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On 26 February 2024, Jersey Oil & Gas plc (JOG) completed the farm-out of a 30% interest in its Greater Buchan Area licences to Serica Energy (UK) Limited. JOG received a net milestone cash payment of $6.8 million as a result of this completion. The joint venture partnership for these licences now comprises NEO Energy (50% interest), Serica Energy (30% interest), and JOG (20% interest), with aggregate GBA farm-out transactions providing JOG up to $38 million in cash payments, of which $18 million has been received.
| Date | 26 Feb 2024 |
| Time | 07:00:03 |
| Category | Miscellaneous |
| ID | 3513E |
26 February 2024
Jersey Oil and Gas plc
("JOG" or the "Company")
GBA Farm-Out Completion
Jersey Oil & Gas plc (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, is pleased to announce that, further to the press release issued on 23 November 2023, the Company has now completed its farm-out of a 30% interest in the Greater Buchan Area ("GBA") licences to Serica Energy (UK) Limited ("Serica Energy") and received the associated milestone cash payment of $6.8 million.
The GBA comprises licences P2498 ('Buchan') and P2170 ('Verbier'), with the joint venture partnership now consisting of NEO Energy (50% interest, Operator), Serica Energy (30% interest) and JOG (20% interest).
In aggregate the GBA farm-out transactions provide JOG with up to $38 million in cash payments ($18 million of which has now been received) and a full carry on both pre-sanction costs and capital expenditure in the approved Buchan Field Development Plan.
Enquiries:
|
Jersey Oil and Gas plc
|
Andrew Benitz |
c/o Camarco: 020 3757 4980
|
|
Strand Hanson Limited
|
James Harris Matthew Chandler James Bellman
|
Tel: 020 7409 3494 |
|
Zeus Capital Limited |
Simon Johnson |
Tel: 020 3829 5000
|
|
Cavendish Capital Markets Limited
|
Neil McDonald Leif Powis
|
Tel: 020 7220 0500 |
|
Camarco
|
Billy Clegg Rebecca Waterworth
|
Tel: 020 3757 4980 |
- Ends -
Further Information:
The cash paid by Serica Energy at completion totalled $7.5 million, of which $0.7 million is associated with a portion of the costs incurred by NEO Energy ("NEO") on JOG's behalf since the 1 April 2023 economic effective date of the transaction. This amount will be paid to NEO by JOG. The net cash payment to JOG is therefore $6.8 million.
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 20% 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.
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.