Tuesday 31 August 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 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."