Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company ‎focused on the UK Continental Shelf region of the North Sea, announces its audited financial results for the year ended 31 December 2025.

Following the significant progress that has been made by the Company towards monetising the Greater Buchan Area ("GBA"), the last year has frustratingly seen momentum slowing as a result of the Government's consultations on the future regulatory and fiscal direction of the UK North Sea. Despite this, the Company remains well positioned as one of the leading UK listed small-cap oil and gas companies, with a high-quality development portfolio and the funding to deliver on its organic growth plans.

Buchan Development

The potential for the Buchan Horst ("Buchan") development to drive long term shareholder value is well understood and securing sanction for this project represents a huge opportunity. While the end of the Government consultations in late 2025 helped provide additional clarity on the framework within which future investment decisions can be assessed, it is clear that the industry as a whole is still digesting the outcomes. Positive conclusions in respect of the protracted environmental and regulatory approval processes for the North Sea's "Jackdaw" and "Rosebank" developments will inevitably help inform the optimal route forward for subsequent UK projects like Buchan.  Obtaining clarity from these processes and the likelihood of an earlier than planned implementation of the "Oil and Gas Price Mechanism", the replacement regime for the Energy Profits Levy, will help influence the timeline and steps for taking the Buchan project towards sanction.

Although various headwinds have buffeted the industry, the core strengths of our business remain unchanged:

• Material resource base: With estimated gross resources of over 100 million barrels of oil equivalent ("MMboe") in the Greater Buchan Area ("GBA"), underpinned by a carried 20% working interest in the Buchan development, the Company has the potential to generate substantial cash flow from its portfolio
• "Hub and spoke" development plan: Unlocking the resource base involves the installation of a central processing facility for the area, with initial production from Buchan to be followed by the tieback of the other GBA feeder fields
• Fully funded: The farm-out transactions completed with NEO Next+ ("NEO") and Serica Energy ("Serica") provide the funding for the Company's 20% investment in the Buchan development, along with several milestone cash payments - to date this has totalled over $25 million in cash and capital expenditure carry payments
• Strong industry partners: NEO and Serica are major, well-financed, UK North Sea oil and gas operators that provide strength and expertise to a high-quality joint venture partnership
• Financial resilience: The Company continues to prudently manage the financial position of the business and maintain its resilience to the delayed sanction of the Buchan development, which has resulted from the regulatory and fiscal headwinds the industry has faced

The Buchan joint venture is continuing to screen and consider additional potential development solutions that have arisen as a result of the inevitable delay in investment decision-making caused by the Government consultations.

Strategic Focus

The Company's vision is centred on successfully growing the business in a smart and sustainable way, developing important domestic energy resources and creating value for all stakeholders. The organisation is "right sized" for the stage and scale of its current activities and maintains a nimble approach to advancing its key strategic objectives.

JOG remains sharply focused on unlocking the organic value of the GBA, combined with utilisation of its existing UK tax allowances of over $100 million through the pursuit of accretive asset acquisitions that bring cash flow, diversity and quality investment opportunities into the portfolio. Such opportunities are thoroughly assessed in terms of their potential strategic fit, being mindful of the quality and unencumbered strengths of the existing portfolio.

Outlook

The Company is well positioned to continue pursuing its core objective of fully monetising the value of its GBA interests. With total year-end cash reserves of £11 million, no debt and a current cash run rate of under £1.5 million per annum, the business is financially secure and funded for execution of the Buchan development programme. This backdrop provides an attractive springboard from which to realise the full potential and ambitions of the business for delivering long-term shareholder value.

Andrew Benitz, Chief Executive Officer of JOG, commented:
"The message is beginning to land; as long as demand persists, the UK cannot sustain a strategy that relies on importing oil and gas while discouraging domestic North Sea production. The agreement on a more rational fiscal mechanism for taxing North Sea oil and gas production during periods of exceptionally high prices is a welcome and important step forward. However, delaying its introduction to 2030 will come too late for many in the basin. We believe that the straightforward step, which we understand the Government is actively considering, of bringing this mechanism forward would help reopen the UK North Sea and represent a major step towards unlocking the significant investment potential that our Buchan redevelopment project has to offer."

KeyFacts Energy: Jersey Oil and Gas UK country profile