AIM-listed Jersey Oil & Gas, an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, has announced its unaudited Interim Results for the six month period ended 30 June 2025.
Highlights & Outlook
- Significant engagement undertaken with the UK government and industry bodies concerning the regulatory and fiscal consultations that will impact the long-term direction of the UK North Sea oil and gas industry
- Work underway to prepare the necessary addendum to the Buchan Horst ("Buchan") Environmental Impact Assessment resulting from the revised guidance issued by the Offshore Petroleum Regulator for the Environment and Decommissioning regarding the inclusion of Scope 3 emissions
- Continued progress made with a number of pre-sanction technical and commercial workstreams, including subsurface modelling studies, the specification of the optimal drilling completion plan for the requisite production wells and the agreement of commercial terms for the utilisation of gas export infrastructure
- While the agreement to acquire the "Western Isles" floating production, storage and offloading ("FPSO") vessel was terminated by Dana Petroleum after reaching its longstop date in March 2025, the possibility remains to recontract the vessel at an appropriate time, with NEO NEXT Energy remaining a 23% owner of the FPSO vessel
- Second Term of the Buchan P2498 licence extended by 24 months to 28 February 2027. The extension was requested to provide JOG and its joint venture partners with the time required to finalise the Buchan Field Development Plan
- Solid financial position, with cash at the end of H1-2025 of £11.3 million and the total annualised running cost of the business reduced by approximately 50% to an expected £1.5 million
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
'Against a challenging backdrop where the North Sea oil and gas industry has been unnecessarily damaged by the 78% EPL tax rate, we have positioned the Company to withstand the on-going fiscal and regulatory uncertainty by halving the cost base and maintaining a strong cash position.
We hold an interest in a potentially incredible prize in the form of our carried interest to first oil on the Buchan redevelopment project. This has the potential to unlock significant UK investment, create over 1,000 well paid jobs and ultimately realise hundreds of millions in future tax payments to the exchequer. We urge the government to complete its consultation process on the future fiscal regime and remove the EPL in order to establish a playing field that facilitates future investments. Homegrown energy should be prioritised over more carbon intensive energy imports and with Buchan, we have a great opportunity to be at the forefront of championing a fully integrated production hub that aligns with the industry's decarbonisation strategy.'
Source: Jersey Oil & Gas
