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

Jersey Oil and GasAnnouncement

26/02/2024 07:00

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RNS Number : 3513E  Jersey Oil and Gas PLC  26 February 2024

26 February 2024

 

Jersey Oil and Gas plc

("JOG" or the "Company")

 

GBA Farm-Out Completion

 

Jersey Oil & Gas plc (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, further to the press release issued on 23 November
2023, the Company has now completed its farm-out of a 30% interest in the
Greater Buchan Area ("GBA") licences to Serica Energy (UK) Limited ("Serica
Energy") and received the associated milestone cash payment of $6.8 million.

 

The GBA comprises licences P2498 ('Buchan') and P2170 ('Verbier'), with the
joint venture partnership now consisting of NEO Energy (50% interest,
Operator), Serica Energy (30% interest) and JOG (20% interest).

 

In aggregate the GBA farm-out transactions provide JOG with up to $38 million
in cash payments ($18 million of which has now been received) and a full carry
on both pre-sanction costs and capital expenditure in the approved Buchan
Field Development Plan.

 

 

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 -

 

Further Information:

The cash paid by Serica Energy at completion totalled $7.5 million, of which
$0.7 million is associated with a portion of the costs incurred by NEO Energy
("NEO") on JOG's behalf since the 1 April 2023 economic effective date of the
transaction. This amount will be paid to NEO by JOG.  The net cash payment to
JOG is therefore $6.8 million.

 

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 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." Licence P2498 contains the Buchan oil field and J2 oil discovery
and licence P2170 contains the Verbier oil discovery.

 

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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