Last checked at 4 Jan 2021 07:00
4 January 2021
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
TGS Dispute Settlement Payment
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 announce that it has reached a settlement with TGS-Nopec Geophysical Company ASA ("TGS") pursuant to an agreement entered into with TGS on 9 February 2018. Under the agreement, TGS claimed uplift payments from JOG totalling US$1,050,838 in respect of: a) licence awards to Jersey Petroleum Limited ("JPL") in the Oil & Gas Authority's ("OGA's") 31st Supplementary Offshore Licencing Round; and b) the acquisition by JPL of Equinor UK Limited's 70% interest in Licence P2170 (Verbier). Jersey Oil and Gas has disputed the validity of both claims, following which two hearings have taken place in the Norwegian courts. On the basis of legal advice received, JOG has negotiated and agreed a final settlement payment to TGS of US$850,000.
Following this payment, which is settling a one-off and isolated dispute, the group's estimated cash position at 31 December 2020 was c.£5m, which is c.£3m ahead of our initial 2020 budgeted year-end cash balance.
We look forward updating shareholders on the group's Greater Buchan Area development project during the course of Q1 2021.
Enquiries:
Jersey Oil and Gas plc
| Andrew Benitz, CEO | C/o Camarco: Tel: 020 3757 4983 |
Strand Hanson Limited | James Harris Matthew Chandler James Bellman | Tel: 020 7409 3494 |
Arden Partners plc | Paul Shackleton Benjamin Cryer | Tel: 020 7614 5900 |
BMO Capital Markets Limited | Jeremy Low Tom Rider | Tel: 020 7236 1010 |
Camarco | Billy Clegg James Crothers | Tel: 020 3757 4983 |
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 and Glenn oil discoveries and an 100% working interest in the P2170 Licence Blocks 20/5b & 21/1d (subject to OGA approval of the acquisition of CIECO V&C UK Limited as announced on 26 November 2020), that contains the Verbier oil discovery and other exploration prospects.
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, which includes 4 drill ready prospects with combined estimated P50 prospective resources of 222 MMboe that are within close proximity of the planned GBA hub development. JOG is currently progressing the concept select phase of an 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.