Buchan Project Update and Notice of Results

Jersey Oil and Gas PLC

02 September 2024

 

2 September 2024

Jersey Oil and Gas plc

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

Buchan Project Update

and Notice of Interim Financial Results

Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company ‎focused on the UK Continental Shelf region of the North Sea, notes the press release issued today by NEO Energy ("NEO"), the Buchan Horst ("Buchan") licence operator, following the UK Government's recent announcement concerning its plans for a consultation on new environmental guidance for oil and gas firms.  The Government has determined that such guidance is necessary in light of the recent Supreme Court "Finch" ruling requiring regulators to consider the impact of hydrocarbon combustion, Scope 3 emissions, in the Environmental Impact Assessment for new projects.  The Government is aiming to conclude its consultation by Spring 2025. 

The press release issued by NEO noted:

"NEO and its 100% owner HitecVision have taken the decision to materially slow down activities across all development assets in the portfolio.  In relation to the Buchan Horst project NEO awaits clarity around the UK regulatory and fiscal framework so that the full impact can be assessed.  This will inevitably delay first oil timing in relation to the project, which was previously forecast to be late 2027.  The Joint Venture will seek a licence extension in order to continue technical evaluation in light of these changes to tax and environmental consents".

Andrew Benitz, Chief Executive Officer, commented:

"Whilst demand for hydrocarbons continues during the energy transition, homegrown energy is the right solution.  A project like Buchan has the potential to produce some of the lowest emission barrels of any project globally.  Emissions arising from the combustion or use of those hydrocarbons will result in the same emissions as comparable barrels regardless of where they are produced.  Homegrown energy should always trump imports, creating domestic economic growth, jobs and valuable UK tax receipts."

The Company will issue its Interim Financial Results for the six month period ending 30 June 2024 on 19 September 2024.  JOG's cash position at the end of the first half of 2024 was approximately £13 million and the Company benefits from no financial exposure to Buchan project costs as a result of the farm-outs that have been completed with NEO and Serica Energy.

Enquiries:

Jersey Oil and Gas plc	Andrew Benitz	c/o Camarco: 020 3757 4980
Strand Hanson Limited	James Harris Matthew Chandler James Bellman	Tel: [phone]
Zeus Capital Limited	Simon Johnson	Tel: [phone]
Cavendish Capital Markets Limited	Neil McDonald Leif Powis	Tel: [phone]
Camarco	Billy Clegg Rebecca Waterworth	Tel: [phone]

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Notes to Editors:

Jersey Oil & Gas (AIM:JOG) is a UK energy company focused on creating shareholder value through the development of oil and gas assets and the execution of accretive transactions. 

The Company has a focused asset portfolio centred on developing homegrown North Sea resources that support the UK's energy requirements as it transitions towards net zero.  JOG holds a 20% interest in each of licences P2498 (Blocks 20/5a, 20/5e and 21/1a) and P2170 (Blocks 20/5b and 21/1d) located in the UK Central North Sea and referred to as the "Greater Buchan Area" ("GBA").  Licence P2498 contains the Buchan Horst oil field and J2 oil discovery and licence P2170 contains the Verbier oil discovery.

JOG's strategy is focused on unlocking the organic value of its GBA assets, combined with the pursuit of asset acquisitions that bring cash flow, diversity and quality investment opportunities into the portfolio.  The Company's Board and Executive team have a wealth of experience in managing and growing publicly listed energy companies and a strong track-record of value creation in the UK North Sea oil and gas sector.

Forward-Looking Statements

This announcement may contain certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with an oil and gas business.  Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to it at this time, the actual outcome may be materially different owing to factors beyond the Company's control or otherwise within the Company's control but where, for example, the Company decides on a change of plan or strategy.

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 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.

 

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