Last checked at 18 Mar 2020 07:00
18 March 2020
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Business Update
Jersey Oil & Gas (AIM:JOG), an independent upstream oil and gas company focused on the UK Continental Shelf ("UKCS") region of the North Sea, provides an update on its current business, in light of the outbreak of the Covid-19 virus and its effect on the global market.
As the world implements measures to tackle the ongoing outbreak, we acknowledge there is growing uncertainty around economic growth and underlying business conditions.
Jersey Oil and Gas remains fully funded to deliver the concept select work we are progressing on our Greater Buchan Area ("GBA") development. We benefit from having no debt and on current plans the company has sufficient working capital through to the end of 2021, prior to any proceeds from our planned sale of a part interest in our GBA project, the process for which is expected to be launched later this year. Cost control continues to be monitored closely by our Board. Our year end 2019 unaudited cash position was £12.3m. JOG's core GBA asset base is estimated to hold more than 140 million barrels of oil equivalent ("mmboe") of discovered and recoverable oil volumes and more than 230 mmboe of exploration upside net to JOG. With further area collaboration across the wider GBA, there is a potential to produce more than 200 mmboe of discovered oil and gas resources.
Therefore, while it would be inappropriate to describe the situation as 'business as usual', we continue to work on the various workstreams required to achieve our stated goals and create long term shareholder value, including advancing concept select for the GBA development which remains on track for delivery this summer. Given the nature of our current workstreams these can mostly be completed remotely by our team and contractors and therefore we have set up business continuity measures to enable our team to work from home to ensure that the safety of those in our employ remains a top priority.
Enquiries:
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Jersey Oil and Gas plc
| Andrew Benitz, CEO | C/o Camarco: Tel: 020 3757 4983 |
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Strand Hanson Limited | James Harris Matthew Chandler James Bellman | Tel: 020 7409 3494 |
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Arden Partners plc | Paul Shackleton Benjamin Cryer | Tel: 020 7614 5900 |
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BMO Capital Markets Limited | Jeremy Low Tom Rider | Tel: 020 7236 1010 |
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Camarco | Billy Clegg James Crothers | Tel: 020 3757 4983 |
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Notes to Editors:
Jersey Oil & Gas is a UK E&P company focused on building an upstream oil and gas business in the North Sea. The Company holds a significant acreage position within the Central North Sea referred to as the Greater Buchan Area, which includes operatorship and 100% working interests in blocks that contain the Buchan oil field and J2 and Glenn oil discoveries, and, following the acquisition of an additional 70% working interest announced in late January 2020 will, subject to completion, also assume operatorship of and hold an 88% working interest in the P2170 Licence, Blocks 20/5b & 21/1d, that contains the Verbier oil discovery.
JOG's acreage is estimated by management to contain more than 140 million barrels of oil equivalent ("boe") of discovered mean recoverable resources net to JOG, in addition to significant exploration upside potential. JOG is currently progressing the appraise and select phases of a Field Development Plan ("FDP") for the Greater Buchan Area.
JOG is focused on delivering shareholder value and growth through creative deal-making, operational success and licensing rounds. Its management is convinced that opportunity exists within the UK North Sea to deliver on this strategy and the Company has a solid track-record of tangible success.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.