Interesting29 May 2018 14:51
Hindsight
Worth remembering.
Chairman's Statement
It is chilling to reflect that only ten years ago the UK was a net exporter of energy whereas now our country is highly vulnerable to changes in the climate, be it physical or political. As it happens, recent bad weather and tensions with Russia have delivered a wake-up call to the UK that we are close to crisis. It is otiose to apportion blame. Now is the time for action. Our island's characteristics provide an equation which will protect us in extremis with energy supply options ranging from subsidised renewables, solar and wind power, to the gasification of coal. However, it is the southern North Sea which contains huge quantities of undiscovered gas with an infrastructure in place which is the envy of many countries, most obviously China. The 30th round of licensing awards due this quarter will herald the renaissance of this our most valuable energy asset.
It is my aim that shareholders' patience will be rewarded in the course of this year by securing investment to provide for one or more wells to be drilled on our Southern North Sea Licences and by the award, to us, of additional licences for which we applied in November in the 30th round of UK offshore licensing.
We leave no stone unturned in our endeavour to obtain a partner(s) for our licences in the Southern North Sea. With the exception of the Jersey Oil & Gas farm out to Statoil (which resulted in a significant oil discovery last year), there have been limited farm outs achieved not only offshore UK but throughout the World. The situation in the North Sea is however improving and is likely to improve further after the 30th round awards have been made as many companies, in my judgement, will continue to adopt a prudent attitude to their exploration budgets until they know the outcome of the round and how successful or not they have been. Thus, funds for exploration should be liberated in the event of some of the larger applicants securing less exposure than they had anticipated.
Our applications are significant and, I believe, well thought out and coherently presented. All matters pertaining to the round are of course sub judice whilst the Oil & Gas Authority are monitoring and vetting the applications and the applicants, but I can say that, should our application be largely recognised, we shall instantly be proprietors of a significant amount of highly prospective North Sea acreage and additional prospective resources.
As you may have read, in February 2018, I announced my decision to step down as Chief Executive to allow time to develop other interests, notably the formation of a new charity and the authorship of more books. These activities, however, will not be at the expense of my determination, as Chairman, to oversee the Board's duty to shareholders by translating the above objectives into reality.
J G Cluff
Chairman
30 April 2018
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