Business
Final Results for the Year Ended 31 December 2022
Final Results for the Year Ended 31 December 2022.
About this update from Jersey Oil & Gas Plc
[{"type":"text","content":"\n\n24 May 2023\n \nJersey Oil and Gas plc\n(\"Jersey Oil & Gas\", \"JOG\" or the \"Company\")\n \nFinal Results for the Year Ended 31 December 2022\n& Annual General Meeting Notice\n \nJersey 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 announce its audited financial results for the year ended 31 December 2022 and the date of the forthcoming Annual General Meeting (\"AGM\").\n \nHighlights\n§ In April 2023 JOG executed agreements to farm-out a 50% working interest in the GBA licences to NEO Energy (\"NEO\") in exchange for various cash payments and the carry of a proportion of the Company's future development expenditure\n§ The Company has secured a technically and financially strong partner to move the GBA development forwards into production, with NEO set to become operator of the GBA licences following completion of the transaction\n§ In addition to milestone related cash payments associated with the Buchan field development totalling approximately $24 million, the transaction results in the Company being fully carried for its $12.5 million share of costs up to Field Development Plan (\"FDP\") approval\n§ Following FDP approval, JOG will be carried for 12.5% of its 50% share of the Buchan field development costs by NEO (equivalent to a 1.25 carry ratio)\n§ With the route to monetisation of the GBA resources established, the Company has the opportunity to deliver long term shareholder value through unlocking the multiple value catalysts that stem from execution of the GBA development programme\n§ It is anticipated that the farm-out will be completed around the end of the second quarter of 2023\n \nGBA Development\n§ During 2022 the Company was actively engaged with multiple counterparties regarding the planned divestment of an interest in the GBA licences\n§ Technical and commercial diligence has been completed on the range of different development options that could be used for future production from the GBA\n§ With the introduction of NEO to the GBA, the partnership will work together to finalise selection of the preferred development solution from a short list of attractive options, with first production targeted for 2026\n§ Upon selection of the preferred development solution, th...