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UK Fiscal Update
Jersey Oil and Gas plc has noted the UK Government's response regarding changes to the oil and gas tax regime, introducing the Oil and Gas Price Mechanism (OGPM) which will replace the Energy Profits Levy. The OGPM will be revenue-based, levying a 35% tax on revenues exceeding set threshold prices, with independent annual thresholds for oil and gas. These thresholds are set at $90/bbl for oil and 90p/therm for gas in FY2026-27, projected to rise to approximately $98/bbl and 98p/therm by 2030, with the OGPM coming into effect on April 1, 2030, or earlier if current EPL price floors are breached. The company will now assess the impact of these changes on the Buchan project with its joint venture partners. Disclaimer*
About this update from Jersey Oil & Gas Plc
27 November 2025 Jersey Oil and Gas plc ("Jersey Oil & Gas", "JOG" or the "Company") UK Fiscal Update Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, notes the UK Government's response to the consultation concerning future changes to the UK oil and gas tax regime. The subject of the consultation was the development of a permanent successor to the Energy Profits Levy ("EPL"), in the form of the Oil and Gas Price Mechanism ("OGPM"). The consultation response states that: § The OGPM will come into effect either on 1 April 2030 or earlier if the existing price floors that pertain to the EPL are passed (being $74/bbl and 57p/therm in the last financial year) § The Government has decided to adopt a revenue-based model for the calculation of windfalls under the OGPM, with a 35% tax being levied only on the revenues generated above the threshold prices § 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 § The OGPM when in effect returns the tax rate to the 40% headline rate in the permanent regime, with the OGPM only applying to oil or gas revenues in the event the respective commodity price is unusually high With clarity on the longer-term tax regime now provided, the Company will be working with the Buchan joint venture partners, NEO Next Energy and Serica Energy, to assess the impact of these changes on the Buchan project. 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 Tel: 020 7220 0500 Camarco Billy Clegg Rebecca Waterworth Tel: 020 3757 4980 - Ends - Notes to Editors Jersey Oil & Gas (AIM:JOG) is a UK ene...
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