Jersey Oil & Gas PLC · LSE:JOG
Jersey Oil & Gas — Investor Presentation (January 2024)
19 slides from Jersey Oil & Gas's investor presentation, January 2024
Slide 1: Corporate Presentation: Delivering on Strategy
Corporate Presentation January 2024 Delivering on Strategy
Slide 2: Disclaimer
Disclaimer The information contained in this document (the “Corporate Presentation”) has been prepared by Jersey Oil and Gas Plc (“JOG”). JOG is a UK company quoted on AIM, a market operated by London Stock Exchange plc. This Corporate Presentation has not been fully verified and is subject to poten
Slide 3: Jersey Oil & Gas Overview
Jersey Oil & Gas Overview Who Are We Greater Buchan Area & Joint Venture Partners London listed company – AIM:JOG Aberdeen Verbier 20% fully carried interest in major UK North Sea redevelopment1 P2170 (Verbier) J2 Funded to Buchan first oil1 – scheduled for 2026 Low carbon vision Led by a
Slide 4: Why Invest
Why Invest Core Buchan Asset – fully funded, low carbon North Sea redevelopment with robust economics GBA hub development underpinned by lower risk Buchan field Quality Experienced, well-funded joint venture established through farm-out transactions Development Strong, resilient economics Shor
Slide 5: Ambition Backed by Actions… Delivering on our Strategic Plan
Ambition Backed by Actions… Delivering on our Strategic Plan Demonstrating the Company’s expertise in value creation through asset development and accretive M&A deals Strategic Transactions Executed GBA Licence Aggregation – FPSO Equinor / CIECO Transactions Farm-Out Acquisition Farm-Out 2020 2021 2
Slide 6: GBA Farm-Out Transactions Successfully Secured
GBA Farm-Out Transactions Successfully Secured Delivers access to material cash receipts and a fully funded long-term stable income stream Farm-Outs Value Fully Fully funded Buchan redevelopment project – unlocking 70 MMboe (100%), Funded peak production ~35kboe/d1 $268M Zero Capex Clear path to d
Slide 7: Buchan Field Redevelopment Plan
Buchan Field Redevelopment Plan ~70MMboe >100MMboe ~35kboe/d £850-950M Late-2026 Gross Buchan Resources Gross GBA Resources Peak Production Development Capex (100%) Forecast First Production Subsea Wells: Up to five gas-lifted producers / two water injectors Subsea Infrastructure: Flexibility to tie
Slide 8: R3… Redevelopment, Re-use and Electrification Ready
R3… Redevelopment, Re-use and Electrification Ready GBA development characteristics deliver lowest full-cycle carbon footprint development solution Buchan Existing Electrification Redevelopment Infrastructure Ready Redeveloping a known reservoir Re-use of infrastructure Ready for electrificati
Slide 9: Buchan Redevelopment… Maximising Recovery
Buchan Redevelopment… Maximising Recovery Gross Resources1 70MMboe ~35kboe/d Peak Production1 Deviated Producers Targeting Remaining Oil High Porosity Interval with Significant Oil Water Injection Zone Water Injectors for Initial OWC Pressure Maintenance & Oil Displacement BUCHAN HISTORY: Well Under
Slide 10: Infrastructure Re-use…
Infrastructure Re-use… FPSO Specifications Hull Diameter 70m Liquids Processing 50kbbl/d Gas compression 32MMscf/d Water injection 75kbbl/d Storage 400kbbl FPSO Secured Acquisition Signed Q3-2023 ‘Western Isles’ Floating, Production, Storage and Offloading (FPSO) vessel acquisition JOG’s 20% Cos
Slide 11: Electrification Ready… Supporting the Energy Transition
Electrification Ready… Supporting the Energy Transition GBA hub in-sync with industry decarbonisation strategy 5.8 kgCO2 /bbl with FPSO electrification1 Electrification FPSO to be electrification ready ahead of redeployment – Plan for future connection to offshore wind power Verbier P2170 J2 Suppo
Slide 12: Illustrative Core NAV based on Buchan Mid Case FDP Submission
Illustrative Core NAV based on Buchan Mid Case FDP Submission Material disconnect between market cap. and potential core value Undiscounted Buchan Life of Field Cash Flow Core Net Asset Value $M | JOG Share $M | NPV-10 Core NAV $253M $48M >3x $420M Trading Value Buchan Only NAV $213M $81M $629M $1,1
Slide 13: Illustrative 3-Yr Cash Flow based on Buchan Mid Case FDP Submission
Illustrative 3-Yr Cash Flow based on Buchan Mid Case FDP Submission 3-Yr Cash Flow per Barrel 3-Yr Cash Flow $/boe | JOG Share $M | JOG Share $85M Post-Tax $34/boe Cash Flow $188M $500M $220M $408M Tax $31/boe G&A Cash Field Costs $15/boe Breakeven Revenue Field Costs / G&A Free Cash Flow Tax Post-T
Slide 14: Illustrative Core Valuation Range… based on Mid Case FDP Submission
Illustrative Core Valuation Range… based on Mid Case FDP Submission GBA Phase 1 – Buchan GBA Phase 2 Targeting Sanction 2024 | First Production Late 2026 Hub Feeder Fields 3.3x Multiple Upside value 2.9x from full GBA portfolio Multiple – Buchan, J2, Verbier, $253M exploration $220M 4.5x NAV multipl
Slide 15: GBA… the Full Picture
GBA… the Full Picture Buchan development plan provides the springboard for monetising the GBA portfolio Joint venture working interests aligned across the 24 MMboe GBA licences ~10 kboe/d ~20292 12 MMboe ~8 kboe/d 60 >100MMboe gross resources plus >100MMboe ~20282 MMboe3 Verbier exploration upsi
Slide 16: Challenges and Mitigations to Realising Potential Value
Challenges and Mitigations to Realising Potential Value Project status, characteristics and fiscal value mitigate against main perceived risks Investment Key Challenges Mitigations Advanced redevelopment project – targeting approval in H2-2024 Oil & Gas Regulatory Core energy transition credenti
Slide 17: Clear Strategic Priorities… Leveraging our Strengths
Clear Strategic Priorities… Leveraging our Strengths Active joint venture management role required as part of finalising the development execution plan and securing the requisite approvals Regulatory approvals #1 Buchan Project Sanction Front End Engineering & Design and major contracting strate
Slide 18: Experienced Board and Executive Team
Experienced Board and Executive Team Strong team with substantial North Sea development, commercial and transactional experience Les Thomas – Non-Executive Chairman Andrew Benitz – Chief Executive Officer Over 40 years oil and gas industry experience in various Jersey Oil & Gas Founding Director
Slide 19: Fully Funded Redevelopment Defined
Compelling Outlook Major milestones delivered… creating substantial value Fully Funded Redevelopment Defined Excellent farm-out deals secured Development plan agreed by Joint Venture Strong, well-funded Joint Venture Draft FDP submitted to NSTA Substantial cash plus full 20% Buchan FPSO
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