29 January 2024

Jersey Oil and Gas plc

("Jersey Oil & Gas", "JOG" or the "Company")

Corporate 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 provide a corporate update following the successful delivery of its stated farm-out strategy during 2023.  A new corporate presentation is also available on the Company's website.

Highlights & Outlook:

§ Delivering on strategy: Greater Buchan Area ("GBA") farm-outs delivered in 2023, enabling the Company to maintain a material 20% GBA working interest and receive certain cash payments alongside Buchan redevelopment funding

§ Strong industry partners: endorsement and funding from two major UK North Sea operators, NEO Energy (Operator) and Serica Energy, the fifth and tenth largest producers in the UK North Sea, respectively

§ Fully funded: the farm-out transactions provide JOG with a full carry on the expenditure ahead of Buchan project sanction and the budgeted development costs included in the approved Field Development Plan ("FDP")

§ Substantial value creation: potential mid case core net asset value of over $250 million based on the draft Buchan FDP submission at $70/bbl oil (inflated at 3% per annum)

§ High-quality development: building a long-life, low carbon production hub to redevelop the Buchan field via the redeployment of the "Western Isles" floating production, storage and offloading ("FPSO") vessel, which will be made electrification-ready in anticipation of a future connection to one of the planned nearby INTOG offshore floating wind developments

§ Material resources: the Buchan redevelopment project unlocks gross resources of 70 million barrels of oil equivalent, with peak production of approximately 35,000 barrels of oil equivalent per day

§ Buchan advancing: good progress being made on the work required ahead of project sanction and regulatory approval targeted for the second half of 2024, targeting first production in late 2026 - the FPSO has been secured, the Environmental Statement submitted and the draft FDP issued to the North Sea Transition Authority

§ Strategic priorities: delivery of Buchan redevelopment sanction and leveraging the team's strengths to maximise shareholder value

§ Agile business: 'right-sized' organisation, with cash running costs reduced to under £3 million per annum - small, focused team with an innovative business culture

§ Cash: £10 million cash at year-end 2023, with further cash receipts totalling approximately £21 million scheduled following completion of the Serica Energy farm-out in Q1-2024 and FDP approval expected later in the year

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

"2023 was a watershed year for the Company.  We delivered on our key strategic objectives - completing the GBA farm-out process and securing a fully funded, material 20% position in the Buchan redevelopment.  Our partners, NEO Energy and Serica Energy, are hugely competent UK North Sea operators and we are delighted to be working alongside them on taking the Buchan project forward.  With the draft Field Development Plan now submitted, we are well on the way to obtaining regulatory approval later this year and achieving the target of first production in late 2026.  As a result of the 2023 transactions, JOG's value and investment proposition has been transformed.  The value of the business is firmly underpinned, with the planned FPSO development solution delivering robust economics and providing the route to full monetisation of the GBA portfolio."

Corporate Presentation

The updated corporate presentation can be accessed on the Company's website at the following location: https://www.jerseyoilandgas.com/investors/presentations/

Enquiries:

- Ends -

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 currently holds a 50% 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."  Licence P2498 contains the Buchan oil field and J2 oil discovery and licence P2170 contains the Verbier oil discovery.  Following completion of the farm-out transaction with Serica Energy (UK) Limited, expected in Q1-2024, the Company will retain a 20% interest in each of the GBA licences.

JOG is focused on delivering shareholder value and growth through creative deal-making, operational success and licensing rounds. Its management is convinced that opportunities exist within the UK North Sea to deliver on this strategy and the Company has a solid track-record of tangible success.

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.

All figures quoted in this announcement are in US dollars, unless stated otherwise.

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.