REG - Jersey Oil & Gas PLC - Interim Results
04/09/2025 07:00
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RNS Number : 9344X Jersey Oil and Gas PLC 04 September 2025
4 September 2025
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Interim Results for the Six Month Period Ended 30 June 2025
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 unaudited Interim Results for the six month period ended 30 June
2025.
Highlights & Outlook
§ Significant engagement undertaken with the UK government and industry
bodies concerning the regulatory and fiscal consultations that will impact
the long-term direction of the UK North Sea oil and gas industry
§ Work underway to prepare the necessary addendum to the Buchan Horst
("Buchan") Environmental Impact Assessment resulting from the revised guidance
issued by the Offshore Petroleum Regulator for the Environment and
Decommissioning regarding the inclusion of Scope 3 emissions
§ Continued progress made with a number of pre-sanction technical and
commercial workstreams, including subsurface modelling studies, the
specification of the optimal drilling completion plan for the requisite
production wells and the agreement of commercial terms for the utilisation of
gas export infrastructure
§ While the agreement to acquire the "Western Isles" floating production,
storage and offloading ("FPSO") vessel was terminated by Dana Petroleum after
reaching its longstop date in March 2025, the possibility remains to
recontract the vessel at an appropriate time, with NEO NEXT Energy remaining a
23% owner of the FPSO vessel
§ Second Term of the Buchan P2498 licence extended by 24 months to 28
February 2027. The extension was requested to provide JOG and its joint
venture partners with the time required to finalise the Buchan Field
Development Plan
§ Solid financial position, with cash at the end of H1-2025 of £11.3 million
and the total annualised running cost of the business reduced by approximately
50% to an expected £1.5 million
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"Against a challenging backdrop where the North Sea oil and gas industry has
been unnecessarily damaged by the 78% EPL tax rate, we have positioned the
Company to withstand the on-going fiscal and regulatory uncertainty by halving
the cost base and maintaining a strong cash position.
We hold an interest in a potentially incredible prize in the form of our
carried interest to first oil on the Buchan redevelopment project. This has
the potential to unlock significant UK investment, create over 1,000 well paid
jobs and ultimately realise hundreds of millions in future tax payments to the
exchequer. We urge the government to complete its consultation process on
the future fiscal regime and remove the EPL in order to establish a playing
field that facilitates future investments. Homegrown energy should be
prioritised over more carbon intensive energy imports and with Buchan, we have
a great opportunity to be at the forefront of championing a fully integrated
production hub that aligns with the industry's decarbonisation strategy."
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 AND CHIEF EXECUTIVE OFFICER'S REPORT
Following the progress made in 2023 and 2024 to advance the Buchan Horst
("Buchan") redevelopment project towards sanction and Field Development Plan
("FDP") approval, the first half of this year has involved a concerted effort
to engage with the UK government on the future of the UK North Sea and the
fundamentals required to maximise the long term value of the oil and gas
industry for the benefit of all. This engagement has been driven by the
three public consultations that have been launched by the government since
taking office in July 2024 concerning the inclusion of "Scope 3" emissions in
environmental impact assessments ("EIAs"), the future for UK North Sea oil and
gas licensing and the long-term fiscal regime.
Our team has worked closely with our Buchan joint venture partners, NEO NEXT
Energy ("NEO") and Serica Energy ("Serica"), and industry trade bodies to
shape our responses to the public consultations. We are encouraged that the
government has now issued new guidelines for EIA submissions and this should
pave the way for new development projects like Buchan to secure formal
approval following over a year of regulatory inactivity. This will naturally
require an addendum to the previously submitted Buchan EIA to be issued to the
Offshore Petroleum Regulator for the Environment and Decommissioning ("OPRED")
as part of the overall regulatory process required to reach FDP approval.
While clarity has been obtained on the environmental guidelines for new
developments, the conclusions to the fiscal and licensing consultations remain
outstanding. Most significantly, it is the outcome of the fiscal
consultation that will dictate the ability of the joint venture to progress
Buchan towards project sanction and FDP approval
Development Activities
The uncertainties created by the various abovementioned fiscal and regulatory
consultations resulted in a slowdown in the Buchan redevelopment project's
activities in 2024. Nevertheless, targeted activities have continued during
the first half of 2025, with a key focus being on how to incorporate Scope 3
emissions into the Buchan environmental statement. The joint venture has
been working with Genesis, a leading energy consulting company that supported
the initial regulatory submission, to undertake the necessary additional
preparatory work. A number of other technical and commercial workflows have
also been progressed throughout the period, including the continuation of
subsurface modelling studies, the specification of the optimal drilling
completion plan for the requisite production wells and the agreement of
commercial terms for the utilisation of gas export infrastructure. Alongside
the preparation of the environmental statement addendum, work is also
scheduled to commence on value engineering opportunities and optimisations
around the forecast capital expenditure for the project. This represents an
important element of the assurance and peer review processes that the joint
venture undertakes as part of the project sanction and regulatory approval
activities.
In light of the project delays created by the various consultations, an
extension to the Buchan P2498 licence was obtained from the North Sea
Transition Authority ("NSTA") earlier in the year. The extension gives the
joint venture until 28 February 2027 to obtain Field Development Plan ("FDP")
approval.
Given the uncertainty surrounding the timing of FDP approval, the agreement
for the acquisition of the "Western Isles" floating production, storage and
offloading ("FPSO") vessel for redeployment on the Buchan field was terminated
in March 2025 by Dana Petroleum after the longstop date in the agreement was
passed. NEO, Buchan's Operator, is a 23% owner of the vessel and the
possibility remains to recontract the vessel at the appropriate time for
deployment on Buchan. The vessel remains anchored in Scapa Flow in the
Orkney Isles, having departed the Western Isles field location in summer 2024.
Subject to satisfactory clarity being obtained from the government
consultations, there are clear steps that need to be completed to move the
Buchan project forward to FDP approval and onward thereafter into the
development execution phase of activities. These are:
§ Reactivation and completion of the contract tender process for the main
drilling, subsea and FPSO modification workscopes
§ Re-contracting of the FPSO
§ Submission to OPRED of an updated EIA that incorporates the requirements of
the recently issued guidance concerning the inclusion of Scope 3 emission
forecasts for the project
§ Joint venture finalisation of the FDP and approval of the NSTA
While the exact timeline for completing these activities has not yet been
finalised, it is likely that a positive outcome from the consultations would
lead to FDP approval being targeted during 2026.
Support for Domestic Industry
The facts point time and time again to a balanced energy system providing the
best solution to our country's energy security. Unfortunately, the net zero
debate has become polarised, unnecessarily pitting domestic hydrocarbons
against green alternatives - the stark reality is that we need it all to
satisfy the country's energy demands and minimise hydrocarbon imports.
In the case of Buchan, the project has the potential to contribute
approximately 70 million barrels of oil equivalent ("Mmboe") to future North
Sea production. Importantly, it also provides the opportunity to unlock
capital investment of around £1 billion into the UK economy, create over
1,000 well paid jobs across the UK, generate a new energy hub that helps
facilitate investment into a major new floating offshore wind project and pay
hundreds of millions in tax to the Exchequer. It is therefore hoped that the
positive economic impact that Buchan, and potential other North Sea projects
like it, can have on the UK, will be recognised in the actions of the
government as it works to close out its on-going fiscal and regulatory
consultations over the coming months. The UK needs economic growth and a
project like Buchan would be particularly accretive to the economy for years
to come.
The fiscal consultation is of critical importance to our project and we are
hopeful of seeing clarity on this aspect during the Autumn Statement. The
alternative oil and gas pricing mechanisms that have been tabled as a
replacement for the Energy Profits Levy ("EPL"), which punitively taxes all
profits at 78%, sets a threshold price above which a windfall tax would be
charged. While the mechanisms being considered are workable alternatives,
the key elements concerning the actual commodity prices at which the
additional tax would kick in, and the level of the tax itself, are yet to be
defined. We are far from being in a windfall commodity price environment, as
has been reflected in other countries which imposed similar windfall taxes
after Russia's invasion of Ukraine in February 2022 and have now removed
them. To mitigate some of the damage the EPL has already done, industry is
urging the government to replace it with the mechanism resulting from the
current consultation rather than waiting until 2030 when it is currently
scheduled to fall away.
Solid Financial Position
Financially the Group is strongly positioned with total cash reserves at the
end of H1 2025 of £11.3 million and no debt.
The total annualised cash running cost of the business has been reduced by
approximately 50% to an expected £1.5 million. In addition to cutting
corporate and operational costs, all staff and Directors' salaries have been
reduced by 50% to reflect the slowdown in Buchan project activities at this
time.
As a result of the terms of the farm-out agreements executed with NEO and
Serica, the Company's 20% share of Buchan project expenditure is fully carried
by our two joint venture partners, based on the approved FDP budget. A
further $20 million in cash is receivable under the terms of the farm-out
agreements following approval of the Buchan FDP by the NSTA and receipt of the
associated regulatory and legal consents.
Summary and Outlook
JOG is well placed financially to see through this period of protracted
uncertainty for the industry, however the reduction in investment activity
witnessed across the UK Continental Shelf as a direct result of the EPL is
damaging sentiment and driving investment elsewhere. We urge the government
to remove the EPL as soon as practicable. All forms of domestic energy must
rank above more carbon intensive energy imports and with Buchan, we have a
great opportunity to be at the forefront of championing a fully integrated
production hub that aligns with the industry's decarbonisation strategy.
There is also more for us to do as we seek to grow our business in the North
Sea. To both accelerate potential value creation from the Company's existing
UK tax allowances of over $100 million and bring cash flow into the business,
a number of potential producing asset acquisitions have been pursued and we
continue to be proactive in our efforts to grow the business for the
collective benefit of our shareholders and other stakeholders. We greatly
appreciate and value the support and patience we have received from our
shareholders at this complicated time for the industry.
Les Thomas
Non-Executive Chairman Andrew Benitz
Chief Executive Officer
3 September 2025
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2025
6 months to 6 months to Year to
30/06/25 30/06/24 31/12/24
(unaudited) (unaudited) (audited)
Notes £ £ £
Administrative expenses 4 (938,553) (2,791,954) (4,079,726)
OPERATING LOSS (938,553) (2,791,954) (4,079,726)
Finance income 242,799 171,601 542,637
Finance expense (1,504) (1,799) (3,185)
LOSS BEFORE TAX (697,258) (2,622,152) (3,540,274)
Tax 5 - - -
LOSS FOR THE PERIOD (697,258) (2,622,152) (3,540,274)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (697,258) (2,622,152) (3,540,274)
Total comprehensive loss attributable to:
Owners of the parent (697,258) (2,622,152) (3,540,274)
Loss per share expressed
in pence per share:
Basic 6 (2.13) (8.03) (10.84)
Diluted 6 (2.13) (8.03) (10.84)
The above condensed consolidated statement of comprehensive income should be
read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
30/06/25 30/06/24 31/12/24
(unaudited) (unaudited) (audited)
Notes £ £ £
NON-CURRENT ASSETS
Intangible assets - exploration & development costs 7 11,795,976 11,334,984 11,741,406
Property, plant and equipment 8 1,300 2,050 1,675
Right-of-use assets 12 55,864 111,729 83,797
Deposits 17,466 18,772 17,466
11,870,606 11,467,535 11,844,344
CURRENT ASSETS
Trade and other receivables 9 299,902 314,171 86,732
Cash and cash equivalents 10 834,777 2,031,761 6,185,872
Term deposits 11 10,500,000 11,000,000 6,150,000
11,634,679 13,345,932 12,422,604
TOTAL ASSETS 23,505,285 24,813,467 24,266,948
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 2,574,529 2,574,529 2,574,529
Share premium account 110,535,059 110,535,059 110,535,059
Share options reserve 4,437,142 4,432,875 4,504,673
Accumulated losses (93,805,979) (92,582,254) (93,349,289)
Reorganisation reserve (382,543) (382,543) (382,543)
TOTAL EQUITY 23,358,208 24,577,666 23,882,429
NON-CURRENT LIABILITIES
Lease liabilities 12 - 43,105 14,585
- 43,105 14,585
CURRENT LIABILITIES
Trade and other payables 13 103,973 136,710 313,211
Lease liabilities 12 43,104 55,986 56,723
147,077 192,696 369,934
TOTAL LIABILITIES 147,077 235,800 384,519
TOTAL EQUITY AND LIABILITIES 23,505,285 24,813,467 24,266,948
The above condensed consolidated statement of financial position should be
read in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Called up share Share premium Share options Accumulated Re- organisation Total
capital account reserve losses reserve equity
£ £ £ £ £ £
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
At 1 January 2024 2,574,529 110,535,059 3,890,986 (89,960,102) (382,543) 26,657,929
Loss for the period and total comprehensive income - - - (2,622,152) - (2,622,152)
Share based payments - - - 541,889 - -
541,889
At 30 June 2024 2,574,529 110,535,059 4,432,875 (92,582,254) (382,543) 24,577,666
At 1 January 2025 2,574,529 110,535,059 4,504,673 (93,349,289) (382,543) 23,882,429
Loss for the period and total comprehensive income - - - (697,258) - (697,258)
Expired share options - - - (240,568) 240,568 - -
Share based payments - - - 173,037 - -
173,037
At 30 June 2025 2,574,529 110,535,059 4,437,142 (93,805,979) (382,543) 23,358,208
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 losses in respect of options exercised or cancelled/lapsed
Accumulated losses Cumulative losses recognised in the Condensed Consolidated Statement of
Comprehensive Income
Reorganisation reserve Amounts resulting from the restructuring of the Group at the time of the
Company's Initial Public Offering (IPO) in 2011
The above condensed consolidated statement of changes in equity should be read
in conjunction with the accompanying notes.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2025
6 months to 6 months to Year to
30/06/25 30/06/24 31/12/24
(unaudited) (unaudited) (audited)
Notes £ £ £
CASH FLOWS FROM OPERATING ACTIVITIES
Cash used in operations 14 (860,901) (2,678,054) (3,359,763)
Interest paid (1,504) (1,799) (3,185)
Net cash used in operating activities (862,405) (2,679,853) (3,362,948)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds received from farm-out transaction 7 - 5,519,216 5,519,216
Interest received 46,425 171,601 490,674
Purchase of tangible assets 8 - (2,363) (2,363)
Purchase of intangible assets (156,908) (432,402) (736,487)
Investing cash flows before movements in capital balances (110,483) 5,256,052 5,271,040
Transfers to term deposits (4,350,000) (6,000,000) (1,150,000)
Net cash used in investing activities (4,460,483) (743,948) (4,121,040)
CASH FLOWS FROM FINANCING
ACTIVITIES
Principal elements of lease payments (28,207) (27,372) (55,155)
(28,207) (27,372) (55,155)
Net cash used in financing
activities
(DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS (5,351,095) (3,451,173) 702,937
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 6,185,872 5,482,935 5,482,935
CASH AND CASH EQUIVALENTS AT END OF PERIOD 10 834,777 2,031,761 6,185,872
The above condensed consolidated statement of cash flows should be read in
conjunction with the accompanying notes.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 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.
The reporting period for the Group's condensed consolidated interim financial
statements is the six-month period from 1 January 2025 to 30 June 2025, which
were authorised for issue in accordance with a resolution of the Board of
Directors on 3 September 2025.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The interim condensed consolidated financial statements for the six months
ended 30 June 2025 were prepared in conformity with the requirements of the
Companies Act 2006 (the "Companies Act").
These unaudited interim condensed consolidated financial statements of the
Group have been prepared following the same accounting policies and methods of
computation as the consolidated financial statements for the year ended 31
December 2024. These unaudited interim condensed consolidated financial
statements do not include all the information and footnotes required by
generally accepted accounting principles for annual financial statements and
therefore should be read in conjunction with the consolidated financial
statements and the notes thereto in the Company's annual report for the year
ended 31 December 2024.
The financial information contained herein does not constitute statutory
financial statements within the meaning of section 434 of the Companies Act
2006.
Consolidated statutory accounts for the year ended 31 December 2024, on which
the auditors gave an unqualified audit report, have been filed with the
Registrar of Companies.
The Group's financial statements have been prepared under the historic cost
convention. The interim condensed consolidated financial statements are
presented in Sterling, which is also the Group's functional currency.
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 condensed
consolidated interim financial statements. The Company's current cash reserves
are expected to more than exceed its estimated cash outflows in all reasonable
scenarios for at least 12 months following the date of issue of these
condensed consolidated interim financial statements. Even in a scenario where
the Buchan redevelopment project did not progress for whatever reason(s) and
the future farm-out instalment payments were not realised the Group has the
funds to continue in business beyond the next 12 months solely from
utilisation of its existing cash resources. The directors have also considered
the risk associated with contractual arrangements associated with progression
of the Buchan redevelopment project 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 condensed consolidated interim financial
statements.
Accounting policies
The accounting policies adopted in the preparation of the condensed
consolidated interim financial statements are consistent with those followed
in the preparation of the Group's latest audited annual financial statements
for the year ended 31 December 2024.
The impact of seasonality or cyclicality on operations is not considered
significant on the condensed consolidated interim financial statements.
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 as a whole is the Group's chief operating decision maker within the
meaning of IFRS 8 "Operating Segments".
During the period to 30 June 2025 and during the year ended 31 December 2024
the Group had no revenue.
4. ADMINISTRATIVE EXPENSES
The following significant costs are included:
30/06/25 30/06/24
(unaudited) (unaudited)
£ £
Third Party Transaction Fees / Bonuses - 1,187,661
Non-Cash Share Based Payments (net) (67,531) 541,889
The H1 2024 Transaction Fees/Bonuses include payments of £490,000 to the
Executive Directors earned because of the Serica Farm-out and settled
conditional upon deal completion. Non-Cash Share Based Payments decreased in
H1 2025 mainly due to share options issued to Directors in January 2018
expiring in January 2025.
5. TAX
Jersey Oil and Gas plc is a trading company but no liability to UK corporation
tax arose on its ordinary activities for the period ended 30 June 2025 due to
trading losses. As at 31 December 2024, the Group held tax losses of
approximately £62m (2023: £63m).
6. EARNINGS/(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 period.
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 basic loss per share due to there
being a loss recorded in the period.
The share options 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.
Losses attributable to ordinary shareholders Weighted average number of shares Per share amount
Pence
£
Period ended 30 June 2025
Basic and Diluted EPS
Loss attributable to ordinary shareholders (697,258) 32,667,627 (2.13)
7. INTANGIBLE ASSETS
Exploration
Costs
£
COST
At 1 January 2025 11,916,647
Additions 54,570
At 30 June 2025 11,971,217
ACCUMULATED AMORTISATION
At 1 January 2025 175,241
At 30 June 2025 175,241
CARRYING AMOUNT 30 June 2025 11,795,976
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 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 30 June 2025 there were not deemed to be
indicators that the licences are not commercial and that the carrying value of
£11,795,976 continues to be supported by ongoing development work on the
licence areas with no impairments considered necessary. It is noted that
increases in North Sea taxes in 2024 together with further fiscal instability
created by the ongoing government consultation has increased uncertainty
around the timing of potential sanction of the Buchan redevelopment project by
the Joint Venture.
8. PROPERTY, PLANT AND EQUIPMENT
Computer
and office
equipment
£
COST
At 1 January 2025 230,810
Additions -
At 30 June 2025 230,810
ACCUMULATED AMORTISATION, DEPLETION AND DEPRECIATION
At 1 January 2025 229,135
Charge for period 375
At 30 June 2025 229,510
CARRYING AMOUNT 30 June 2025 1,300
9. TRADE AND OTHER RECEIVABLES
30/06/25 30/06/24 31/12/24
(unaudited) (unaudited) (audited)
£ £ £
Other receivables 30 48,687 29
Prepayments and accrued income 267,491 218,572 67,934
Value added tax 32,381 46,912 18,769
299,902 314,171 86,732
As at 30 June 2025, there were no trade receivables past due nor impaired.
There are immaterial expected credit losses recognised on these balances.
10. CASH AND CASH EQUIVALENTS
The amounts disclosed in the condensed consolidated statement of cash flows in
respect of cash and cash equivalents are in respect of these consolidated
statement of financial position amounts:
30/06/25 30/06/24 31/12/24
(unaudited) (unaudited) (audited)
£ £ £
Cash and cash equivalents 834,777 6,185,872
2,031,761
The cash balances are placed with creditworthy financial institutions with a
minimum rating of 'A'.
11. TERM DEPOSITS
30/06/25 30/06/24 31/12/24
(unaudited) (unaudited) (audited)
£ £ £
Maturing within six months 10,500,000 6,150,000
11,000,000
Term deposits are placed with a creditworthy financial institution with a
minimum rating of 'A'
12. LEASES
Amounts recognised in the statement of financial position:.
30/06/25 30/06/24 31/12/24
(unaudited) (unaudited) (audited)
Right-of-use Assets £ £ £
Buildings 55,864 111,729 83,797
55,864 111,729 83,797
30/06/24 30/06/24 31/12/24
Lease liabilities (unaudited) (unaudited) (audited)
£ £ £
Current 43,104 55,986 56,723
Non-current - 43,105 14,585
43,104 99,091 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. 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.
Amounts recognised in the statement of comprehensive income:
30/06/25 30/06/24 31/12/24
(unaudited) (unaudited) (audited)
£ £ £
Depreciation charge of right-of-use asset
Buildings 27,932 27,932 55,864
27,932 27,932 55,864
30/06/25 30/06/24 31/12/24
(unaudited) (unaudited) (audited)
£ £ £
Interest expenses (included in finance cost)
Buildings (968) (1,799) (3,185)
(968) (1,799) (3,185)
13. TRADE AND OTHER PAYABLES
30/06/25 30/06/24 31/12/24
(unaudited) (unaudited) (audited)
£ £ £
Trade payables 56,468 59,920 44,028
Accrued expenses 17,666 16,024 237,075
Taxation and Social Security 21,334 50,086 32,108
Other payables 8,505 10,680 -
103,973 136,710 313,211
14. NOTES TO THE CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS
RECONCILIATION OF LOSS BEFORE TAX TO CASH USED IN OPERATIONS
30/06/25 30/06/24 31/12/24
(unaudited) (unaudited) (audited)
£ £ £
Loss for the period before tax (697,258) (2,622,152) (3,540,274)
Adjusted for:
Depreciation 375 313 688
Depreciation on right-of-use asset 27,932 27,932 55,864
Share based payments 173,038 541,889 764,774
Finance costs 1,504 1,799 3,185
Finance income (242,799) (171,601) (542,637)
(737,208) (2,221,820) (3,258,400)
Decrease/(increase) in trade and other receivables (16,796) 147,983 428,691
Decrease in trade and other payables (106,897) (604,217) (530,054)
Cash used in operations (860,901) (2,678,054) (3,359,763)
15. POST BALANCE SHEET EVENTS
None.
16. AVAILABILITY OF THE INTERIM REPORT 2025
A copy of these results 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. Jersey Oil and Gas plc is registered in England and
Wales with registration number 7503957.
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