Greater Buchan Area Update
Summary by AI BETAClose X
6th August 2026
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Greater Buchan Area Update
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 the North Sea Transition Authority ("NSTA") has approved an extension to the Second Term of the P2170 "Verbier" licence as part of aligning the duration with that of the P2498 "Buchan Horst" ("Buchan") licence.
GBA Licences
The "Second Term" of a UK offshore oil and gas licence sets the period in which the licencees are required to obtain Field Development Plan ("FDP") approval for the area in order to subsequently move into the "Third Term", which covers the development and production phase of activities for the life of a field.
The Second Term of the P2170 licence has now been extended by approximately six months, to 28 February 2027, thereby aligning it with the corresponding duration of the P2498 Buchan licence. Aligning the Second Terms of both Greater Buchan Area ("GBA") licences logically reflects the NSTA's objectives for an integrated "Area Plan", which has always been regarded by the joint venture partners as requiring a phased development solution led by the initial exploitation of Buchan's resources.
As planned, a request to extend the Second Term of the Buchan licence will be made to the NSTA towards the end of this year, with the request incorporating an overall development schedule that includes a further extension request for the P2170 licence.
GBA Activities
As previously announced, the slowdown in Buchan development activities that has resulted from the continuing industry uncertainties created by successive UK governments, has led to the optimal development solution being re-assessed within the context of a wider lens and a longer execution schedule than was initially envisaged. While redeployment of the "Western Isles" floating production, storage and offloading vessel was set out as the solution in the draft FDP submitted to the NSTA, it is recognised that the passage of time means that other potential production solutions warrant further screening and consideration.
As part of its central objectives for managing the future resources of the UK North Sea, the NSTA is seeking to ensure that the GBA joint venture continues to look at the wider opportunity to connect volumes in the vicinity of a Buchan based production hub as part of an integrated evaluation and plan with potential third-party resource owners.
Work on these activities will continue into 2027 and the joint venture partners are in the process of establishing a work plan and budget for next year that will support progression of the GBA and the licence extensions.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are pleased to receive a licence extension on our existing Verbier licence, which now aligns the timing of both of our GBA licences, as we continue to work on engineering the optimal development solution for the area. As we have always highlighted, there is an exciting opportunity to unlock the resources across the area through the development of a Buchan-led production hub.
"We continue to urge the government to work constructively with industry on critical oil and gas development approvals and bring an early end to the Energy Profits Levy, which has unquestionably led to a significant slowdown in investment activity. The extended approval processes for developments that the UK's regulatory landscape has created presents a complicated backdrop for progressing key projects. With hydrocarbons continuing to account for around 75% of total energy usage in the UK, we believe that homegrown energy should always be prioritised over imports and we are encouraged that there are early indications following the recent cabinet changes of potential support for our domestic industry. This support will only work through delivery of the fiscal and regulatory reforms required to unlock long term investment, protect jobs, strengthen energy security and support the energy transition."
Enquiries:
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Jersey Oil and Gas plc
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Andrew Benitz |
c/o Camarco: 020 3757 4980
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Strand Hanson Limited
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James Harris Matthew Chandler James Bellman
|
Tel: 020 7409 3494 |
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Zeus Capital Limited |
Simon Johnson |
Tel: 020 3829 5000
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Cavendish Capital Markets Limited
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Neil McDonald
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Tel: 020 7220 0500 |
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Camarco
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Billy Clegg Rebecca Waterworth |
Tel: 020 3757 4980 |
- Ends -
Notes to Editors
Jersey Oil & Gas (AIM:JOG) is a UK energy company focused on creating shareholder value through the development of oil and gas assets and the execution of accretive transactions.
The Company has a focused asset portfolio centred on developing homegrown North Sea resources that support the UK's energy requirements as it transitions towards net zero. JOG holds a 20% 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" ("GBA"). Licence P2498 contains the Buchan Horst ("Buchan") oil field and J2 oil discovery and licence P2170 contains the Verbier oil discovery.
JOG's strategy is focused on unlocking the organic value of its GBA assets, combined with the pursuit of potential asset acquisitions that bring cash flow, diversity and quality investment opportunities into the portfolio. The Company's Board and Executive team have a wealth of experience in managing and growing publicly listed energy companies and a strong track-record of value creation in the UK North Sea's oil and gas sector.
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.
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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