REG - Jersey Oil & Gas PLC - Buchan Project Update and Notice of Results

Jersey Oil and GasAnnouncement

02/09/2024 07:15

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RNS Number : 4146C  Jersey Oil and Gas PLC  02 September 2024

2 September 2024

 

Jersey Oil and Gas plc

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

 

Buchan Project Update

and Notice of Interim Financial Results

 

Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company
‎focused on the UK Continental Shelf region of the North Sea, notes the
press release issued today by NEO Energy ("NEO"), the Buchan Horst ("Buchan")
licence operator, following the UK Government's recent announcement concerning
its plans for a consultation on new environmental guidance for oil and gas
firms.  The Government has determined that such guidance is necessary in
light of the recent Supreme Court "Finch" ruling requiring regulators to
consider the impact of hydrocarbon combustion, Scope 3 emissions, in the
Environmental Impact Assessment for new projects.  The Government is aiming
to conclude its consultation by Spring 2025.

 

The press release issued by NEO noted:

"NEO and its 100% owner HitecVision have taken the decision to materially slow
down activities across all development assets in the portfolio.  In relation
to the Buchan Horst project NEO awaits clarity around the UK regulatory and
fiscal framework so that the full impact can be assessed.  This will
inevitably delay first oil timing in relation to the project, which was
previously forecast to be late 2027.  The Joint Venture will seek a licence
extension in order to continue technical evaluation in light of these changes
to tax and environmental consents".

 

Andrew Benitz, Chief Executive Officer, commented:

"Whilst demand for hydrocarbons continues during the energy transition,
homegrown energy is the right solution.  A project like Buchan has the
potential to produce some of the lowest emission barrels of any project
globally.  Emissions arising from the combustion or use of those hydrocarbons
will result in the same emissions as comparable barrels regardless of where
they are produced.  Homegrown energy should always trump imports, creating
domestic economic growth, jobs and valuable UK tax receipts."

 

The Company will issue its Interim Financial Results for the six month period
ending 30 June 2024 on 19 September 2024.  JOG's cash position at the end of
the first half of 2024 was approximately £13 million and the Company benefits
from no financial exposure to Buchan project costs as a result of the
farm-outs that have been completed with NEO and Serica Energy.

 

 

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 Horst 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 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.

 

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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