Jersey Oil and Gas PLC GBA Farm-Out Completion

RNS Number : 3513E

Jersey Oil and Gas PLC

26 February 2024

 

26 February 2024

 

Jersey Oil and Gas plc

("JOG" or the "Company")

 

GBA Farm-Out Completion

 

Jersey Oil & Gas plc (AIM: JOG), an independent upstream oil and gas company ‎focused on the UK Continental Shelf region of the North Sea, is pleased to announce that, further to the press release issued on 23 November 2023, the Company has now completed its farm-out of a 30% interest in the Greater Buchan Area ("GBA") licences to Serica Energy (UK) Limited ("Serica Energy") and received the associated milestone cash payment of $6.8 million. 

 

The GBA comprises licences P2498 ('Buchan') and P2170 ('Verbier'), with the joint venture partnership now consisting of NEO Energy (50% interest, Operator), Serica Energy (30% interest) and JOG (20% interest). 

 

In aggregate the GBA farm-out transactions provide JOG with up to $38 million in cash payments ($18 million of which has now been received) and a full carry on both pre-sanction costs and capital expenditure in the approved Buchan Field Development Plan.

 

 

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]

- Ends -

 

Further Information:

The cash paid by Serica Energy at completion totalled $7.5 million, of which $0.7 million is associated with a portion of the costs incurred by NEO Energy ("NEO") on JOG's behalf since the 1 April 2023 economic effective date of the transaction. This amount will be paid to NEO by JOG.  The net cash payment to JOG is therefore $6.8 million.

 

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 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." Licence P2498 contains the Buchan oil field and J2 oil discovery and licence P2170 contains the Verbier oil discovery.

 

All figures quoted in this announcement are in US dollars, unless stated otherwise.

 

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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