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Sad to view chart at this time.
Touched 350 in Oct and again in April and here we are at less than 50% of those peaks despite several good news releases. In fact we could touch a previous low of 150. What will it take to get this back up? And when?
I understand how impatient everyone is getting and following recent news confirming the NEO agreement, it is easy to be impatient for the next steps ie FDP, FEED and another farm out.
We are also all disappointed that there is no positive impact on the share price despite this step forward.
We are probably tantalisingly close to next news and for me it is disappointing to read negative comments about AB whom some of you would put in the stocks and throw tomatoes and eggs a few hundred years ago.
I am in no doubt that the entire process is complex and I think that AB has been instrumental in bringing in the highest calibre of people to achieve our hopes and create major returns for us and themselves who also have skin and incentives in a great outcome.
It is hard to watch a weak share price and it is too easy to look for a scapegoat, but please let it stop and let’s give AB and his team credit in getting us closer. I feel there is momentum now.
Hopefully next news will be soon. I would also like to hear that they are actively courting institutions as well as the financial media.
I enjoy reading the technical and knowledgable contributions by many of you, but am sickened by the pathetic and naive comments by others.
I am sure that the team are acting sensibly and methodically and clearly they have great experience between them.
We should all be well rewarded and like you all, I want it soon.
Let’s change the subject now.
DU I agree with you regarding a quote from NEO.
Often when two parties collaborate you will read a quote from each party.
It would have provided the market with confidence.
I hope that AB will take this on board and ensure it happens upon concluding the deal.
Dismal performance since announcement. I cannot believe the entire capitalisation is only £63m.
It is going to take some news to move this now.
Hopefully formal conclusion of F/O will be announced before the AGM and ideally additional F/O at the AGM.
Here's wishing and hoping.
AGM PROXY RESOLUTIONS BELOW.
Resolution 1 To receive and adopt the audited financial statements of the Company for the year
ended 31 December 2022 and the Directors’ and Auditors’ reports thereon
Resolution 2 To re-appoint Frank Moxon as a Director of the Company
Resolution 3 To re-appoint PricewaterhouseCoopers LLP as the Auditors of
the Company and authorise the Directors to fix their remuneration
Resolution 4 To authorise the Directors of the Company to allot shares in accordance with
section 551 of the Companies Act 2006
Special Resolutions
Resolution 5 To give the Directors of the Company limited power as specified in the Notice of
Meeting to allot equity securities for cash on a non-pre-emptive basis in
accordance with section 570 of the Companies Act 2006.
Resolution 6 To give the Directors of the Company limited power as specified in the Notice of
Meeting to allot equity securities for cash on a non-pre-emptive basis in
accordance with section 570 of the Companies Act 2006 where the proceeds are
to be used to finance an acquisition or capital investment.
It is interesting that the share options to management and directors were given so quickly after the NEO announcement. I hope this means that news of another farm out is not long away.
If we have another say for 30% leaving 20% and a free carry then this price target could be realistic!
Fingers crossed for news soon.
So, what are the scenarios now?
1. JOG is working on another farm out of say 30% or more with a view to having a free carry as it goes to first oil in which case no immediate return to shareholders and we are all in for the long term
2. JOG is working on another farm out of say 30% or more and need to do a placing or share offer to fund its remaining share to go to first oil- still long term return for us
3. They are looking at a potential sell out now on the back of a 50% remaining stake, in which case what would they sell at? £7.50-£9.50?
4. They are looking at a potential sell out when they have another farm in partner.
Please feel free to offer other options. It would be nice to see the share price above £6 soon, as well as longer term further returns, but I am not sure how we will get there looking at the current malaise in the share price.
Quite a swing today. Dipped to 219.5 and has touched 255. Just shows once short term sellers have moved on how this share can pick up quickly. There have been some chunky buys and many of us who have been in for the long term are holding our shares tightly.
There seems to be more and more confidence in JOG and its prospects. The next farm in should send this sky high.
Have a good weekend all.
Very frustrating to see the price drop away despite 5:1 buys, but there have been some 10,000 sales so it seems some are taking profits and moving on.
I believe there is more news to come on another farm out. They will have been speaking to numerous parties during 2022 and will be re engaging with some on the secondary farm out. This will cause a rerating upwards if the terms are good.
The aim must be to get to oil extraction stage at minimum cost to JOG, though depending on secondary farm out terms, there might be a fund raising. However the rewards are high, and if we are a bit more patient we could still see a multiple of current price before long.
I am sure they remain very active in discussions. Keep the faith!
Note from finncap:
Jersey Oil and Gas PLC’s farm-out deal announced earlier on Thursday is worth more than £4 a share, according to research from finnCap.
Describing the partnership with NEO Energy, one of the North Sea’s big operators, as "exciting news", the corporate broker then goes on to forensically break down the ultimate value of the transaction.
NEO is getting 50% of the Greater Buchan Area, 120 miles northeast of Aberdeen.
In return, the private equity-backed oil producer is handing over US$33.9m in cash payments, plus a US$12.5mln "carry to take the development through to sanction".
There’s also a 12.5% further "carry" on the Buchan development, the broker points out, the finnCap analysis reveals.
With initial phase development costs estimated to be up to US$1bn to first oil, this places a US$170m, or £4.17 a share valuation on the farm-out, the broker concludes.
It added: "The transaction leaves JOG fully funded to FID [final investment decision] and sets a floor price for future transactions.
"It provides a route to development sanction and first oil, with the opportunity to add further value through additional farm-out transactions.
"JOG has a 50% remaining working interest in the project and will look to cover its 37.5% share of the development costs through an additional farm-out(s), with potential non-operating partners waiting in the wings."
Ultimately, management is aiming to retain a 20-25% carried interest in the project, finnCap reckons. It has set a £6.60 share price target, which is more than double the current price of £2.75.
Exciting times for JOG. Great partner. Floor level is set and a further farm out would add to that and then realisation to first oil. Who knows what might happen on the way as a further bonus?
Well done to AB and the team and Board of Directors.
JS- You apologise for ranting against AB and yet you blame it on HIS poor pr and communication. He and his team and Board have been, and still are, in detailed and sensitive discussions and he simply came up against the promised announcement by end of Q1 and duly informed us with a very positive update. What else could he do if the other party was not yet ready?
I believe he has done nothing wrong and anyone who sold out clearly did not have enough faith in the JOG story.
I continue to hold and await final, exciting and transformational news.
I think that AB, his team and Board have been working flat out for a long time to get the best possible deal for shareholders (and for themselves as they have a significant stake too which recognises their own faith in the JOG story).
Let's give them our support. I am confident that you will all be very grateful soon, including you, Batterymetals.
It was necessary to post today because of the commitment made in the previous RNS. I have no doubt that negotiations have been complex and I am sure that the detail you seek, DU, will be forthcoming once they are concluded.I have been a long term holder who has built up a sizeable holding and have always had faith in the management past and present. Let's remember that they have skin in it too and so it is in their interests to achieve a successful, possibly once in a lifetime, transforming deal. The slating AB has been given by some is shameful and pathetic and inconsistent with someone who claims to have 900,000 shares. I suspect this holding has been exaggerated by a multiple of 000.I think apologies to AB are due from some. Your comments were disgraceful and ignorant.
I cannot comprehend how someone claiming to own 900k+ shares is so negative. It just does not add up to good investing mentality.
I continue to have faith in the JOG story and potential and I am sure that AB and his colleagues feel the same.
I hope that the delay is only because they are squeezing the best possible deal for us all.
AB will be very aware of the time scale he stated which would have been approved by his advisors.
I think quite a few here could be eating humble pie if it comes in good.
Thank you, Dick.
Govt really needs to get a grip with its oil co taxing policy and think long term re attracting North Sea investment to ensure that we are not dependent on imports.
Currently they are playing short term politics and making it unattractive and could lose out long term.
No wonder talks are ongoing. JOG parties must be waiting for more clarity and potential amendments to the current policy. It cannot be easy for JOG management. So much is out of their control.
Article by Tom Espiner BBC Reporter is interesting: This is an excerpt:
........When he was chancellor, Prime Minister Rishi Sunak brought in a 25% Energy Profits Levy.
This was increased to 35% from January 2023 by current chancellor Jeremy Hunt, and will run until 2028.
The levy applies to profits made from extracting UK oil and gas, but not on refining, or selling petrol and diesel.
Less than 5% of Shell's profits come from UK production.
The scheme was criticised because it allowed oil firms an 80% investment allowance which overall allowed then to claim back 91p in every pound invested, including in oil and gas.
This investment allowance was reduced from 80% to 29% from 1 January.
However, the biggest oil producer in the North Sea, Harbour Energy, has been a vocal critic of the tax.
It said on Thursday that the Energy Profits Levy had "all but wiped out our profit for the year". Harbour reported pre-tax profits of $2.5bn, but tax - including $1.5bn set aside for the levy - had left the company with $8m in post-tax profit.
The tax "has driven us to reduce our UK investment and staffing levels," said its boss Linda Z. Cook, who used to be a Shell executive.
She added that it had given impetus to the firm to expand internationally.
Harbour Energy has not gone ahead at drilling at two sites, and did not take part in the latest North Sea offshore licensing round, a spokesman said.
That said, I think the investment allowance is good for JOG negotiations which clearly are continuing. I continue to have faith in the Board to deliver a favourable outcome for investors, including themselves who have significant skin in the company.