Jersey Oil & Gas plc Regulatory News (JOG)

18 August 2021

Jersey Oil and Gas plc

("Jersey Oil & Gas", "JOG" or the "Company")

Licence 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, is pleased to provide an update in respect of its licences P2497 Block 20/4c (Zermatt) and P2499 Block 21/2a (Glenn).

Further to undertaking a comprehensive technical and economic evaluation of licences P2497 and P2499 and meetings recently held with the Oil and Gas Authority ("OGA"), the OGA has confirmed that it is satisfied that the Phase A Firm Commitments for both licences have been fulfilled. JOG has decided not to progress to the next licence phase, which would have required committing to a firm well in each of these two licence areas. Accordingly, the licences will automatically cease and determine at the end of Phase A of their Initial Term on 29 August 2021. 

As announced on 3 March 2021 in our Greater Buchan Area Development Project Concept Select Update, the selected concept for the GBA Development is planned to be executed in three phases and neither Glenn nor Zermatt were included in any of these phases. In the case of Glenn, this was due to the current sub-commercial status of the Glenn and Glenn North oil discoveries and in the case of the Zermatt licence, it was after taking into account the higher ranked, drill-ready portfolio of exploration opportunities in Licence P2170 (Verbier). With Glenn and Zermatt not featuring in our GBA Development plans, this licence determination does not impact our GBA farm out process, which is ongoing.

Andrew Benitz, CEO of Jersey Oil & Gas, commented:

"JOG's management has taken the pragmatic and cost-effective decision not to proceed with firm well commitments for the non-core Glenn and Zermatt licences in the context of efficient and targeted capital allocation. JOG fully respects the OGA's Asset Stewardship Expectations which govern the delivery of exploration and appraisal work programmes, and we continue to work closely with the OGA as we progress our plans for the Company's core GBA Development project."

Enquiries:

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 ("GBA"), which includes operatorship and 100% working interests in blocks that contain the Buchan oil field and J2 oil discovery and an 100% working interest in the P2170 Licence Blocks 20/5b & 21/1d, that contain the Verbier oil discovery and other exploration prospects.

JOG's total GBA acreage, post 29 August 2021, is estimated by management to contain 172 million barrels of oil equivalent ("MMboe") of discovered P50 recoverable resources net to JOG, in addition to significant exploration upside potential of approximately 168MMboe of prospective resources in close proximity to the Company's planned Buchan platform. JOG has recently concluded the Concept Select phase of an FDP for the Greater Buchan Area and plans to progress into Front-End Engineering and Design (FEED) later this year.

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 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.