Business
Corporate Update
Jersey Oil and Gas plc has provided a corporate update highlighting the finalisation of UK Government regulatory and fiscal consultations, which include the continued application of the Energy Profits Levy until April 2030 and the introduction of the Oil and Gas Price Mechanism thereafter. The company maintains a solid financial position with approximately £11 million in cash and no debt, and its 20% share of Buchan project expenditure is fully carried by joint venture partners NEO Energy and Serica Energy. Significant corporate consolidations among partners, including NEO's merger to form NEO Next+, position the Buchan development favourably, with work planned to assess optimal development solutions, including the Western Isles FPSO and other potential production methods, within an extended investment horizon. The company also holds over £100 million in UK tax allowances and is evaluating both domestic and international acquisition opportunities. Disclaimer*
About this update from Jersey Oil & Gas Plc
14 January 2026 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 and outlook for the year ahead. Highlights § Outcome of the UK Government's regulatory and fiscal consultations have been set - providing an opportunity to optimise the investment programme for development projects like Buchan § Work planned to assess the optimal Buchan development solution within the re-set investment horizon § Buchan joint venture partners are materially growing through further corporate consolidations - Buchan well positioned § JOG's solid financial position maintained - the business is right-sized for its current activities and focused on achieving its growth potential UK Oil & Gas Industry Landscape § Following the lengthy regulatory and fiscal consultations carried out by the UK Government during 2025, clarity was finally obtained in the latter part of the year on both the future application of environmental regulations and the longer-term fiscal framework for the oil and gas industry. The environmental consultation confirmed the need for oil and gas developments like Buchan Horst ("Buchan") to assess the Scope 3 emissions arising from the project as part of its regulatory approval submissions. In terms of the fiscal regime, the consultation resulted in the continued application of the Energy Profits Levy ("EPL") in its current form until 1 April 2030, which implies a marginal tax rate of 78% for the industry. The successor regime, the Oil and Gas Price Mechanism ("OGPM"), replaces the EPL with a revenue-based model for calculating windfall profits, that levies a 35% tax only on the revenues generated above applicable commodity threshold prices (in addition to the corporate and supplementary tax rate of 40%). § Under the OGPM two independent threshold price points will be set annually, one for oil (in dollars per barrel) and one for gas (in pence per therm). The thresholds in financial year 2026-27 have been set at $90/bbl for oil and 90p/therm for gas - they will be adjusted annually in line with CPI inflation and are projected to be around $98/bbl and 98p/therm by 2030. When in...
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