REG - Jersey Oil & Gas PLC - Final Results & Notice of AGM
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RNS Number : 8757D Jersey Oil and Gas PLC 12 May 2026
12 May 2026
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Final Results for the Year Ended 31 December 2025
& Notice of Annual General Meeting
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
announce its audited financial results for the year ended 31 December 2025 and
the date of its forthcoming Annual General Meeting ("AGM").
Following the significant progress that has been made by the Company towards
monetising the Greater Buchan Area ("GBA"), the last year has frustratingly
seen momentum slowing as a result of the Government's consultations on the
future regulatory and fiscal direction of the UK North Sea. Despite this,
the Company remains well positioned as one of the leading UK listed small-cap
oil and gas companies, with a high-quality development portfolio and the
funding to deliver on its organic growth plans.
Buchan Development
The potential for the Buchan Horst ("Buchan") development to drive long term
shareholder value is well understood and securing sanction for this project
represents a huge opportunity. While the end of the Government consultations
in late 2025 helped provide additional clarity on the framework within which
future investment decisions can be assessed, it is clear that the industry as
a whole is still digesting the outcomes. Positive conclusions in respect of
the protracted environmental and regulatory approval processes for the North
Sea's "Jackdaw" and "Rosebank" developments will inevitably help inform the
optimal route forward for subsequent UK projects like Buchan. Obtaining
clarity from these processes and the likelihood of an earlier than planned
implementation of the "Oil and Gas Price Mechanism", the replacement regime
for the Energy Profits Levy, will help influence the timeline and steps for
taking the Buchan project towards sanction.
Although various headwinds have buffeted the industry, the core strengths of
our business remain unchanged:
§ Material resource base: With estimated gross resources of over 100 million
barrels of oil equivalent ("MMboe") in the Greater Buchan Area ("GBA"),
underpinned by a carried 20% working interest in the Buchan development, the
Company has the potential to generate substantial cash flow from its portfolio
§ "Hub and spoke" development plan: Unlocking the resource base involves the
installation of a central processing facility for the area, with initial
production from Buchan to be followed by the tieback of the other GBA feeder
fields
§ Fully funded: The farm-out transactions completed with NEO Next+ ("NEO")
and Serica Energy ("Serica") provide the funding for the Company's 20%
investment in the Buchan development, along with several milestone cash
payments - to date this has totalled over $25 million in cash and capital
expenditure carry payments
§ Strong industry partners: NEO and Serica are major, well-financed, UK North
Sea oil and gas operators that provide strength and expertise to a
high-quality joint venture partnership
§ Financial resilience: The Company continues to prudently manage the
financial position of the business and maintain its resilience to the delayed
sanction of the Buchan development, which has resulted from the regulatory and
fiscal headwinds the industry has faced
The Buchan joint venture is continuing to screen and consider additional
potential development solutions that have arisen as a result of the inevitable
delay in investment decision-making caused by the Government consultations.
Strategic Focus
The Company's vision is centred on successfully growing the business in a
smart and sustainable way, developing important domestic energy resources and
creating value for all stakeholders. The organisation is "right sized" for
the stage and scale of its current activities and maintains a nimble approach
to advancing its key strategic objectives.
JOG remains sharply focused on unlocking the organic value of the GBA,
combined with utilisation of its existing UK tax allowances of over $100
million through the pursuit of accretive asset acquisitions that bring cash
flow, diversity and quality investment opportunities into the portfolio.
Such opportunities are thoroughly assessed in terms of their potential
strategic fit, being mindful of the quality and unencumbered strengths of the
existing portfolio.
Outlook
The Company is well positioned to continue pursuing its core objective of
fully monetising the value of its GBA interests. With total year-end cash
reserves of £11 million, no debt and a current cash run rate of under £1.5
million per annum, the business is financially secure and funded for execution
of the Buchan development programme. This backdrop provides an attractive
springboard from which to realise the full potential and ambitions of the
business for delivering long-term shareholder value.
Annual General Meeting
The Company also announces that its 2025 Annual Report and Financial
Statements together with the AGM Notice and associated Form of Proxy are now
available on the Company's website (www.jerseyoilandgas.com) and will be
posted today to those shareholders who have elected to receive hardcopy
shareholder communications from the Company.
The Company will hold its AGM in respect of its financial year ended 31
December 2025 on 9 June 2026 at 11.00 a.m. at the offices of Strand Hanson
Limited, 26 Mount Row, London W1K 3SQ.
Andrew Benitz, Chief Executive Officer of JOG, commented:
"The message is beginning to land; as long as demand persists, the UK cannot
sustain a strategy that relies on importing oil and gas while discouraging
domestic North Sea production. The agreement on a more rational fiscal
mechanism for taxing North Sea oil and gas production during periods of
exceptionally high prices is a welcome and important step forward. However,
delaying its introduction to 2030 will come too late for many in the basin. We
believe that the straightforward step, which we understand the Government is
actively considering, of bringing this mechanism forward would help reopen the
UK North Sea and represent a major step towards unlocking the significant
investment potential that our Buchan redevelopment project has to offer."
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
Camarco Billy Clegg Tel: 020 3757 4980
Rebecca Waterworth
- Ends -
Notes to Editors:
Jersey Oil & Gas (AIM: JOG) is a UK energy company focused on creating
shareholder value through the development of oil and gas assets and the
execution of accretive transactions.
The Company has a focused asset portfolio centred on developing homegrown
North Sea resources that support the UK's energy requirements as it
transitions towards net zero. JOG holds a 20% 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" ("GBA"). Licence P2498 contains the Buchan Horst ("Buchan") oil field
and J2 oil discovery and licence P2170 contains the Verbier oil discovery.
JOG's strategy is focused on unlocking the organic value of its GBA assets,
combined with the pursuit of potential asset acquisitions that bring cash
flow, diversity and quality investment opportunities into the portfolio. The
Company's Board and Executive team have a wealth of experience in managing and
growing publicly listed energy companies and a strong track-record of value
creation in the UK North Sea's oil and gas sector.
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.
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.
CHAIRMAN & CHIEF EXECUTIVE OFFICER'S REPORT
Following the significant progress made by the Company since being awarded the
Buchan Horst ("Buchan") licence, 2025 was marked by a slowing in momentum as a
result of Government consultations on the future regulatory and fiscal
direction of the UK North Sea that were taking place during the year.
Having established the enviable position of owning a material interest in one
of the largest remaining oil development projects on the UK Continental Shelf,
via a joint venture with high-quality partners and an expenditure carry for
the investment programme, it was regrettable that uncertainty and delays on
the optimal way forward arose from the actions of Government policy making.
While the outcome of the consultations was ultimately published by the
Government in late 2025, it is apparent that there remains uncertainty in the
industry regarding long term investment decisions. This is driven by both
the continuing absence of approval for the Adura-operated "Jackdaw" and
"Rosebank" projects (Adura is the company formed through the combination of
the UK businesses of Shell and Equinor) and potential oscillations by the UK
Treasury around an earlier than stated end to the Energy Profits Levy.
Obtaining clarity on these matters naturally influences decisions on the
Buchan project and the appropriate route to project sanction.
Buchan Development Solution
Prior to the launch of the Government's regulatory and fiscal consultations in
2024, the plan for securing joint venture sanction and regulatory approval for
the development of the Buchan field was well established and the draft Field
Development Plan ("FDP") and associated Environmental Impact Assessment
("EIA") had been submitted to the regulatory authorities.
The development plan centred on the acquisition and redeployment of the
"Western Isles" floating production, storage and offloading vessel ("FPSO") as
a production processing facility located over the field, with up to five
gas-lifted production wells, supported by two water injection wells, connected
via subsea infrastructure to the vessel. With processing of the hydrocarbons
produced from the field taking place offshore, the oil would be exported
directly to market via shuttle tankers and gas via a pipeline connection to
nearby infrastructure.
The agreement to acquire the Western Isles FPSO was ultimately terminated by
Dana Petroleum after it reached its longstop date in March 2025. Despite
significant work being undertaken to satisfy the conditions precedent in the
agreement and enable handover of the vessel to the Buchan operator, the
ability to extend the agreement was inevitably hindered by the absence of a
clear timeline to achieving FDP approval given the uncertainty shrouding
potential North Sea investment activities resulting from the Government
consultations. Nevertheless, the passage of time caused by the consultations
means that other potential production solutions have now arisen and warrant
further screening and consideration to verify the optimal development plan.
The Western Isles FPSO remains available for re-use and as such represents one
of several options for Buchan and additional development engineering
activities to assess alternatives is part of the work programme being
completed during 2026.
Fiscal Regime Changes
Given the results of the Government's fiscal consultations, the optimal
development timeline is inevitably influenced by the planned switch in the tax
regime between the application of the EPL and its planned replacement, the Oil
and Gas Price Mechanism ("OGPM"). The Government announced in late 2025 that
the EPL would continue to apply in its current form until 1 April 2030,
implying a marginal tax rate of 78% for the industry. In contrast, the OGPM
will replace the EPL with a revenue-based model for calculating windfall
profits, that levies a 35% tax only on the revenues generated above applicable
commodity threshold prices (in addition to the corporate and supplementary tax
rate of 40%).
Under the OGPM two independent threshold price points will be set annually,
one for oil (in dollars per barrel) and one for gas (in pence per therm).
The thresholds in financial year 2026-27 have been set at $90/bbl for oil and
90p/therm for gas - they will be adjusted annually in line with CPI inflation
and are projected to be around $98/bbl and 98p/therm by 2030. When in
effect, the OGPM restores the tax rate to the 40% headline rate in the
permanent regime, with the OGPM only applying to oil and/or gas revenues in
the event the respective commodity price is unusually high.
While clarity on the long-term fiscal regime was a positive step forward and
was on the whole, welcomed by our industry, the delay in implementing the OGPM
was not helpful for providing the confidence boost required to achieve the
goal of reigniting major North Sea investment programmes. However, in the
Chancellor's Spring Statement and subsequent engagement with the industry,
which took place just days prior to the start of the war in Iran and the rapid
escalation in energy prices, there was a growing expectation that the
Government was on the cusp of bringing forward the end date for the EPL to
late 2027. While this change was by no means certain, the growing strength
of belief in the industry that it may happen has served to continue the period
of fiscal uncertainty. We urge the Government to effect an early move to the
application of the OGPM before the infrastructure serving the North Sea is
lost, thereby removing the economic opportunity for further major investments
in the basin.
Environmental Approvals
Achieving regulatory approval for the Buchan development plan requires
confirmation from OPRED of no objections to the EIA for the project. This is
the key regulatory pre-cursor to approval by the North Sea Transition
Authority ("NSTA").
Upon reconfirmation of the development plan, an addendum to the existing
Buchan EIA will be required. Based on the results of the environmental
consultation, the assessment will need to be expanded to consider the impact
of combustion of the produced hydrocarbons, "Scope 3" emissions, from the
project. While the consultation provided clarity on this, the associated
guidance issued by the Offshore Petroleum Regulator for the Environment and
Decommissioning ("OPRED") inevitably requires some interpretation as to how
this is achieved. Additional work has been completed on this to establish a
robust methodology for calculating Scope 3 emissions and setting out the
significance of these in the context of UK national and international
emissions targets. However, it is expected that the ultimate guide for the
information that will need to be presented on the project will be evidenced in
the submissions made for the Jackdaw and Rosebank developments in the UK.
Both of these projects have submitted revised EIAs that incorporate an
assessment of Scope 3 emissions and these have recently undergone a public
consultation process. OPRED subsequently issued clarificatory questions on
the submissions in March 2026, which will require Adura to provide further
information and potentially undertake an additional period of public
consultation for the projects.
Adura's work is leading the way on establishing the information benchmark for
successful EIA submissions, the results of which will inform the most
efficient way forward for Buchan. It is expected that clarity on the Jackdaw
and Rosebank submissions and the overall OPRED and NSTA approval processes
should be achieved later this year.
Evolving UK North Sea
Set against the recent evolution in the regulatory landscape, there has been
dramatic changes in the UK North Sea corporate landscape. We have witnessed
a significant period of consolidation, with many of the Majors exiting their
direct holdings by combining operations with the independent producers in the
basin.
Most significantly for JOG, the Buchan operator recently became the largest
producer in the UK North Sea, with a production portfolio of over 250,000
barrels of oil equivalent per day. In the last twelve months, NEO Energy
Limited has not only combined its business with the UK subsidiary of Repsol
S.A., but in March 2026 it completed a subsequent merger with the UK business
of TotalEnergies S.A., to create NEO Next+ ("NEO").
Serica Energy ("Serica") also announced a series of strategic acquisitions
during the year, establishing the business as the leading mid-tier UK North
Sea producer.
The major transformations that have taken place with NEO and Serica places the
growth prospects that the Buchan project provides within two high-quality, UK
North Sea focused asset portfolios. Access to a project with estimated gross
mid case proven and probable resources of approximately 70 million barrels of
oil equivalent represents a material prize at this stage of the UK North Sea
lifecycle. This level of resources, combined with the quality of the joint
venture partners and our fully carried capital expenditure position, sets us
apart as one of the leading listed small-cap UK North Sea players.
Financial Resilience
The Company remains well positioned financially, with total cash reserves and
term deposits at the end of 2025 of £11 million and no debt. The cash
running cost of the business has been carefully managed and reduced to an
annualised rate of under £1.5 million to ensure resilience in the face of the
delayed sanction of the Buchan development and receipt of the next milestone
cash payment under the terms of the farm-out agreements. This has been
achieved in no small part thanks to the support and commitment of our key
service providers and our employees, who continue to work on reduced salaries
to help bridge the Company's finances to the point of clarity on the Buchan
development timeline.
Looking to the long term, the financial outlook of the business is clearly
underpinned by the terms of the farm-out agreements executed with NEO and
Serica. These provide for the Company's 20% share of the Buchan project
expenditure included in the approved FDP budget to be fully carried by our two
joint venture partners. A further $20 million cash tranche is payable under
the terms of the agreements following approval of the Buchan FDP by the NSTA
and receipt of all the associated regulatory and legal consents.
Summary and Outlook
The potential for the Buchan development to drive long term shareholder value
is well understood and securing sanction for the project represents a huge
opportunity that can unlock estimated gross resources of over 100 MMBOE and
significant exploration upside in the Greater Buchan Area. The conclusion of
the Government's industry consultations has clearly helped with providing
additional clarity on the framework within which investment decisions can be
evaluated, but it is apparent that the industry as a whole is still digesting
the outcomes and assessing the optimal way to move capital expenditure
programmes forward.
We recognise that the practicalities of how best to successfully navigate the
environmental approval process for new developments like Buchan will be
forthcoming following the on-going efforts of Adura on Jackdaw and Rosebank.
Armed with such information and a re-assessment of the wider set of potential
development options now open to the Buchan joint venture, we look forward to
being able to provide additional details on the planned way forward and
timelines for advancing the project later in the year.
It is naturally frustrating for us all to be in a period where patience is the
name of the game. Positively, however, the political and societal desire for
homegrown energy is greater than it has been for many years and this provides
an encouraging backdrop for projects like Buchan. We continue to carefully
manage the financial resilience of the Company to cope with the delayed
development timeline, while maintaining the skills and capabilities of the
business to deliver upon our strategic imperatives. We believe that there
remains more to do to grow the business in the North Sea, especially as the
number of companies operating in the basin reduces. To accelerate potential
value creation from our existing UK tax allowances of over $100 million, we
continue to thoroughly evaluate potential UK producing asset acquisitions. A
limited number of potential international producing asset opportunities have
also been assessed over the last year. While not immediately considered as
the key strategic target, such assets are reviewed on a highly selective basis
where it may be possible to materially add value through our internal
expertise and resources.
We greatly appreciate the support and patience we have received from our
shareholders over what has been a complicated time for the UK North Sea oil
and gas industry and we will continue striving to successfully deliver upon
the full potential of the business.
Les Thomas,
Non-Executive
Chairman
Andrew Benitz,
Chief Executive Officer
11 May 2026
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2025
Continuing operations Note 2025 2024
£ £
Administrative expenses (2,169,240) (4,079,726)
Operating loss (2,169,240) (4,079,726)
Finance income 6 460,425 542,637
Finance expense 6 (2,383) (3,185)
Loss before tax 7 (1,711,198) (3,540,274)
Tax 8 - -
Loss for the year (1,711,198) (3,540,274)
Total comprehensive loss for the year (net of tax) (1,711,198) (3,540,274)
Total comprehensive loss for the year attributable to:
Owners of the parent (1,711,198) (3,540,274)
Loss per share expressed in pence per share:
Basic 9 (5.24) (10.84)
Diluted 9 (5.24) (10.84)
The notes are an integral part of these financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2025
Note 2025 2024
£ £
Non-current assets
Intangible assets - exploration & development costs 10 11,873,233 11,741,406
Property, plant and equipment 11 925 1,675
Right-of-use assets 12 27,932 83,797
Deposits - 17,466
11,902,090 11,844,344
Current assets
Trade and other receivables 13 88,119 86,732
Cash and cash equivalents 14 723,203 6,185,872
Term deposits 15 10,300,000 6,150,000
11,111,322 12,422,604
Total assets 23,013,412 24,266,948
Equity
Called up share capital 16 2,574,529 2,574,529
Share premium account 110,535,059 110,535,059
Share options reserve 20 4,798,938 4,504,673
Accumulated losses (94,752,562) (93,349,289)
Reorganisation reserve (382,543) (382,543)
Total equity 22,773,421 23,882,429
Liabilities
Non-current liabilities
Lease liabilities 18 - 14,585
- 14,585
Current liabilities
Trade and other payables 17 225,516 313,211
Lease liabilities 12 14,475 56,723
239,991 369,934
Total liabilities 239,991 384,519
Total equity and liabilities 23,013,412 24,266,948
The financial statements were approved by the Board of Directors and
authorised for issue on 11 May 2026. They were signed on its behalf by Graham
Forbes - Chief Financial Officer.
Graham Forbes
Chief Financial Officer 11 May 2026
Company Registration Number: 07503957
The notes are an integral part of these financial statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
Called up Share premium account Share options reserve Accumulated Reorganisation
share capital £ £ losses reserve Total equity
£ £ £ £
At 1 January 2024 Note 2,574,529 110,535,059 3,890,986 (89,960,102) (382,543) 26,657,929
Loss and total comprehensive loss for the year
- - - (3,540,274) - (3,540,274)
Transactions with owners in their capacity as owners
Expired share options 20 - - (151,087) 151,087 - -
Share based payments 20 - - 764,774 - - 764,774
At 31 December 2024 and 2,574,529 110,535,059 4,504,673 (93,349,289) (382,543) 23,882,429
1 January 2025
Loss and total comprehensive loss for the year
- - - (1,711,198) - (1,711,198)
Transactions with owners in their capacity as owners
Expired share options 20 - - (307,925) 307,925 - -
Share based payments 20 - - 602,190 - - 602,190
At 31 December 2025 2,574,529 110,535,059 4,798,938 (94,752,562) (382,543) 22,773,421
The following describes the nature and purpose of each reserve within owners'
equity:
Reserve Description and purpose
Called up share capital Represents the nominal value of shares issued
Share premium account Amount subscribed for share capital in excess of nominal value
Share options reserve Represents the accumulated balance of share-based payment charges recognised
in respect of share options granted by the Company less transfers to
accumulated deficit in respect of options exercised or cancelled/lapsed
Accumulated losses Cumulative net gains and losses recognised in the Consolidated Statement of
Comprehensive Income
Reorganisation reserve Amounts resulting from the restructuring of the Group at the time of the
Initial Public Offering (IPO) in 2011
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December
2025 2024
Note £ £
Cash flows from operating activities
Cash used in operations 22 (1,565,696) (3,359,763)
Interest paid 6 (2,383) (3,185)
Net cash used in operating activities (1,568,079) (3,362,948)
Cash flows from investing activities
Farm-out proceeds - 5,519,216
Interest received 6 472,997 490,674
Purchase of tangible assets 11 - (2,363)
Purchase of intangible assets 10 (160,754) (736,487)
Investing cash flows before movements in capital balances 312,243 5,271,040
Changes in Term deposits: 15 (4,150,000) (1,150,000)
Net cash (used in)/from investing activities (3,837,757) 4,121,040
Cash flows from financing activities
Principal elements of lease payments (56,832) (55,155)
Net cash used in financing activities (56,832) (55,155)
(Decrease)/increase in cash and cash equivalents 22 (5,462,669) 702,937
Cash and cash equivalents at beginning of year 14 6,185,872 5,482,935
Cash and cash equivalents at end of year 14 723,203 6,185,872
The notes are an integral part of these financial statements
Notes to the Consolidated Financial Statements
For the year ended 31 December 2025
1. General information
Jersey Oil and Gas plc (the "Company") and its subsidiaries (together, the
"Group") are involved in the upstream oil and gas business in the UK.
The Company is a public limited company incorporated and domiciled in England
& Wales and quoted on AIM, a market operated by London Stock Exchange plc.
The address of its registered office is 71-75 Shelton Street, Covent Garden,
London WC2H 9JQ.
2. Material accounting policies
The material accounting policies applied in the preparation of these
consolidated financial statements are set out below. These policies have been
consistently applied to all the periods presented, unless otherwise stated.
Basis of Accounting
The consolidated financial statements of Jersey Oil and Gas Plc as of 31
December 2025 and for the year then ended (the "consolidated financial
statements") were prepared in accordance with UK-adopted International
Accounting Standards in conformity with the requirements of the Companies Act
2006 (the "Companies Act").
The financial statements have been prepared under the historic cost
convention, except as disclosed in the accounting policies below. All amounts
disclosed in the financial statements and notes have been rounded off to the
nearest one thousand pounds unless otherwise stated.
Going Concern
The Group has sufficient resources to meet its liabilities as they fall due
for a period of at least 12 months after the date of issue of these financial
statements with forecast cashflow projections being performed out to December
2027. The Group had cash reserves and treasury deposits of £11.0 million as
at 31 December 2025 and has a fully funded 20% interest in its on-going Buchan
redevelopment project. Other work that the Group is undertaking in respect of
the GBA licenses and surrounding areas is modest relative to its current cash
reserves and treasury deposits. The Group's current cash reserves and treasury
deposits are therefore expected to more than exceed its estimated cash
outflows of under £1.4 million under all reasonable scenarios for at least 12
months following the date of issue of these financial statements. Even in a
scenario where the Buchan redevelopment project did not progress for any
reason and any future fam-out instalment payments were not realised, the Group
already has in place a cost structure and expenditure profile that enables the
business to continue beyond the next 12 months solely from utilisation of its
existing cash reserves and treasury deposits. The directors have also
considered the risk associated with contractual arrangements associated with
the farm-outs and are satisfied that the Group is not exposed to any
contractual commitments which could impact on the Group's going concern status
over the next 12 months. Based on these circumstances, the directors have
considered it appropriate to adopt the going concern basis of accounting in
preparing the consolidated financial statements.
New and amended standards adopted by the Group. The Group has applied the
following amendments for the first time for the annual reporting period
commencing 1 January 2025:
• Lack of Exchangeability (Amendments to IAS 21)
The amendments listed above did not have any impact on the amounts recognised
in prior periods and are not expected to significantly affect the current or
future periods.
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting standards and
interpretations have been published that are not mandatory for 31 December
2025 reporting periods and have not been early adopted by the Group. These
standards, amendments or interpretations are not expected to have a material
impact on the entity in the current or future reporting periods or on
foreseeable future transactions.
• Amendments to the Classification and Measurement of Financial
Instruments (Amendments
• to IFRS 9 and 7)
• IFRS 18 'Presentation and Disclosure in Financial Statements'
• IFRS 19 'Subsidiaries without Public Accountability: Disclosures'
• Annual Improvements to IFRS Accounting Standards - Volume 11
• Contracts Referencing Nature-dependent Electricity - Amendments to
IFRS 9 and IFRS 7
Significant Accounting Judgements and Estimates
The preparation of the financial statements requires management to make
estimates and assumptions that affect the reported amounts of expenses, assets
and liabilities at the date of the financial statements. If in the future such
estimates and assumptions, which are based on management's best judgement at
the date of the financial statements, deviate from the actual circumstances,
the original estimates and assumptions will be modified as appropriate in the
period in which the circumstances change. The Group's accounting policies make
use of accounting estimates and judgements in the following areas:
• The judgement of the existence of impairment triggers (note 10).
• The estimation of share-based payment costs (note 20).
• The judgement associated with the treatment of farm-out
transactions.
Impairments
The Group tests its capitalised exploration licence costs for impairment when
indicators, further detailed below under 'Exploration and Evaluation Costs' as
set out in IFRS 6, suggest that the carrying amount exceeds the recoverable
amount which is inherently judgmental. An impairment loss is recognised for
the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount of the Cash Generating Unit is the higher of an
asset's fair value less costs of disposal and value in use. The Group assessed
that there were no impairment triggers during the year.
Share-Based Payments
The Group currently has several share schemes that give rise to share-based
payment charges. The charge to operating profit for these schemes amounted to
£602,190 (2024: £764,774). Estimates and judgements for determining the fair
value of the share options are required. For the purposes of the calculation,
a Black-Scholes option pricing model has been used. Based on experience, it
has been assumed that options will be exercised, on average, at the mid-point
between vesting and expiring. The risk-free rate of return is based on the
implied yield available on zero coupon gilts with a term remaining equal to
the expected lifetime of the options at the date of grant. Estimates are also
used when calculating the likelihood of share options vesting given the
vesting conditions of time and performance on the options granted. Share
options that expire unexercised are accounted for by reversing any previously
recognised expense. Expired options do not result in a cash outflow and have
no further impact on the Group's financial position beyond the reversal of
previously recognised charges.
Farm-out transactions
Determining the value of the consideration received for a farm-out disposal of
assets with proven resources can be challenging. This is even more the case
for assets which are farmed out in the pre proven resources phase. A
judgement has been made that for such farm-outs only cash payments received
will be recognised and no recognition will be made of any consideration in
respect of the future value of work to be performed and carried by the farmee.
Rather, the Group will carry the remaining interest at the previous full
interest cost reduced by the amount of any cash consideration received from
entering into the agreement. The effect will be that there is no gain
recognised on the farm-out unless the cash consideration received exceeds the
carrying value of the entire asset held. Upon FID, the Group will start
recognising both cash payments received and the value of future carried assets
to be received and will recognise a future asset receivable with an
accompanying gain in the income statement for the equity share of the asset
disposed of.
Basis of Consolidation
(a) Subsidiaries
Subsidiaries are all entities over which the Group has the power to govern
their financial and operating policies generally accompanying a shareholding
of more than one half of the voting rights. The existence and effect of
potential voting rights that are currently exercisable or convertible are
considered when assessing whether the Group controls another entity. The Group
also assesses the existence of control where it does not have more than 50% of
the voting power but is able to govern the financial and operating policies by
virtue of de facto control. De facto control may arise in circumstances where
the size of the Group's voting rights relative to the size and dispersion of
holdings of other Shareholders give the Group the power to govern the
financial and operating policies.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are de-consolidated from the date the Group
ceases to have control.
(b) Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of
control are accounted for as equity transactions - that is, as transactions
with the owners in their capacity as owners. The difference between fair value
of any consideration paid and the relevant share acquired of the carrying
value of net assets of the subsidiary is recorded in equity. Gains or losses
on disposals to non-controlling interests are also recorded in equity.
(c) Disposal of subsidiaries
When the Group ceases to have control any retained interest in the entity is
remeasured to its fair value at the date when control is lost, with the change
in carrying amount recognised in profit or loss. The fair value is the initial
carrying amount for the purposes of subsequently accounting for the retained
interest as an associate, joint venture, or financial asset. In addition, any
amounts previously recognised in other comprehensive income in respect of that
entity are accounted for as if the Group had directly disposed of the related
assets or liabilities. This may mean that amounts previously recognised in
other comprehensive income are reclassified to profit or loss.
Inter-company transactions, balances, income and expenses on transactions
between Group companies are eliminated on consolidation. Profits and losses
resulting from inter-company transactions that are recognised in assets are
also eliminated on consolidation. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with the policies adopted
by the Group.
The following subsidiaries which are included in these consolidated accounts
are exempt from the requirements of the Companies Act relating to the audit of
their accounts under section 479A of the Companies Act 2006:
Subsidiary Registration number Country of Incorporation
Jersey North Sea Holdings Ltd 06451896 England & Wales
Jersey Petroleum Ltd 06490608 England & Wales
Jersey V&C Ltd 10853027 England & Wales
Sunny Day 123 Ltd* 15207887 England & Wales
Jersey E & P Ltd** SC319467 Scotland
Jersey Oil Ltd** SC319461 Scotland
Jersey Exploration Ltd** SC319459 Scotland
Jersey Oil & Gas E & P Ltd 115157 Jersey
*Dissolved 25 February 2025
**Dissolved 11 February 2025
Acquisitions, Asset Purchases and Disposals
Transactions involving the purchase of an individual field interest, farm-ins,
farm-outs or acquisitions of exploration and evaluation licences for which a
development decision has not yet been made that do not qualify as a business
combination, are treated as asset purchases. Accordingly, no goodwill or
deferred tax arises. The purchase consideration is allocated to the assets and
liabilities purchased on an appropriate basis. Proceeds on disposal (including
farm-ins/farm-outs) are applied to the carrying amount of the specific
intangible asset or development and production assets disposed of, and any
surplus is recorded as a gain on disposal in the Consolidated Statement of
Comprehensive Income.
Acquisitions of oil and gas properties are accounted for under the purchase
method where the acquisitions meet the definition of a business combination.
The Group applies the acquisition method of accounting to account for business
combinations. The consideration transferred for the acquisition of a
subsidiary is the fair value of the assets transferred, the liabilities
incurred, and the equity interests issued by the Group. The consideration
transferred includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable assets acquired and
liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair value at the acquisition date. The Group
recognises any non-controlling interest in the acquiree on an
acquisition-by-acquisition basis, either at fair value or at the
non-controlling interest's proportionate share of the recognised amounts of
the acquiree's identifiable net assets.
Acquisition related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date fair
value of the acquirer's previously held equity interest in the acquiree is
remeasured to fair value at the acquisition date through profit or loss.
Any contingent consideration to be transferred on a business combination by
the Group is recognised at fair value at the acquisition date. Subsequent
changes to the fair value of the contingent consideration that is deemed to be
an asset or liability are recognised in accordance with IFRS 9 either in
profit or loss or as a change to other comprehensive income. Contingent
consideration that is classified as equity is not remeasured, and its
subsequent settlement is accounted for within equity.
Goodwill is initially measured as the excess of the aggregate of the
consideration transferred and the fair value of the non-controlling interest
over the net identifiable assets acquired and liabilities assumed. If this
consideration is lower than the fair value of the net assets of the subsidiary
acquired, the difference is recognised in profit or loss.
Exploration and Evaluation Costs
The Group accounts for oil and gas exploration and evaluation costs using IFRS
6 "Exploration for and Evaluation of Mineral Resources". Such costs are
initially capitalised as Intangible Assets and include payments to acquire the
legal right to explore, together with the directly related costs of technical
services and studies, seismic acquisition, exploratory drilling and testing.
The Group only capitalises costs as intangible assets once the legal right to
explore an area has been obtained. The Group assesses the intangible assets
for indicators of impairment at each reporting date.
Potential indicators of impairment include but are not limited to:
a. the period for which the Group has the right to explore in the specific
area has expired during the period or will expire soon and is not expected to
be renewed.
b. substantive expenditure on further exploration for and evaluation of
oil and gas reserves in the specific area is neither budgeted nor planned.
c. exploration for and evaluation of oil and gas reserves in the specific
area have not led to the discovery of commercially viable quantities of oil
and gas reserves and the entity has decided to discontinue such activities in
the specific area.
d. sufficient data exist to indicate that, although a development in the
specific area is likely to proceed, the carrying amount of the exploration and
evaluation asset is unlikely to be recovered in full-from successful
development or by sale.
The Group analyses the oil and gas assets into cash generating units (CGUs)
for impairment and reporting purposes. In the event an impairment trigger is
identified the Group performs a full impairment test for the CGU under the
requirements of IAS 36 Impairment of assets. An impairment loss is recognised
for the amount by which the exploration and evaluation assets' carrying amount
exceeds their recoverable amount. The recoverable amount is the higher of the
exploration and evaluation assets' fair value less costs of disposal and value
in use.
As at 31 December 2025, the carrying value of intangible assets was £11.9m,
as per Note 10 'Intangible Assets'. The Group considered other factors which
could give rise to an impairment trigger such as commodity prices, licence
expiration dates, budgeted spend and movements in estimated recoverable
reserves. Based on this assessment, no impairment triggers existed in
relation to exploration assets as of 31 December 2025. For more detail on
the current position, please refer to note 23, Post Balance Sheet Events.
Property, Plant and Equipment
Property, plant and equipment is stated at historic cost less accumulated
depreciation. Asset lives and residual amounts are reassessed each year.
Cost includes the original purchase price of the asset and the costs
attributable to bringing the asset to its working condition for its intended
use.
Depreciation on these assets is calculated on a straight-line basis as
follows:
Computer & office equipment 3 years
Leases
Assets and liabilities arising from a lease are initially measured on a
present value basis. Lease liabilities include the net present value of the
following lease payments:
• fixed payments (including in-substance fixed payments), less any
lease incentives receivable;
• variable lease payments that are based on an index or a rate,
initially measured using the index or rate as at the commencement date;
• amounts expected to be payable by the Group under residual value
guarantees;
• the exercise price of a purchase option if the Group is reasonably
certain to exercise that option; and
• payments of penalties for terminating the lease, if the lease term
reflects the Group exercising that option.
Lease payments to be made under reasonably certain extension options are also
included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the
lease. If that rate cannot be readily determined, which is generally the case
for leases in the Group, the lessee's incremental borrowing rate is used,
being the rate that the individual lessee would have to pay to borrow the
funds necessary to obtain an asset of similar value to the right-of-use asset
in a similar economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Group where possible, uses
recent third-party rates provided by banks or financial institutions as a
starting point, adjusted to reflect changes in financing conditions since
third party financing was received.
Lease payments are allocated between principal and finance cost. The finance
cost is charged to profit or loss over the lease period to produce a constant
periodic rate of interest on the remaining balance of the liability for each
period.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date less
any lease incentives received;
• any initial direct costs; and
• restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset's
useful life and the lease term on a straight-line basis. If the Group is
reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset's useful life.
Payments associated with short-term leases of equipment and vehicles, and all
leases of low-value assets are recognised on a straight-line basis as an
expense in profit or loss. Short-term leases are leases with a lease term of
12 months or less. Low-value assets comprise any lease with a value of £5,000
or less.
Joint Ventures
The Group participates in joint venture/co-operation agreements with strategic
partners; these are classified as joint operations. The Group accounts for its
share of assets, liabilities, income and expenditure of these joint venture
agreements and discloses the details in the appropriate Statement of Financial
Position and Statement of Comprehensive Income headings in the proportion that
relates to the Group per the joint venture agreement.
Investments
Fixed asset investments in subsidiaries are stated at cost less accumulated
impairment in the Company's Statement of Financial Position and reviewed for
impairment if there are any indications that the carrying value may not be
recoverable.
Financial Instruments
Financial assets and financial liabilities are recognised in the Group and
Company's Statement of Financial Position when the Group becomes party to the
contractual provisions of the instrument. The Group does not have any
derivative financial instruments.
Cash and cash equivalents include cash in hand and deposits held on call with
banks with a maturity of three months or less.
Term deposits are those amounts held by third parties on behalf of the Group
and are not available for the Group's use; these are recognised separately
from cash and cash equivalents on the balance sheet.
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less any
expected credit loss. The Group recognises an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair value through profit
or loss. ECLs are based on the difference between the contractual cash flows
due in accordance with the contract and all the cash flows that the Group
expects to receive, discounted at an approximation of the original effective
interest rate. The carrying amount of the asset is reduced with an allowance
account, and the amount of the loss will be recognised in the Consolidated
Statement of Comprehensive Income within administrative expenses. Subsequent
recoveries of amounts previously provided for are credited against
administrative expenses in the Consolidated Statement of Comprehensive Income.
Trade payables are stated initially at fair value and subsequently measured at
amortised cost.
Offsetting of Financial Instruments
Financial assets and financial liabilities are offset, and the net amount is
reported in the Consolidated Statement of financial position if there is a
currently enforceable legal right to offset the recognised amounts and there
is an intention to settle on a net basis, or to realise the assets and settle
the liabilities simultaneously.
Deferred Tax
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit. Deferred taxation liabilities are provided, using the liability
method, on all taxable temporary differences at the reporting date. Such
assets and liabilities are not recognised if the temporary difference arises
from goodwill or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
Deferred income tax assets are recognised to the extent that it is probable
that future taxable profits will be available against which the temporary
differences can be utilised. The carrying amount of deferred tax assets is
reviewed at each reporting date.
Current Tax
The current income tax charge is calculated based on the tax laws enacted or
substantively enacted at the end of the reporting period in the countries
where Jersey Oil and Gas Plc and its subsidiaries operate and generate taxable
income. We periodically evaluate positions taken in tax returns with respect
to situations in which applicable tax regulation is subject to interpretation.
Provisions are established where appropriate based on amounts expected to be
paid to the tax authorities.
Current tax is payable based upon taxable profit for the year. Taxable profit
differs from net profit as reported in the Statement of Comprehensive Income
because it excludes items of income or expense that are taxable or deductible
in other years and it further excludes items that are never taxable or
deductible. Any Group liability for current tax is calculated using tax rates
that have been enacted or substantively enacted by the reporting date.
Foreign Currencies
The functional currency of the Company and its subsidiaries is Sterling.
Monetary assets and liabilities in foreign currencies are translated into
Sterling at the rates of exchange ruling at the reporting date. Transactions
in foreign currencies are translated into Sterling at the rate of exchange
ruling at the date of the transaction. Gains and losses arising on
retranslation are recognised in the Consolidated Statement of Comprehensive
Income for the year.
Employee Benefit Costs
Payments to defined contribution retirement benefit schemes are recognised as
an expense when employees have rendered service entitling them to
contributions.
Share-Based Payments
Equity settled share-based payments to employees and others providing similar
services are measured at the fair value of the equity instruments at the grant
date. The total amount to be expensed is determined by reference to the fair
value of the options granted using the Black-Scholes Model:
• including any market performance conditions (for example, an
entity's share price);
• excluding the impact of any service and non-market performance
vesting conditions (for example, profitability, sales growth targets and
remaining an employee of the entity over a specified time-period); and
• including the impact of any non-vesting conditions (for example,
the requirement for employees to save).
The fair value determined at the grant date of the equity settled share-based
payments is expensed on a straight-line basis over the vesting period, based
on the Group's estimate of equity instruments that will eventually vest, with
a corresponding increase in equity. At the end of each reporting period, the
Group revises its estimate of the number of equity instruments expected to
vest. The impact of the revision of the original estimates, if any, is
recognised in profit or loss such that the cumulative expense reflects the
revised estimate, with a corresponding adjustment to the equity settled
employee benefits reserve.
Equity settled share-based payment transactions with parties other than
employees are measured at the fair value of the goods or services received,
except where that fair value cannot be estimated reliably, in which case they
are measured at the fair value of the equity instruments granted, measured at
the date the entity obtains the goods, or the counterparty renders the
service.
Exercise proceeds net of directly attributable costs are credited to share
capital and share premium.
Contingent Liabilities & Provisions
In accordance with IAS 37, provisions are recognised where a present
obligation exists to third parties because of a past event, where a future
outflow of resources with economic benefits is probable and where a reliable
estimate of that outflow can be made. If the criteria for recognising a
provision are not met, but the outflow of resources is not remote, such
obligations are disclosed in the notes to the consolidated financial
statements (see note 19). Contingent liabilities are only recognised if the
obligations are more certain, i.e. the outflow of resources with economic
benefits has become probable and their amount can be reliably estimated.
Share Capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new ordinary shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
3. Segmental reporting
Operating segments are reported in a manner consistent with the internal
reporting provided to the Board of Directors.
The Board considers that the Group operates in a single segment, that of oil
and gas exploration, appraisal, development and production, in a single
geographical location, the North Sea of the United Kingdom.
The Board is the Group's chief operating decision maker within the meaning of
IFRS 8 "Operating Segments".
During 2025 and 2024 the Group had no revenue.
4. Financial risk management
The Group's activities expose it to financial risks, and its overall risk
management programme focuses on minimising potential adverse effects on the
financial performance of the Group. The Company's activities are also exposed
to risks through its investments in subsidiaries and it is accordingly exposed
to similar financial and capital risks as the Group.
Risk management is carried out by the Directors, and they identify, evaluate,
and address financial risks in close co-operation with the Group's management.
The Board provides written principles for overall risk management, as well as
written policies covering specific areas, such as mitigating foreign exchange
risks and investing excess liquidity.
Credit Risk
The Group's credit risk primarily relates to its trade receivables.
Responsibility for managing credit risks lies with the Group's management.
A debtor evaluation is typically obtained from an appropriate credit rating
agency. Where required, appropriate trade finance instruments such as letters
of credit, bonds, guarantees and credit insurance will be used to manage
credit risk.
Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its
financial obligations as they become due. The Group manages its liquidity
through continuous monitoring of cash flows from operating activities, review
of actual capital expenditure programmes, and managing maturity profiles of
financial assets and financial liabilities.
Capital Risk Management
The Group seeks to maintain an optimal capital structure. The Group considers
its capital to comprise both equity and net debt.
The Group monitors its capital mix needs and suitability dependent upon the
development stage of its asset base. Earlier stage assets (pre-production)
typically require equity rather than debt given the absence of cash flow to
service debt. As the asset mix becomes biased towards production then
typically more debt is available. The Group seeks to maintain progress in
developing its assets in a timely fashion. With the completion of the NEO
Energy farm-out in 2023 and the Serica Energy farm-out in 2024, the Group
expects 's that its two industry partners will deliver sufficient cash to
progress its assets to first oil in return for a capital (equity) contribution
via the farm-outs. As the GBA redevelopment project progresses towards first
oil, debt will become available and may be sought to enhance equity returns.
As at 31 December 2025 there are no borrowings within the Group (2024: Nil).
The Group monitors its capital structure by reference to its net debt to
equity ratio. Net debt to equity ratio is calculated as net debt divided by
total equity. Net debt is calculated as borrowings less cash and cash
equivalents. Total equity comprises all components of equity.
Maturity analysis of financial liabilities
Financial liabilities
2025 2024
£ £
Up to 3 months 202,028 281,102
3 to 6 months - -
Over 6 months - -
202,028 281,102
Lease liabilities
2025 2024
£ £
Up to 3 months 14,585 14,585
3 to 6 months - 14,585
Over 6 months - 43,755
14,585 72,925
5. Employees and Directors
2025 2024
£ £
Wages and salaries 748,739 2,356,684
Social security costs 82,237 229,520
Share-based payments (note 20) 602,190 764,774
Other pension costs 81,061 304,165
1,514,227 3,655,143
Other pension costs include employee and Group contributions to money purchase
pension schemes.
The average monthly number of employees during the year was as follows:
2025 2024
No. No.
Directors 4 5
Employees - Finance 1 1
Employees - Technical 4 5
9 11
Directors' Remuneration: 2025 2024
£ £
Directors' remuneration 347,317 1,162,791
Payment in lieu of notice - 14,150
Directors' pension contributions to money purchase schemes 5,930 36,102
Share-based payments (note 20) 331,268 447,420
Benefits 9,369 9,377
693,884 1,669,840
The average number of Directors to whom retirement benefits were accruing was
as follows:
2025 2024
No. No.
Money purchase schemes 2 2
Information regarding the highest paid Director is as follows:
2025 2024
£ £
Aggregate emoluments and benefits 151,351 507,798
Share-based payments 176,764 211,884
Pension contributions - 22,917
328,115 742,599
Key management compensation
Key management includes Directors (Executive and Non-Executive) and an adviser
to the Board. The compensation paid or payable to key management for
employee services is shown below:
2025 2024
£ £
Wages and short-term employee benefits 356,686 1,186,318
Share-based payments (note 20) 331,268 447,420
Pension Contributions 5,930 36,102
693,884 1,669,840
6. Finance Income and Expense
2025 2024
£ £
Finance income:
Interest received 460,425 542,637
460,425 542,637
Finance costs:
Interest paid (876) -
Interest on lease liability (1,508) (3,185)
(2,384) (3,185)
Net finance income 458,041 539,452
7. Loss Before Tax
The loss before tax is stated after charging/(crediting):
2025 2024
£ £
Depreciation - tangible assets 750 688
Depreciation - right-of-use asset 55,864 55,864
Auditors' remuneration - audit of parent company and consolidation 84,000 84,325
Foreign exchange loss/(gain) 4,290 (3,792)
8. Tax
Reconciliation of tax charge
2025 2024
£ £
Loss before tax (1,711,198) (3,540,274)
Tax at the standard rate of 25% avg. (2024: 25%avg.) (427,800) (885,069)
Capital allowances in excess of depreciation 14,042 14,002
Expenses not deductible for tax purposes and non-taxable income 152,438 193,551
Deferred tax asset not recognised 261,320 677,516
Total tax expense reported in the Consolidated Statement of Comprehensive - -
Income
No liability to UK corporation tax arose on ordinary activities for the year
ended 31 December 2025, or for the year ended 31 December 2024.
In April 2023, the rate of corporation tax rose to 25% for profits over
£250,000.
The Group has not recognised a deferred tax asset due to the uncertainty over
when the tax losses can be utilised. At the year end, the usable tax losses
within the Group were approximately £63 million (2024: £62 million).
9. Loss Per Share
Basic loss per share is calculated by dividing the losses attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year.
Diluted loss per share is calculated using the weighted average number of
shares adjusted to assume the conversion of all dilutive potential ordinary
shares.
There is no difference between dilutive and ordinary earnings per share due to
there being a loss recorded in the year.
The share options (note 20) issued in the Group that would potentially dilute
earnings per share in the future have not been included in the calculation of
diluted loss per share as their effect would be anti-dilutive.
Loss attributable Weighted
to ordinary shareholders average number Per share
£ of shares Amount
pence
Year ended 31 December 2025
Basic and Diluted EPS
Basic & Diluted (1,711,198) 32,667,467 (5.24)
Year ended 31 December 2024
Basic and Diluted EPS
Basic & Diluted (3,540,274) 32,667,467 (10.84)
10. Intangible assets
Exploration
costs
£
Cost
At 1 January 2024 16,597,038
Additions 838,825
Farm-out (5,519,216)
At 31 December 2024 11,916,647
Additions 131,826
At 31 December 2025 12,048,473
Accumulated Amortisation
At 1 January 2024 175,241
Charge for the year -
At 31 December 2024 175,241
At 31 December 2025 175,241
Net Book Value
At 31 December 2025 11,873,232
At 31 December 2024 11,741,406
Additions represent the work capitalised on the Buchan redevelopment assets.
At the start of 2023 the Company owned 100% interests in two licenses: P2498
containing the Buchan field and J2 Discovery, and P2170 containing the Verbier
discovery. At the end of 2023 the costs incurred in acquiring and
advancing the licenses to their then current state was £25,700,982 (2022:
£24,548,122). During 2023 a farm-out of a 50% interest in both licenses to
NEO was completed and in 2024 a farm out of a 30% interest in both licenses to
Serica was completed. Both deals had similar terms whereby in exchange for the
farm in, the respective parties agreed to a series of cash payments and both a
pre-development and development carry on the Buchan Redevelopment project. In
accordance with our farm-out policy for assets at that stage of development,
the cash proceeds of £5,519,216 in 2024 and £9,103,944 in 2023 were both
deducted from the carrying value of the assets.
In line with the requirements of IFRS 6, we have considered whether there are
any indicators of impairment on the exploration and development assets.
Based on our assessment, as at 31 December 2025 there were deemed to be no
indicators that the licences are not commercial and that the carrying value of
£11,873,232 continues to be supported by ongoing, be it reduced, development
work on the licence areas with no impairments considered necessary. It is
noted that increases in North Sea taxes which came into effect in 2024
contributed to the lapsing of the contractual agreement to purchase the
Western Isles FPSO in the first quarter of 2025. As a result, project sanction
will require the joint venture to re-contract this FPSO or secure another
suitable development option.
11. Property, Plant and Equipment
Computer and office equipment
£
Cost
At 1 January 2024 228,447
Additions 2,363
At 31 December 2024 230,810
Additions -
At 31 December 2025 230,810
Accumulated Depreciation
At 1 January 2024 228,447
Charge for the year 688
At 31 December 2024 229,135
Charge for the year 750
At 31 December 2025 229,885
Net Book Value
At 31 December 2025 925
At 31 December 2024 1,675
12. Leases
Amounts Recognised in the Statement of financial position
2025 2024
£ £
Right-of-use Assets
Buildings 27,932 83,797
27,932 83,797
Lease liabilities
Current 14,475 56,723
Non-Current - 14,585
14,475 71,308
The liabilities were measured at the present value of the remaining lease
payments, discounted using the lessee's incremental borrowing rate as of 1
January 2019. The weighted average lessee's incremental borrowing rate applied
to the lease liabilities on 1 January 2019 was 3%. The borrowing rate applied
for 2025 remained at 3% and the leases relate to office space.
A new lease agreement was entered into in June 2023 for a total of 9 years
with break clauses after 3 and 6 years. The interest rate implicit in the
agreement was 3% over the Bank of England's base rate. Given the 3-year break
clause and the future plans for the business it was deemed appropriate to
recognise the liability relating to a 3-year period. This lease was in
relation to an office in Jersey.
Amounts Recognised in the Statement of comprehensive income
2025 2024
£ £
Depreciation charge of right-of-use asset
Buildings 55,864 55,864
55,864 55,864
Interest expenses (included in finance cost) (1,508) (3,185)
13. Trade and other receivables
2025 2024
£ £
Current:
Office deposits 17,466 -
Other receivables 29 29
Value added tax 15,178 18,769
Prepayments 55,446 67,934
88,119 86,732
14. Cash and cash equivalents
2025 2024
£ £
Cash in bank accounts 723,203 6,185,872
The cash balances are placed with creditworthy financial institutions with a
minimum rating of 'A'.
15. Term deposits
2025 2024
£ £
Maturing within ten months 10,300,000 6,150,000
Term deposits are placed with creditworthy financial institutions with a
minimum rating of 'A'. The maturity periods of the term deposits range from
three to ten months from the original date of deposit.
Issued: Nominal 2025 2024
Number: Class value £ £
32,667,627 (2024: 32,667,627) Ordinary 1p 326,676 326,676
2,271,694 (2024: 2,271,694) Deferred shares 99p 99 2,248,977 2,248,977
16. Called up share capital
Ordinary shares have a par value of 1p. They entitle the holder to participate
in dividends, distributions or other participation in the profits of the
Company in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting, in
person or by proxy, is entitled to one vote, and on a poll each share is
entitled to one vote.
17. Trade and other payables
2025 2024
£ £
Current:
Trade payables 31,088 44,028
Accrued expenses 170,939 237,075
Taxation and Social Security 23,489 32,108
225,516 313,211
18. Lease liabilities
2025 2024
£ £
Non-Current
Lease Liabilities - 14,585
- 14,585
19. Contingent Liabilities
(i) 2015 settlement agreement with Athena Consortium: In accordance
with a 2015 settlement agreement reached with the Athena Consortium, although
Jersey Petroleum Ltd remains a Licensee in the joint venture, any past or
future liabilities in respect of its interest can only be satisfied from the
Group's share of the revenue that the Athena Oil Field generates and up to 60
per cent. of net disposal proceeds or net petroleum profits from the Group's
interest in the P2170 licence which is the only remaining asset still held
that was in the Group at the time of the agreement with the Athena Consortium
who hold security over this asset. Any future repayments, capped at the unpaid
liability associated with the Athena Oil Field, cannot be calculated with any
certainty, and any remaining liability still in existence once the Athena Oil
Field has been decommissioned will be written off. A payment was made in 2016
to the Athena Consortium in line with this agreement following the farm-out of
P2170 (Verbier) to Equinor and the subsequent receipt of monies relating to
that farm-out.
(ii) Equinor UK Limited: During 2020, JOG announced that it had
entered into a conditional Sale and Purchase Agreement ("SPA") to acquire
operatorship of, and an additional 70% working interest in Licence P2170
(Blocks 20/5b and 21/1d) from Equinor UK Limited ("Equinor"), this transaction
completed in May 2020. The consideration for the acquisition consisted
of two milestone payments, which will be accounted for in line with the cost
accumulation model, as opposed to contingent liabilities:
§ US$3 million upon sanctioning by the UK's North Sea Transition Authority
("NSTA") of a Field Development Plan ("FDP") in respect of the Verbier Field;
and
§ US$5 million upon first oil from the Verbier Field.
The earliest of the milestone payments in respect of the acquisition is not
currently anticipated being payable before the start of 2030.
(iii) ITOCHU Corporation and Japan Oil, Gas and Metals National
Corporation: During 2020, JOG announced that it had entered into a conditional
Sale and Purchase Agreement ("SPA") to acquire the entire issued share capital
of CIECO V&C (UK) Limited, which was owned by ITOCHU Corporation and Japan
Oil, Gas and Metals National Corporation, this transaction completed in April
2021. The acquisition was treated as an asset acquisition rather than a
business combination due to the nature of the asset acquired. There were no
assets or liabilities acquired other than the 12% interest in licence P2170
(Verbier). The consideration for the acquisition included a completion payment
of £150k and two future milestone payments, which are considered contingent
liabilities:
§ £1.5 million in cash upon consent from the UK's North Sea Transition
Authority ("NSTA") for a Field Development Plan ("FDP") in respect of the
Verbier discovery in the Upper Jurassic (J62-J64) Burns Sandstone reservoir
located on Licence P2170; and
§ £1 million in cash payable not later than one year after first oil from
all or any part of the area which is the subject of the FDP.
The earliest of the milestone payments in respect of the acquisition is not
currently anticipated being payable before the start of 2030.
20. Share based payments
The Group operates several share options schemes. Options are exercisable at
the prices set out in the table below. Options are forfeited if the employee
leaves the Group through resignation or dismissal before the options vest.
Equity settled share-based payments are measured at fair value at the date of
grant and expensed on a straight-line basis over the vesting period, based
upon the Group's estimate of the number of shares that will eventually vest.
The Group's share option schemes are for Directors, Officers and employees.
The charge for the year was £602,190 (2024: £764,774) and details of
outstanding options are set out in the table below.
Date of Grant Exercise price (pence) Vesting date Expiry date No. of shares for which options outstanding at 1 Jan 2025 Options issued Options Exercised Options lapsed/non vesting during the year No. of shares for which options outstanding at 31 Dec 2025
Jan-18 200 Jan-21 Jan-25 360,000 - - (360,000) -
Nov-18 172 Nov-21 Nov-25 150,000 - - (150,000) -
Jan-19 175 Jan-20 Jan-26 88,332 - - - 88,332
Jan-19 175 Jan-21 Jan-26 84,999 - - - 84,999
Jan-19 175 Jan-22 Jan-26 71,668 - - - 71,668
Jun-19 200 Jan-21 Jun-29 120,000 - - - 120,000
Jun-19 110 Jun-19 Jun-29 40,000 - - - 40,000
Jan-21 155 Jan-22 Jan-28 83,333 - - - 83,333
Jan-21 155 Jan-23 Jan-28 75,000 - - - 75,000
Jan-21 155 Jan-24 Jan-28 60,000 - - - 60,000
Mar-21 210 Mar-22 Mar-26 11,666 - - - 11,666
Mar-21 210 Mar-23 Mar-26 11,667 - - - 11,667
Mar-21 210 Mar-24 Mar-26 11,667 - - - 11,667
Mar-21 210 Mar-22 Mar-28 130,001 - - - 130,001
Mar-21 210 Mar-23 Mar-28 86,666 - - - 86,666
Mar-21 210 Mar-24 Mar-28 78,333 - - - 78,333
Nov-21 147 Nov-22 Nov-28 233,334 - - - 233,334
Nov-21 147 Nov-23 Nov-28 233,333 - - - 233,333
Nov-21 147 Nov-24 Nov-28 233,333 - - - 233,333
Apr-22 230 Apr-23 Apr-29 278,333 - - - 278,333
Apr-22 230 Apr-24 Apr-29 268,333 - - - 268,333
Apr-22 230 Apr-25 Apr-29 260,000 - - - 260,000
Apr-22 230 Apr-23 Apr-27 45,000 - - - 45,000
Apr-22 230 Apr-24 Apr-27 45,000 - - - 45,000
Apr-22 230 Apr-25 Apr-27 45,000 - - (10,000) 35,000
Apr-23 247.5 Apr-24 Apr-30 169,167 - - - 169,167
Apr-23 247.5 Apr-25 Apr-30 163,334 - - - 163,334
Apr-23 247.5 Apr-26 Apr-30 163,333 - - - 163,333
Apr-23 247.5 Apr-24 Apr-28 28,334 - - - 28,334
Apr-23 247.5 Apr-25 Apr-28 28,333 - - (6,666) 21,667
Apr-23 247.5 Apr-26 Apr-28 28,333 - - (6,666) 21,667
Mar-25 82.5 Mar 26 Mar 30 - 30,000 - - 30,000
Mar-25 82.5 Mar 27 Mar 30 - 30,000 - - 30,000
Mar-25 82.5 Mar 28 Mar 30 - 30,000 - - 30,000
Mar-25 82.5 Mar 26 Mar 32 - 228,333 - - 228,333
Mar-25 82.5 Mar 27 Mar 32 - 228,333 - - 228,333
Mar-25 82.5 Mar 28 Mar 32 - 228,334 - - 228,334
Total 3,927,500
The weighted average value of the options granted during the year was
determined using a Black-Scholes valuation. The significant inputs into the
model were the mid-market share price on the day of grant as shown above and
an annual risk-free interest rate ranging between 4.6% and 4.8%. The
volatility measured at the standard deviation of continuously compounded share
returns is based on a statistical analysis of daily share prices from over a
four-year period. The weighted average exercise price for the options granted
in 2025 was 82.50 pence, the weighted average remaining contractual life of
the options was 6 years (for all schemes 3 years), the weighted average
volatility rate was 104% and the dividend yield was nil. During the year
360,000 share options from the January 2018 issuance and 150,000 from the
November 2018 issuance expired, these had an exercise price of 200 pence and
172 pence, respectively. A further 23,332 share options were forfeited due
to the departure of employees, these had a weighted exercise price of 240
pence. The weighted average exercise price for all outstanding options at 31
December 2025 was 177 pence and the remaining contractual life was 3 years.
For details of the schemes and scheme rules, please refer to the Remuneration
Report.
21. Related undertakings and ultimate controlling party
The Group and Company do not have an ultimate controlling party.
Country of Incorporation
Subsidiary % owned Principal Activity Registered Office
Jersey North Sea Holdings Ltd 100% England & Wales Non-Trading 1
Jersey Petroleum Ltd 100% England & Wales Oil Exploration 1
Jersey V&C Ltd 100% England & Wales Oil Exploration 5
Sunny Day 123 Ltd* 100% England & Wales Oil Exploration 4
Jersey E & P Ltd** 100% Scotland Non-Trading 2
Jersey Oil Ltd** 100% Scotland Non-Trading 2
Jersey Exploration Ltd** 100% Scotland Non-Trading 2
Jersey Oil & Gas E & P Ltd 100% Jersey Management services 3
*Dissolved 25 February 2025
**Dissolved 11 February 2025
Registered Offices
1. 71-75 Shelton Street, Covent Garden, London WC2H 9JQ
2. 7 Queen's Gardens, Aberdeen, Scotland AB15 4YD
3. First Floor, Tower House, La Route es Nouaux, St Helier,
Jersey JE2 4ZJ
4. 10, The Triangle, NG2 Business Park Nottingham,
Nottinghamshire NG2 1AE
5. 67 Gowrie Road, London SW11 5NN
22. Notes to the consolidated statement of cash flows
Reconciliation of Loss Before Tax to Cash Used in Operations
2025 2024
£ £
Loss for the year before tax (1,711,198) (3,540,274)
Adjusted for:
Depreciation 750 688
Depreciation right-of-use asset 55,864 55,864
Share-based payments 602,190 764,774
Finance costs 2,383 3,185
Finance income (460,425) (542,637)
(1,510,436) (3,258,400)
Decrease in trade and other receivables 3,507 428,691
Decrease in trade and other payables (58,767) (530,054)
Cash used in operations (1,565,696) (3,359,763)
Cash and cash equivalents
The amounts disclosed on the consolidated Statement of Cash Flows in respect
of Cash and cash equivalents are in respect of these statements of financial
position amounts:
Year ended 2025
31 Dec 2025 01 Jan 2025
£ £
Cash and cash equivalents 723,203 6,185,872
Year ended 2024
31 Dec 2024 01 Jan 2024
£ £
Cash and cash equivalents 6,185,872 5,482,935
Analysis of net cash
At 1 Jan 2025 Cash outflow At 31 Dec 2025
£ £ £
Cash and cash equivalents 6,185,872 (5,462,669) 723,203
Net cash 6,185,872 (5,462,669) 723,203
23. Post balance sheet events
After the reporting date, geopolitical events have increased volatility in
global oil markets; the Group continues to monitor developments but does not
currently expect any significant impact on its operations or strategy.
24. Availability of the annual report 2025
A copy of this report will be made available for inspection at the Company's
registered office during normal business hours on any weekday. The Company's
registered office is at 71-75 Shelton Street, Covent Garden, London WC2H 9JQ.
A copy can also be downloaded from the Company's website at
www.jerseyoilandgas.com (http://www.jerseyoilandgas.com) . Jersey Oil and Gas
Plc is registered in England and Wales, with registration number 7503957.
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