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REG - Jersey Oil & Gas PLC - GBA Farm-Out Completion

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RNS Number : 5126D  Jersey Oil and Gas PLC  22 June 2023

22 June 2023

 

Jersey Oil and Gas plc

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

 

GBA Farm-Out Completion

 

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 that it has completed the farm-out transaction with NEO Energy
("NEO").  The companies each now hold a 50% interest in the licences that
comprise the Greater Buchan Area ("GBA"), being P2498 ("Buchan") and P2170
("Verbier"), with NEO set to become the operator as part of the transaction.

 

The Company is also pleased to report that the GBA partners are well advanced
with selection of the Buchan re-development solution and it expects to be able
to provide an update on this shortly.

 

Farm-Out Transaction Summary

As previously announced, in exchange for entering into the agreements to
divest a 50% working interest and operatorship in the GBA licences to NEO, the
Company will receive:

§ $2 million cash payment on completion of the transaction - now received

§ a full carry for JOG's 50% share of the estimated $25 million cost to take
the Buchan field through to Field Development Plan ("FDP") approval

§ $9.4 million cash payment upon finalisation of the GBA development solution

§ $12.5 million cash payment on approval of the Buchan FDP by the North Sea
Transition Authority ("NSTA")

§ a 12.5% carry of the Buchan field development costs included in the FDP
approved by the NSTA; equivalent to a 1.25 carry ratio

§ $5 million cash payment on each FDP approval by the NSTA in respect of the
J2 and Verbier oil discoveries

 

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

"We are delighted to have completed the farm-out transaction and to be swiftly
moving forwards with finalisation of the GBA development solution.  With the
route and the funding secured for preparation of the Buchan Field Development
Plan, our attention now turns to unlocking further value by securing an
additional GBA partner ahead of FDP approval and retaining a fully carried
20-25% interest in the development programme."

 

 

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

 finnCap Ltd             Christopher Raggett  Tel: 020 7220 0500

                         Tim Redfern

 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 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 and other
exploration prospects.

 

JOG is focused on delivering shareholder value and growth through creative
deal-making, operational success and licensing rounds. Its management is
convinced that opportunity exists 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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