Jersey Oil & Gas has announced its audited results for the financial year ended 31 December 2021 and the time and date of its forthcoming Annual General Meeting.

Highlights

• The Company has aggregated a significant oil and gas resource base in the Central North Sea, the “Greater Buchan Area” (“GBA”)
• JOG launched its GBA farm-out process and is actively engaged with multiple counterparties
• Farm-out activities have intensified with JOG broadening the development solutions under ongoing evaluation with the various interested parties
• Work completed by the Company during the year is facilitating an accelerated technical evaluation of the alternative development options under consideration
• Key pre-FEED operations completed during the year
• Strengthened Board and senior management team with significant industry experience
• Year-end cash position of approximately £13.0 million, with no debt

Corporate Update

JOG has aggregated a significant oil and gas resource base in the heart of the Central North Sea.  As the sole owner of the GBA, the Company has the control and flexibility to advance an optimal new development capable of unlocking substantial long-term shareholder value. To this end, the next major step for JOG is to secure an industry partner(s) in order to move the development into the next phase of activities and secure the regulatory approvals in 2023 for execution of the project.

GBA Focus

• JOG is actively engaged with multiple high quality interested parties regarding the planned farm-out of an interest in the GBA
• Work is progressing to expand the development options in order to facilitate the farm-out process, with opportunities to utilise existing infrastructure for future production from the GBA under evaluation
• Engineering studies are being completed in collaboration with the various counterparties in order to validate and de-risk the different development solutions and facilitate the negotiation of commercial constructs for the GBA farm-out
• The range of competing development solutions, including tie-backs to existing platforms and re-use of available FPSO’s, has the potential to enhance the overall development economics
• Upon confirmation and selection of the optimal GBA development scheme the project will then move into Front-End Engineering & Design (“FEED”) activities along with preparation of the required Field Development Plan for the North Sea Transition Authority (formerly, the Oil & Gas Authority)
• Pre-FEED operational work included JOG completing an offshore survey to support Phase 1 of the GBA Development project. The survey acquired geotechnical and environmental baseline data within the GBA
• The GBA development solution that is taken forward for regulatory approval will seek to deliver upon both of the industry’s strategic objectives of “Maximising Economic Recovery” and “Net Zero”

Supportive Macro Environment

• Recent geopolitical events, exacerbated by recent under investment in the upstream sector, have led to a material escalation in oil and gas prices that has served to underline the importance of maximising domestic energy supplies
• The UK North Sea has only a limited number of readily executable oil and gas developments with the resource scale of the GBA

Attractive Outlook

• Progressing the GBA development project remains JOG’s number one priority with a singular focus on converting value in the GBA through industry partnership
• Opportunities to accelerate the Company’s corporate growth strategy through the execution of potential accretive acquisitions continue to be screened and evaluated
• The Company remains well funded with current expenditure primarily related to workstreams that will facilitate securing a successful farm-out
• Strengthened the team with the appointments of Les Thomas as Non-Executive Chairman, Graham Forbes as Chief Financial Officer and Richard Smith as Chief Commercial Officer

Andrew Benitz, CEO of Jersey Oil & Gas, commented:
“2021 was an active and exciting year for the Company, most notably involving the commencement of our Greater Buchan Area farm-out process.  Interest in developing the GBA has been strong and we are actively engaged with multiple serious counterparties.  Since launching the process our engagement strategy has been broadened to advance a range of competing development solutions, providing increased optionality.

“The GBA is a high-quality, development ready UK North Sea resource base of scale and we look forward to concluding the farm-out process and moving into the next phase of activities.  The Company remains well funded as we progress at pace to deliver stakeholder value through securing a successful farm-out to ensure this exciting project can be developed in the most economic and sustainable manner.”

KeyFacts Energy: Jersey Oil and Gas UK country profile