TGS Dispute Settlement Payment

RNS Number : 3805K

Jersey Oil and Gas PLC

04 January 2021

 

4 January 202 1

Jersey Oil and Gas plc

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

  TGS Dispute Settlement Payment

Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company, ‎focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to announce that it has reached a settlement with TGS-Nopec Geophysical Company ASA ("TGS") pursuant to an agreement entered into with TGS on 9 February 2018.  Under the agreement, TGS claimed uplift payments from JOG totalling US$1,050,838 in respect of: a) licence awards to Jersey Petroleum Limited ("JPL") in the Oil & Gas Authority's ("OGA's") 31st Supplementary Offshore Licencing Round; and b) the acquisition by JPL of Equinor UK Limited's 70% interest in Licence P2170 (Verbier).  Jersey Oil and Gas has disputed the validity of both claims, following which two hearings have taken place in the Norwegian courts.  On the basis of legal advice received, JOG has negotiated and agreed a final settlement payment to TGS of US$850,000.

Following this payment, which is settling a one-off and isolated dispute, the group's estimated cash position at 31 December 2020 was c.£5m, which is c.£3m ahead of our initial 2020 budgeted year-end cash balance.

We look forward updating shareholders on the group's Greater Buchan Area development project during the course of Q1 2021.

Enquiries :

Jersey Oil and Gas plc	Andrew Benitz, CEO	C/o Camarco: Tel: [phone]
Strand Hanson Limited	James Harris Matthew Chandler James Bellman	Tel: [phone]
Arden Partners plc	Paul Shackleton Benjamin Cryer	Tel: [phone]
BMO Capital Markets Limited	Jeremy Low Tom Rider	Tel: [phone]
Camarco	Billy Clegg James Crothers	Tel: [phone]

Notes to Editors :

Jersey Oil & Gas is a UK E&P company focused on building an upstream oil and gas business in the North Sea. The Company holds a significant acreage position within the Central North Sea referred to as the Greater Buchan Area ("GBA"), which includes operatorship and 100% working interests in blocks that contain the Buchan oil field and J2 and Glenn oil discoveries and an 100% working interest in the P2170 Licence Blocks 20/5b & 21/1d (subject to OGA approval of the acquisition of CIECO V&C UK Limited as announced on 26 November 2020), that contains the Verbier oil discovery and other exploration prospects.

JOG's acreage is estimated by management to contain more than 140 million barrels of oil equivalent ("boe") of discovered mean recoverable resources net to JOG, in addition to significant exploration upside potential, which includes 4 drill ready prospects with combined estimated P50 prospective resources of 222 MMboe that are within close proximity of the planned GBA hub development.  JOG is currently progressing the concept select phase of an FDP for the Greater Buchan Area.

JOG is focused on delivering shareholder value and growth through creative deal-making, operational success and licensing rounds. Its management is convinced that opportunity exists within the UK North Sea to deliver on this strategy and the Company has a solid track-record of tangible success.

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.

 

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