Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF) chief executive Andrew Benitz has described 2023 as a “watershed year” for the North Sea, as progress with the Greater Buchan Area project has seen the company’s “value and investment proposition transformed".
In the year, Jersey successfully executed farm-outs in the Greater Buchan Area (GBA), securing partners to drive the funding of field development.
Jersey now retains a material 20% stake in the project whilst holding a meaningful amount of cash and having a substantial amount of project costs ‘carried’ by its new partners.
The company said it is now fully funded for the Buchan project as a result of the farm-out transactions.
Operationally, meanwhile, significant progress has been made towards project sanction and regulatory approval, which is targeted for the second half of this year – which would put it on track for first production before the end of 2026.
"2023 was a watershed year for the company,” Benitz said in the statement.
He added: “Our partners, NEO Energy and Serica Energy, are hugely competent UK North Sea operators and we are delighted to be working alongside them on taking the Buchan project forward. With the draft Field Development Plan now submitted, we are well on the way to obtaining regulatory approval later this year and achieving the target of first production in late 2026.
“As a result of the 2023 transactions, JOG's value and investment proposition has been transformed.
“The value of the business is firmly underpinned, with the planned FPSO development solution delivering robust economics and providing the route to full monetisation of the GBA portfolio."
Jersey Oil & Gas ended 2023 with £10 million in cash, and it expects it will be due around £21 million in 2024 through contingent payments under the farm-out deal with Serica.