The way i see it many sold out late monday and tuesday thinking was just another aim pump & dump although some took profits and there is nothing wrong with that.
But are we now seeing a late reaction that pi's are beginning to see the bigger picture unfolding here and value created with the License award ?
Evening Madcrann....What a difference a few days make in this market.
Last week i was praying for a big turnaround but never expected it this quick if I'm being honest.
I think we need to load up our holdings again before Dick snaps them all up.
Great post by the way Dick but are you serious actually thinking the BOD will give up 50% Free or am i being stupid once again and not understanding your sense of humour ?
Good luck anyway you deserve it as i know you really admire this team assembled at JOG as it appears they are truly highly regarded by the OGA and by equinor
Time for a cold beer now in this blistering heat.
GL
..
Investors chronicle article well worth a read.
Jersey Oil & Gas (JOG:137p), a UK North Sea-focused upstream oil and gas company that owns an 18 per cent interest in the P2170 licence (Blocks 20/5b & 21/1d), Outer Moray Firth, which contains the Verbier oil discovery, has been awarded three blocks in UK Oil & Gas Authority’s 31st Supplementary Offshore Licensing Round. I anticipated this would happen when I reiterated my buy stance, at 63p, a couple of months ago(‘Share price catalysts on Jersey’s horizon’, 20 May 2019). Jersey's share price has surged by 86 per cent on today’s licensing awards.
That’s because it is a transformational development for the company and one that has prompted analyst Daniel Slater at house broker Arden Partners to almost double his target price from 230p to 450p based on a risked net asset value (NAV) estimate of 537p a share, using a US$65 a barrel long-term oil price. That’s because the acreage awarded to Jersey in the licensing round includes the Buchan oil field that was discovered by BP in the mid-1970s and came onstream in 1981. Production continued until May 2017, when the Buchan Alpha platform was no longer compliant with the current Safety Case, by which point a total of 148m barrels had been produced.
Buchan oil is a light 33.5° API oil with a low gas-oil ratio (GOR) GOR (285 scf/bbl), a term that quantifies the amount of gas dissolved in the oil. Jersey estimates that over 80m barrels of recoverable oil volumes remain to be produced from the field. The field was not developed by previous owner, Repsol Sinopec, but is development ready.
In addition, Jersey has been awarded 100 per cent working interests and ownership of Buchan Andrew, an undeveloped discovery above the main Devonian Buchan reservoir, and J2 Sgiath, an undeveloped discovery. These discoveries are estimated to have unrisked gross recoverable mean resources of 20m and 3m barrels, respectively, according to Jersey management and independent work completed by Rockflow Resources on behalf of the company.
And here’s the really smart part of today’s announcement. Jersey has entered into a three month option agreement under which Equinor, the is operator of Verbier, has been granted an option over a 50 per cent equity interest in respect of the two blocks containing the Buchan oil field and J2 oil discovery. Should the option be exercised, Jersey will act as licence operator and Equinor will reimburse the company for its 50 per cent share of costs in relation to the licence applications.
The plan is to submit a field development plan (FDP) to encompass initial redevelopment of Buchan (including new wells), followed by a tie-in with the nearby J2 discovery and Verbier. Subject to funding, first oil is targeted for 2024 and Jersey’s current net cash position of £15m (Arden estimate) should fund it through the FDP process depending on any further drilling that may occur on P2170
Longwait......The quote from Fairdealer was in response to my post last friday where i stated i need this around the £2.65 level to wipe out all my losses across my portfolio.
Today's gains have certainly helped a great deal but still some way to go yet.
I'm sure Fairdealer is around somewhere and is overjoyed with the RNS this morning.
Let's hope for another tick up tomorrow but what excites me now is the option equinor have taking 50% of this after 3 months.
Expect a nice rise if they do ?
GL
MasterRSI.....Where do you see the price going tomorrow ?
Obviously we will see some selling but also many digesting the news and increasing their holdings.
If i can pull off around £2.65- £2.80 over the next few weeks then i will be one happy bunny and have the best holiday I've ever been on.