600p Arden Target!20 May 2020 11:59
JOG GBA project (based on the Buchan oil field, J2, Glenn and Verbier oil discoveries and a number of additional exploration prospects), awarded in 2019, have transformed the company’s asset position.
They put JOG in charge of gross 134mmbbl of 2C resources, which the company plans to use as the base for a new hubdevelopment in the area (which could facilitate tie-back development of any further discoveries JOG may make, and third-party fields).
Progression of this project, with first oil expected in 2025, would make JOG an increasingly significant UK E&P company,likely to draw increasing amounts of investor attention.Going forward, we look for ongoing updates on GBA core development planning progress, including updates on the joint area study. Beyond this, there is the GBA concept selection expected in Q3 2020, the partial sales process (on the main GBA development, but also potentially including the surrounding exploration assets)currently likely in Q1 2021 (market conditions dependent),followed by a formal development plan submission as early as mid-2021.
There is also the ongoing potential for new production acquisitions, opportunities for which may be presented by the fall in oil prices. This provides plenty of potential newsflow in the coming months, and beyond this a route towards first oil.
In our view, the market is yet to appreciate JOG’s current asset position, but progression towards concept selection and a successful partial sell down process could act as important events in demonstrating the materiality and significance of this.
We have a Buy recommendation and 600p target
Sign In
Follow the stocks
