Jersey Oil & Gas, an independent upstream oil and gas company ‎focused on the UK Continental Shelf region of the North Sea, today provides a corporate update following the successful delivery of its stated farm-out strategy during 2023.

Highlights & Outlook:

• Delivering on strategy: Greater Buchan Area ("GBA") farm-outs delivered in 2023, enabling the Company to maintain a material 20% GBA working interest and receive certain cash payments alongside Buchan redevelopment funding
• Strong industry partners: endorsement and funding from two major UK North Sea operators, NEO Energy (Operator) and Serica Energy, the fifth and tenth largest producers in the UK North Sea, respectively
• Fully funded: the farm-out transactions provide JOG with a full carry on the expenditure ahead of Buchan project sanction and the budgeted development costs included in the approved Field Development Plan ("FDP")
• Substantial value creation: potential mid case core net asset value of over $250 million based on the draft Buchan FDP submission at $70/bbl oil (inflated at 3% per annum)
• High-quality development: building a long-life, low carbon production hub to redevelop the Buchan field via the redeployment of the "Western Isles" floating production, storage and offloading ("FPSO") vessel, which will be made electrification-ready in anticipation of a future connection to one of the planned nearby INTOG offshore floating wind developments
• Material resources: the Buchan redevelopment project unlocks gross resources of 70 million barrels of oil equivalent, with peak production of approximately 35,000 barrels of oil equivalent per day
• Buchan advancing: good progress being made on the work required ahead of project sanction and regulatory approval targeted for the second half of 2024, targeting first production in late 2026 - the FPSO has been secured, the Environmental Statement submitted and the draft FDP issued to the North Sea Transition Authority
• Strategic priorities: delivery of Buchan redevelopment sanction and leveraging the team's strengths to maximise shareholder value
• Agile business: 'right-sized' organisation, with cash running costs reduced to under £3 million per annum - small, focused team with an innovative business culture
• Cash: £10 million cash at year-end 2023, with further cash receipts totalling approximately £21 million scheduled following completion of the Serica Energy farm-out in Q1-2024 and FDP approval expected later in the year

Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"2023 was a watershed year for the Company. We delivered on our key strategic objectives - completing the GBA farm-out process and securing a fully funded, material 20% position in the Buchan redevelopment. Our partners, NEO Energy and Serica Energy, are hugely competent UK North Sea operators and we are delighted to be working alongside them on taking the Buchan project forward. With the draft Field Development Plan now submitted, we are well on the way to obtaining regulatory approval later this year and achieving the target of first production in late 2026. As a result of the 2023 transactions, JOG's value and investment proposition has been transformed.  The value of the business is firmly underpinned, with the planned FPSO development solution delivering robust economics and providing the route to full monetisation of the GBA portfolio."

KeyFacts Energy: Jersey Oil and Gas UK country profile