The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
OGA - Situated in the Outer Moray Firth, the area features considerable open, currently unlicensed acreage, including a number of undeveloped discoveries. The OGA is encouraging companies to partner with each other and collaborate to progress exploration and new developments in the area.
I think JOG were only given the Buchan licenses because the OGA were very confident they could form some strong partnerships
You don’t give an option to a potential partner unless they have already made it clear they are interested. So why the 3 months’ timeframe? Could it be they want to see some more evidence from JOG the venture is going to be viable, so they have asked JOG to go way produce it, or, do they want to go away and get more of their own data. So, what could it be? Of course, the answer could be a lot simpler than that, it could well be they just want to see all the paperwork completed, as required by OAG, then once that’s in place they take up the option. 3 months is very short time in this business.
The J2 block recently awarded to JOG is an undeveloped discovery made in 2006 by Talisman (later named Repsol Sinopec) in the 20/05a-10-Y well.
At the time Talisman reported:
“The 20/5a-10y well successfully tested an exploration prospect about three kilometres north of the Talisman operated Buchan Field and 12 kilometres southwest of the Tweedsmuir South Field where Talisman also holds a 94.43% equity interest. The well was drilled by the Ocean Nomad semi-submersible rig and discovered oil bearing sandstones of Upper Jurassic age. The well encountered two separate Jurassic sandstone reservoirs and upon testing
flowed at a combined rate of 11,000 bbls/d of 39 degree API oil.”
When you start to look at the detail between the lines, just this block alone could reap millions. Things just keep getting better and better. Should be a good week ahead.
Thanks for that proselenes, very enlightening. Now that most of the short term traders have left and news sinks in how undervalued JOG is, I can see a lot more upside in the coming weeks. Hopefully 3D announcement soon and with it next drilling target, then take up of option by eqinor. £3 on the cards by end of month if not sooner. Exciting times ahead for all JOG holders.
I chucked the kitchen sink in when it was 57 and 68p, pity the kitchen sink was only worth £3K. Still, can now afford that luxury kitchen my wife keeps going on about, but not yet, still lots of upside in this yet
Its very difficult to throw lots of money at a share when its at its lowest ebb even if you have faith and confidence. I basically chucked in all I could afford at the time which wasnt much, but did manage to average down to 1.50
Good point PT, all the news has detracted from Verbier, a field that has yet to yield its full potential, just need to see the 3D and maybe some news on further appraisal wells. Yes, complex geology, but with the help of equinor expertise could be another Buchan in the making
Good point PT, all the news has detracted from Verbier, a field that has yet to yield its full potential, just need to see the 3D and maybe some news on further appraisal wells. Yes, complex geology, but with the help of equinor expertise could be another Buchan in the making
I have been holding shares in JOG for over two years now however, like many other long-term holders on this board, I did start to lose patience at the lack of news after the duster. Of course, all that is now forgotten after the recent announcements, so shame on me for doubting our directors abilities. I even managed to top up a few in the 50’s and 60’s, but not as much as I would have liked, as at the time I could only afford £3k’s worth.
I am very interested in the science of petroleum exploration as I have an MSc in Geology, so I have studied the recent data from the OGA. When the Buchan field was first discovered it was thought the geology was far too complex to allow any large amounts of oil to be extracted. However, as drilling technologies improved over the years more oil flowed than was first expected. This is still the case today, as new technology in surveying and extraction continues to develop, to the point where they the professionals think there is a lot more oil in the Buchan field yet to be tapped.
I was particularly impressed with BOD winning this license over the stiff competition. If the OGA have faith in JOG, then so do I and I for one will be holding out for the bigger profits to be made further down the line. In the short term, the downside risks going forward are minimal, much less so that when we were actively drilling. We even have 100+ mmboe in proven reserves now, something we didn’t have just a few short weeks ago.
Of course, AIM is not for the feint of heart as I’m sure a lot of you already know, but if your looking for a longer-term investment then JOG should be on your radar.