Update re GBA Development Project
31 August 2021
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Update re GBA Development Project
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 on, inter alia, the electrification potential for its Greater Buchan Area ("GBA") Development Project (the "GBA Development").
Highlights
· Significant stakeholder interest in working collaboratively to enable the GBA Development to become an integral part of an area-wide electrification project
o Regional electrification offers many potential benefits to both GBA Development stakeholders and owners of neighbouring facilities, through possible reductions in both capex and opex
· The GBA Development's pre-FEED (Front-End Engineering and Design) offshore work programme, which includes environmental, geotechnical and geophysical surveys of the cable route for power from shore and pipeline route data requirements has been progressed with the data acquisition stage now completed
· FEED entry, together with previously advised Final Investment Decision ("FID") and first oil milestone dates, will be re-phased once near-term studies on regional electrification have progressed to provide sufficient definition of the options available
· The Company's GBA Development farmout process remains ongoing
The Company's management maintains its view of the importance of acting in a responsible manner in pursuit of the industry's sustainability goals and it is therefore deemed essential for JOG to work collaboratively with all stakeholders in order to deliver an optimum and sustainable development solution to support the UK's economy, as the UK progresses through its targeted energy transition. As such, JOG has furthered engagement in multi-party conversations on the topic of electrification with the UK's Oil and Gas Authority, oil and gas industry parties and potential third-party funding providers (infrastructure funding businesses).
We are excited by the potential for the GBA Development to be the first new development in the UKCS to be fully powered by electricity and firmly believe it can play a regional electrification role in collaboration with other asset owners and producers. Such collaboration could materially reduce capex and opex through shared investment, thereby further enhancing the economics of our planned GBA Development.
Accordingly, JOG has elected to re-phase FEED entry, FID and first-oil milestone dates in due course in order to allow sufficient time for the incorporation of regional electrification studies in collaboration with other offshore operators/owners into our FEED workflows.
In parallel, JOG has continued to progress its pre-FEED work programme which includes environmental, geotechnical and geophysical surveys of the cable route for power from shore, jacket and piling data and pipeline route data requirements. The data acquisition stage of such surveys was completed on 14 August 2021 with analysis of the acquired data ongoing, which will form inputs into our environmental impact assessments for the GBA Development.
Andrew Benitz, CEO of Jersey Oil & Gas, commented :
"Our GBA Development represents a major opportunity in the UK Central North Sea to extract locally sourced hydrocarbons profitably and at low-cost, with basin-leading low carbon emissions. The UK will continue to require responsibly produced hydrocarbons to support its planned energy transition for some time to come. We are determined to play as responsible a role in this as possible recognising that industry underinvestment risks driving prices higher, thereby making energy less affordable for consumers."
Enquiries :
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Jersey Oil and Gas plc
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Andrew Benitz, CEO |
C/o Camarco: Tel: 020 3757 4983 |
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Strand Hanson Limited |
James Harris Matthew Chandler James Bellman
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Tel: 020 7409 3494 |
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Arden Partners plc |
Paul Shackleton
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Tel: 020 7614 5900 |
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finnCap Ltd |
Christopher Raggett Tim Redfern |
Tel: 020 7220 0500 |
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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 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 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) following greater clarity being obtained on regional electrification options and funding.
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.
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