Thursday 26 September 2019

Jersey Oil & Gas, an independent upstream oil and gas company ‎focused on the UK Continental Shelf ("UKCS") region of the North Sea, announced its interim results for the six months ended 30 June 2019.

Highlights:

- Strong cash position of approximately £15.5m at period end

- Drilled the 20/05b-14 Verbier appraisal well which, although failing to encounter Upper Jurassic sands, provided the P2170 JV partners with valuable well data

- Received the final instalment of the processed data from the 2018 PGS 3D seismic survey, which will be incorporated with data from the 20/05b-14 Verbier appraisal well to provide a Verbier licence full re-evaluation

- Received £750,000 in settlement from Total E&P UK Limited ("TEPUK") in relation to the termination of its 2013 farm-in to licence P2032

Post Period End:

- Transformational licence awards in the Oil and Gas Authority's ("OGA") 31st Supplementary Offshore Licensing Round in the UK North Sea

- Greater Buchan Area awards include 100% equity and operatorship of the Buchan Field together with the J2 and Glenn discoveries

- Awards add an estimated 119 million barrels of discovered mean recoverable resources net to JOG

- Three month 50% option granted to Equinor for Blocks 20/5d and 21/1a (the "Buchan Blocks")

Outlook:

- Field Development Planning ("FDP") work underway on the Greater Buchan Area hub development project

- Adopting key Environment, Social and Governance principles to ensure that we develop our resources in a sustainable, low carbon and responsible manner

- Hiring key project team members to enhance our technical and project management capabilities

- Appointing key contractors to undertake Appraise and Select phases of the FDP work

- Commissioned a new independent Competent Person's Report ("CPR") for the Buchan Blocks, which contain the Buchan Field and J2 discovery

- Progressing full subsurface re-interpretation / validation of licence P2170 using the new final processed data from the 2018 PGS 3D seismic survey

- Undertaking independent work in respect of licence P2170 to support potential future drilling activity

- Potential production acquisition opportunities continue to be pursued

Andrew Benitz, CEO of Jersey Oil & Gas, commented:

"The first half of 2019 has been transformational for JOG, we have begun work on a full re-evaluation of the P2170 licence area and after significant effort and investment JOG was awarded 100% working interest and operatorship of four blocks in the Greater Buchan Area. This has significantly enhanced the Company's resource base of discovered oil volumes.

The Greater Buchan area is a very material and scalable project, which has the clear potential to deliver significant shareholder value beyond what we have already achieved. We are dealing with well-known, good quality, light oil fields and discoveries in a relatively benign and shallow part of the Central North Sea, which are located within UK waters, near good surrounding infrastructure for export and represent a potentially valuable energy resource for both JOG and the UK.

The board and I look forward to develop this vital resource sustainably and would like to thank shareholders for their ongoing support and look forward to updating them on further progress."

Full announcement here.