REG - Jersey Oil & Gas PLC - AGM Update

Jersey Oil and GasAnnouncement

05/06/2024 07:00

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RNS Number : 1262R  Jersey Oil and Gas PLC  05 June 2024

5 June 2024

 

Jersey Oil and Gas plc

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

 

AGM Update

 

Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company
‎focused on the UK Continental Shelf region of the North Sea, is pleased to
provide the following update on the Buchan redevelopment project ahead of
today's Annual General Meeting ("AGM").

 

Following the announcement of an earlier than expected UK General Election in
July 2024, the Buchan joint venture partners have assessed the implications
and their plan for progressing the project.  While activities continue in
order for the Buchan project to be ready for Field Development Plan ("FDP")
approval by the end of this year, the exact timing for achieving this key
milestone and enabling project sanction is naturally linked to securing fiscal
clarity from the next government and ensuring that the project remains
financially attractive.

 

The Buchan Operator, NEO Energy, continues to make good progress on advancing
the work programme required to enable project sanction.  Completion of the
necessary engineering work is on track and the first offshore survey was
completed in May, obtaining the geophysical data used for the subsea and
drilling rig contract tendering process.  A second survey to obtain
geotechnical data is scheduled to commence this month.  Work is also
advancing on completion of the other two key remaining workstreams, being the
subsurface studies required to finalise the drilling programme and operational
verification and preparation for the handover of the "Western Isles" floating
production, storage and offloading vessel ("FPSO") to the Buchan joint
venture.  Alongside these activities, engagement on the Buchan FDP and
associated regulatory consents is progressing to plan with the North Sea
Transition Authority ("NSTA") and the Offshore Petroleum Regulator for the
Environment and Decommissioning.

 

Following the receipt of fiscal clarity and subject to FDP approval, the major
contract awards and capital commitments for the project are now expected in
2025, which leads to Buchan first production being targeted for late 2027.
 Under the current fiscal policy, the Company's valuation of the Buchan
redevelopment project does not materially change as a result of the later
first production date.

 

JOG remains fully funded with a current cash position of over £13 million and
a forecast annual base cash spend of £3 million. The Buchan project remains
fully carried to FDP with a further $20 million payment due following approval
by the NSTA of the Buchan FDP and receipt of the associated regulatory and
legal consents. The Company also has a full carry to first oil for its 20%
equity interest in the Buchan field development costs, which are to be
approved in the FDP.

 

Andrew Benitz, Chief Executive Officer, commented:

"With a UK General Election now announced, we are hopeful that fiscal clarity
will be forthcoming in short order so that the industry can continue to do
what it does best, namely investing in major capital projects that deliver
vital low carbon homegrown energy and highly skilled jobs.  In the case of
the Buchan field, we have a project that will deliver a meaningful
contribution to the energy transition process through our electrification
strategy, which helps facilitate investment in cutting-edge floating offshore
wind."

 

 

 

Enquiries:

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

                                                         020 3757 4980

 Strand Hanson Limited              James Harris         Tel: 020 7409 3494

                                    Matthew Chandler

                                    James Bellman

 Zeus Capital Limited               Simon Johnson        Tel: 020 3829 5000

 Cavendish Capital Markets Limited  Neil McDonald        Tel: 020 7220 0500

                                    Leif Powis

 Camarco                            Billy Clegg          Tel: 020 3757 4980

                                    Rebecca Waterworth

 

- Ends -

 

Notes to Editors:

Jersey Oil & Gas (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 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 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.

 

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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