Jersey Oil & Gas plc (JOG) said it had a clear pathway to its commercial future following the farm-out of its Greater Buchan Area licences.
PREPARATIONS
Interim six-month results to 30 June, show the company held approximately £5.6 million cash with no debt.
Loss for the period, before and after tax, was approximately £2.9m (2022: £1.2m).
Cash costs of £2.7m were partially offset by £1.7m received on completion of the farm-out transaction with NEO Energy.
JOG expects further payments on re-development milestones including $9.4m on acquiring a floating, production, storage and offloading vessel and $12.5m on approval of the Buchan oil field development plan.
The company also will also be carried for 12.5% of development expenditure to first oil for its 50% retained interest.
Progress has been made since the farm-out with NEO Energy with negotiations of a full term agreement for an FPSO “advancing”.
NEO has mobilised to begin front end engineering and design and preparations are underway for the environmental statement on Buchan’s redevelopment programme.
JOG continues to engage with potential partners for a further GBA farm-out to result in a fully carried 20-50% interest.
VALUE
Chief executive officer Andrew Benitz added: “The first half of the year has been a pivotal period in the history of the company.
“With the farm-out to NEO Energy completed, the GBA development solution locked down and the licences covering the area extended, we now have a clear pathway to monetising the resource base we have built up over recent years.
“We are encouraged by the collaborative progress being made by NEO and look forward to finalising the acquisition agreements for the FPSO, creating additional value through securing further farm-outs and moving onwards with the various workstreams required to get to field development plan approval next year.”