GBA Farm-Out Completion
22 June 2023
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
GBA Farm-Out Completion
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, is pleased to announce that it has completed the farm-out transaction with NEO Energy ("NEO"). The companies each now hold a 50% interest in the licences that comprise the Greater Buchan Area ("GBA"), being P2498 ("Buchan") and P2170 ("Verbier"), with NEO set to become the operator as part of the transaction.
The Company is also pleased to report that the GBA partners are well advanced with selection of the Buchan re-development solution and it expects to be able to provide an update on this shortly.
Farm-Out Transaction Summary
As previously announced, in exchange for entering into the agreements to divest a 50% working interest and operatorship in the GBA licences to NEO, the Company will receive:
§ $2 million cash payment on completion of the transaction - now received
§ a full carry for JOG's 50% share of the estimated $25 million cost to take the Buchan field through to Field Development Plan ("FDP") approval
§ $9.4 million cash payment upon finalisation of the GBA development solution
§ $12.5 million cash payment on approval of the Buchan FDP by the North Sea Transition Authority ("NSTA")
§ a 12.5% carry of the Buchan field development costs included in the FDP approved by the NSTA; equivalent to a 1.25 carry ratio
§ $5 million cash payment on each FDP approval by the NSTA in respect of the J2 and Verbier oil discoveries
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are delighted to have completed the farm-out transaction and to be swiftly moving forwards with finalisation of the GBA development solution. With the route and the funding secured for preparation of the Buchan Field Development Plan, our attention now turns to unlocking further value by securing an additional GBA partner ahead of FDP approval and retaining a fully carried 20-25% interest in the development programme."
Enquiries:
|
Jersey Oil and Gas plc
|
Andrew Benitz |
C/o Camarco: 020 3757 4980 |
|
Strand Hanson Limited
|
James Harris Matthew Chandler James Bellman
|
Tel: 020 7409 3494 |
|
Zeus Capital Limited |
Simon Johnson |
Tel: 020 3829 5000
|
|
finnCap Ltd
|
Christopher Raggett Tim Redfern
|
Tel: 020 7220 0500 |
|
Camarco
|
Billy Clegg Rebecca Waterworth
|
Tel: 020 3757 4980 |
- Ends -
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 50% interest in each of licences P2498 (Blocks 20/5a, 20/5e and 21/1a) and P2170 (Blocks 20/5b and 21/1d) located in the UK Central North Sea and referred to as the "Greater Buchan Area." Licence P2498 contains the Buchan oil field and J2 oil discovery and Licence P2170 contains the Verbier oil discovery and other exploration prospects.
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.
Forward-Looking Statements
This announcement may contain certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with an oil and gas business. Whilst the Company believes the expectations reflected herein to be reasonable in light of the information available to it at this time, the actual outcome may be materially different owing to factors beyond the Company's control or otherwise within the Company's control but where, for example, the Company decides on a change of plan or strategy.
All figures quoted in this announcement are in US dollars, unless stated otherwise.
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, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.
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