Jersey Oil & Gas (JOG), an independent upstream oil and gas company ?focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to announce its audited results for the year ended 31 December 2020.
- Delivered 100% control across all of the Greater Buchan Area ("GBA")
- Acquired 70% working interest ("WI") and Operatorship in licence P2170 from Equinor
- Acquired CIECO V&C (UK) Limited ("CIECO V&C") (12% WI in P2170 and tax losses)
- The 32nd Licensing Round Award has been completed at part-block 20/5e (within the GBA acreage)
- Core GBA P50 Contingent Resources increased to 172 MMboe, from 124 MMboe in 2019, with four high graded, drill-ready exploration prospects at approximately 220 MMboe
- Grown the GBA project team, expanding the size and capabilities of the Company commensurate with the requirements of operatorship of the GBA Development project (the "GBA Project")
- Concept Select progressed during the period, focused on delivering detailed plans for a low-carbon development concept with highly attractive economics
- Year-end cash position of £5.1 million, with no debt
Post year end
- Key findings of the Concept Select published
- Uplift in P50 Contingent Resources estimates for the core GBA to 172 MMboe
- Selected Concept for a three phase, low-carbon, conventional platform development
- A farm-out process has been launched to seek an aligned partner to join the project and provide material funding
- Concluded a Placing and Offer for Subscription
- Oversubscribed and raised £16.6 million
- Strengthened the balance sheet and received strong institutional support
- Concluded the acquisition of CIECO V&C, providing a 12% WI in licence P2170 and associated tax losses of c.£15m
- Farm out process for GBA underway
- JOG views the GBA as one of the most exciting developments in the North Sea, with the potential to deliver significant value to shareholders from
- 4 operated licences
- 5 oil discoveries
- 4 drill-ready exploration prospects
- Project lifetime pre-tax free cash flow for the potential core GBA development is forecast to be circa US$6.4bn, with an estimated project value of approximately US$1.7bn pre-tax NPV (10%)
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"JOG is delivering on a strategy of focused growth, having successfully aggregated a significant portfolio of discovered resources in the GBA together with significant exploration upside. We have assembled an industry leading, multidisciplinary team of specialists who have delivered a significant upgrade in discovered and prospective resources and selected what we believe is the optimum development concept.
"I would like to express my thanks to all our team and everyone involved in our GBA project, who have worked tirelessly throughout the Covid-19 pandemic to ensure ongoing progress.
"The GBA project will be a major investment for the UK, create many jobs and ultimately produce a vital domestically sourced and low carbon supply of energy. Our shareholder support is continually appreciated, and it is only through their investment that we can achieve our plans."