Jersey Oil And Gas Share Discussion Threads

[ny boy] 29/1/2020 13:05

Supports Support1: 119.00p Support2: 99.01p

Some technical buying at support 1 a short while ago, could give a decent pop for 5-10% profit I guess

[burial] 29/1/2020 12:45

Developments of this size in the North Sea will not be hugely profitable. And frankly they might never happen. For punters only.....in my humble opinion.

[davidspringbank] 29/1/2020 11:38

I don't know what's going on here, but I bought 5000 @ £1.21.

[rbonnier] 29/1/2020 11:15

This is doomed now and heading sub 1

[mariopeter] 29/1/2020 08:55

Very weak article as no mention of the great wins achieved by JOG in the licensing round. Is the Herald a bit like the Beano?

[master rsi] 28/1/2020 23:44

Oil giant loses interest in North Sea find that galvanised industry
The HERALD - Mark Williamson - Group Business Correspondent - 27 January 2020

NORTH Sea-focused Jersey Oil & Gas has seen its shares plunge six per cent after oil giant Equinor apparently lost interest in a field development the firms were considering, which had generated excitement in the industry.

Jersey turned heads in 2017 when it made a find called Verbier in the Moray Firth with Equinor, which was initially estimated to contain up to 130 million barrels.

The company had persuaded Equinor to buy into the acreage.

The coup suggested a bright future lay ahead for Jersey, a relative minnow in an industry dominated by big fish.

Jersey’s success boosted hopes that independents could help stimulate interest in the North Sea amid the deep downturn triggered by the crude price plunge from 2014.

The company went on to work up plans for a major new hub in the Greater Buchan Area of the North Sea, which is expected to include Verbier.

Jersey hopes to restart production from the giant Buchan field as part of the plan, which it has suggested could help it generate $3bn cash.

However, Equinor has decided to exit the Verbier project. The company has sold its 70 per cent stake in the licence to Jersey, in a low-cost deal.

“Although considered a potential development opportunity, the Verbier discovery does not rank sufficiently high in the Equinor global portfolio to warrant prioritization,” it said.

Plan to recover extra 300m barrels from North Sea hits obstacle

The sale provides the latest sign that Equinor, which was formerly known as Statoil, has had a big change of heart about the potential of the area containing Verbier.

When the Verbier find was made in 2017 Statoil said it proved there could be significant remaining potential in the mature North Sea.

Statoil said at the time: “The Verbier result certainly gives us the confidence and determination to continue our exploration efforts.”

Questions were raised about the commercial appeal of Verbier after the results of an appraisal well drilled last year indicated that it could be much smaller than hoped.

Jersey said then its estimates of the size of Verbier were likely to be revised towards the lower end of the initial range of 25 million barrels of oil equivalent (mmboe) to 130 mmboe.

North Sea well reverse dents recovery hopes

Jersey reckons a find at the lower end of the range could still be viable. Including Verbier in a wider Moray Firth hub would improve the economics of a development.

However, in October Equinor spurned an opportunity to buy in to a wider Buchan area project.

Equinor insisted yesterday that it remained committed to the potential of the United Kingdom Continental Shelf (UKCS) and would continue to explore in the area.

The company acquired a significant stake in the giant undeveloped Rosebank field West of Shetland in 2018.

But Jersey faces the challenge of having to try to find a replacement for Equinor.

Chief executive Andrew Benitz put a brave face on developments, insisting the Buchan area project was a “truly exciting opportunity to showcase what is possible with new developments on the UKCS”.

He said the acquisition of the oil volumes associated with Equinor’s stake in Verbier strengthened Jersey’s plan to bring the field into production through the GBA development.

Jersey plans to sell stakes in the GBA acreage through a farm out process after completing planning work on the development concept. Joint house broker BMO Capital Markets said the deal with Equinor could simplify the process.

North Sea becomes 'hotspot' as range of predators eye assets

Jersey will pay Equinor $3m if the Oil and Gas Authority approves plans for a Verbier development, $5m when first oil is produced and a royalty on production.

It had a market value of £5.6m before the Verbier find was announced. Shares in the firm closed down 8.5p at 129p yesterday, leaving it with a market capitalisation of around £28m.

The Brent crude price fell to a three-month low of $58.50 per barrel yesterday amid concern about the Coronavirus outbreak.

Statoil acquired a 42% interest in the licence containing Verbier from Jersey in 2016 for $1.2m and bought a 28% stake in the acreage from Japan’s CIECO for $0.8m.

It agreed to cover up to $25m well costs.

Jersey controls the rump of the assets amassed by the Trap Oil business.

Trap developed a big North Sea portfolio helped by the £30m acquisition of Banchory- based Reach Oil & Gas in 2011 but suffered hefty losses after the crude price plunged three years later.

[mariopeter] 28/1/2020 07:59

Read some Warren Buffet material.

[rbonnier] 28/1/2020 07:47

The market is very rarely wrong as this goes sub 1

[mariopeter] 28/1/2020 00:42

Equinor sold they did not walk. We have them to thank for setting this all up. They sold 70% of P2170 to JOG for £8m plus about $70m (seventy million dollars) in royalties (less when discounted and assumed $60 Brent). Hands up who did the maths on the royalties! Believe me Equinor still have skin in the game. Not a bad price for 17.5 mmbo. Oh yes JOG have have 142 mmbo.

Believe. JOG have a great board of directors and top notch CPR. The market has this very badly wrong valuing entire JOG at £26m. Question is will the market cop on when the farm-outs begin in four months or so (see the January 2020 corporate presentation on the JOG website for 2020 activity).

Hope the virus clears up though as holders here have a lottery win on JOG to be collected in a year or so..... or earlier if the oil sector can't resist the disparity. Have to say don't like the chart btw and hoping the market gets a grip.

[rbonnier] 27/1/2020 23:06

Old Corky is he still around gosh I thought he was long gone.

[master rsi] 27/1/2020 23:02

Evil Knievil the famous shorter, has gone long on JOG first thing this morning


"Finally, I bought Jersey Oil and Gas (LON:JOG) at 143p first thing this morning. It is now 130p offer. I may have missed the point but for a stock that could go over £10, this strikes me as a smooth move."

[peanut100] 27/1/2020 22:26

It's become to small for them, they're focusing on 300m barrels off Shetland

[mariopeter] 27/1/2020 22:08

PMG heavy useless oil. We had this all before.

[cyan] 27/1/2020 22:07

www.malcysblog.com/2020/01/oil-price-predator-cerp-jog-dgo-and-finally/

"a huge potential hub "

Malcy ramps away ; umm 'potential'. He writes like getting a farmin partner is easy.

If it all was sooo wonderful why did Equinor walk?.

[cyan] 27/1/2020 20:44

I am a holder of this share and I do not short. I want JOG to succeed; Its just I am not blind to the obvious position JOG finds itself in; Equinor have exited; we are alone pushing the dream.

If you don't like BOR as a comparison;(its condensate by the way) how about North Sea PMG and the GPA hub? Where is the farmin deal there? That's been talked up for years.

[thedudie] 27/1/2020 20:06

Well someone is picking up that loose stock from lunchtime onwards (note the share price stable through the afternoon) … so they see value here.

[mariopeter] 27/1/2020 20:01

BOR ...Gas in the Malvinas. Good comparison. Rocky can't even farm- out Sealion to someone with money! Maybe the Argies will fund a pipeline to BA?Yes good idea to short a stock with assets of £42.16 per share at £1.30.

[rbonnier] 27/1/2020 17:50

Going sub £1 75P is the target for the shorts

[cyan] 27/1/2020 16:20

Glossy presentations with mentions of farm-out processes come cheap.. How long have BOR been trying to farmout?

[mariopeter] 27/1/2020 15:31

From the new presentation lots of farm-out processes starting May 2020 !

[peanut100] 27/1/2020 15:07

How about PE and either Repsol or Sinopec as their litigation is coming to an end and both know the area.

[cyan] 27/1/2020 14:55

I can not see Premier getting involved. They have enough trouble with debt and finance. A redevelopment here will be very costly. Have to think outside the box. HUR went it alone and incredibly raised the finance themselves BUT the prize is potentially so much greater than JOG's assets . Not going to happen here, imo.


The only chance I see is from the likes of the Israeli NAVITAS who are farming into the Premier/RKH SEALION field; but they would need other radical newbies to join them as I suspect this is a bit too big of a project and they are already going in big in the USA Shenandoah field.

Shenandoah is a deep-water project; 1700 metres

"Navitas jumps on positive Shenandoah report"



12.12.18

"Navitas and the operator believe that commercial production in the project will commence in 2023. Navitas's share of the development costs will be $184 million."

(contracts for the 'trees' was announced in October 19)

"(Navitas's shares is 65 million barrels)"

"Navitas acquired rights in the Shenandoah discover in March for only $1.8 million in cooperation with two of its partners in the Buckskin project:"

"Navitas and its partners in Shenandoah took advantage of the bankruptcy proceedings of Cobalt International Energy to acquire the rights at a very low price, then filed a revised development plan for the reservoir."

Just $1.8 million ; impressive!

NAVITAS seem set on explosive company growth by acquiring somewhat distressed prospects. How they will raise all the cash required is going to be interesting. They are the sort of company in a consortium we need; if they can come up with the goods for SEALION.

[didas] 27/1/2020 14:45

Perhaps we might now see some takeover interest before any farm out?

[peanut100] 27/1/2020 13:26

Wengen is a new added prospect, 53m