Thursday 4 March 2021

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 the key findings of its detailed and comprehensive Concept Select Report ("CSR") in respect of its Greater Buchan Area ("GBA") Development Project which contains an aggregate 172 million barrels of oil equivalent ("MMboe") 2C contingent resource estimates of light sweet crude and associated gas. The planned development is centred on resuming production at the Buchan oil field and producing the J2 and Verbier oil discoveries as well as other existing and yet to find discoveries within the GBA as future upside.

Highlights

- A three-phase development centered around a single integrated wellhead, production, utilities and quarters platform located at the Buchan field - the GBA hub

- The development concept is based on P50 Technically Recoverable Resource estimates of, in aggregate, 172 MMboe of light sweet crude and associated gas within the Core GBA, which includes the Buchan oil field and J2 and Verbier oil discoveries

- JOG aims to deliver production from the planned GBA Development Project at an industry leading carbon intensity level due to Platform Electrification, as seen in certain fields in the Norwegian sector

  - Overall carbon emissions from the GBA with platform electrification estimated by management at <1kg/boe

- Project economic estimates by management for the Core GBA selecting Platform Electrification as our preferred low carbon power solution, are:

- Pre-tax free cashflow of US$6.4 billion with an NPV (pre-tax) of US$1.7 billion

- Payback period under 3 years

- Project internal rate of return ("IRR") greater than 25%

- Development costs (Capex and Opex) based on today's values are estimated to be approximately US$30/boe

- -Capex estimate for Phase 1 of approximately £1 billion (including 20% contingency)

 Opex estimate during plateau production of US$8/boe to US$9/boe

- The GBA hub nameplate capacity has been set at 40,000 barrels of oil per day ("bopd") with expected plateau production of more than 3 years

- Significant upside potential from 4 drill ready exploration prospects within the GBA that have combined prospective resource estimates totaling an additional 219 MMboe

- The close proximity of the GBA exploration prospects, will enable their development, on discovery, as low cost subsea tie-backs to the planned GBA hub

- A discovery in line with P50 estimates at any of the drill ready exploration prospects has the potential to extend plateau production significantly and materially increase project economics