being made on the work required ahead of
project sanction and regulatory approval targeted for the second half of 2024,
targeting first production in late 2026 - the FPSO has been secured, the
Environmental Statement submitted and the draft FDP issued to the North Sea
Transition Authority

§ Strategic priorities: delivery of Buchan redevelopment sanction and
leveraging the team's strengths to maximise shareholder value

§ Agile business: 'right-sized' organisation, with cash running costs reduced
to under £3 million per annum - small, focused team with an innovative
business culture

§ Cash: £10 million cash at year-end 2023, with further cash receipts
totalling approximately £21 million scheduled following completion of the
Serica Energy farm-out in Q1-2024 and FDP approval expected later in the year

 

 

Andrew Benitz, CEO of Jersey Oil & Gas, commented:

"2023 was a watershed year for the Company.  We delivered on our key
strategic objectives - completing the GBA farm-out process and securing a
fully funded, material 20% position in the Buchan redevelopment.  Our
partners, NEO Energy and Serica Energy, are hugely competent UK North Sea
operators and we are delighted to be working alongside them on taking the
Buchan project forward.  With the draft Field Development Plan now submitted,
we are well on the way to obtaining regulatory approval later this year and
achieving the target of first production in late 2026.  As a result of the
2023 transactions, JOG's value and investment proposition has been
transformed.  The value of the business is firmly underpinned, with the
planned FPSO development solution delivering robust economics and providing
the route to full monetisation of the GBA portfolio."

 

 

Corporate Presentation

The updated corporate presentation can be accessed on the Company's website at
the following location:
https://www.jerseyoilandgas.com/investors/presentations/
(https://www.jerseyoilandgas.com/investors/presentations/)

 

Enquiries:

 Jersey Oil and Gas plc             Andrew Benitz        c/o Camarco:

                                                         020 3757 4980

 Strand Hanson Limited              James Harris         Tel: 020 7409 3494

                                    Matthew Chandler

                                    James Bellman

 Zeus Capital Limited               Simon Johnson        Tel: 020 3829 5000

 Cavendish Capital Markets Limited  Neil McDonald        Tel: 020 7220 0500

                                    Leif Powis

 Camarco                            Billy Clegg          Tel: 020 3757 4980

                                    Rebecca Waterworth

- Ends -

 

Notes to Editors:

Jersey Oil & Gas is a UK E&P company focused on building an upstream
oil and gas business in the North Sea. The Company currently holds a 50%
interest in each of licences P2498 (Blocks 20/5a, 20/5e and 21/1a) and P2170
(Blocks 20/5b and 21/1d) located in the UK Central North Sea and referred to
as the "Greater Buchan Area."  Licence P2498 contains the Buchan oil field
and J2 oil discovery and licence P2170 contains the Verbier oil discovery.
Following completion of the farm-out transaction with Serica Energy (UK)
Limited, expected in Q1-2024, the Company will retain a 20% interest in each
of the GBA licences.

 

JOG is focused on delivering shareholder value and growth through creative
deal-making, operational success and licensing rounds. Its management is
convinced that opportunities exist within the UK North Sea to deliver on this
strategy and the Company has a solid track-record of tangible success.

 

Forward-Looking Statements

This announcement may contain certain forward-looking statements that are
subject to the usual risk factors and uncertainties associated with an oil and
gas business.  Whilst the Company believes the expectations reflected herein
to be reasonable in light of the information available to it at this time, the
actual outcome may be materially different owing to factors beyond the
Company's control or otherwise within the Company's control but where, for
example, the Company decides on a change of plan or strategy.

 

All figures quoted in this announcement are in US dollars, unless stated
otherwise.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

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