Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF) shares gained in Wednesday's early trade after a North Sea project update, following regulatory and fiscal consultations.
The small-cap oil firm said its business is "right-sized" for its current activities.
Noting the context, the company acknowledged that the UK's Energy Profits Levy will remain in place until 1 April 2030, while the successor Oil and Gas Price Mechanism introduces a revenue-based windfall tax model above defined commodity price thresholds.
"It is clear that the regulatory and fiscal consultations the Government has undertaken since coming into office in July 2024 have disrupted the UK North Sea oil and gas industry and stifled investment activities," said chief executive Andrew Benitz said.
"However, the outcome of the consultations have now been finalised and the fiscal terms within which to best optimise investment decisions have been set. These terms point to a longer investment cycle over the coming years, which maximises value across the applicable fiscal regimes."
Jersey Oil & Gas plans further work during 2026 to assess the optimal development solution for the Buchan field, including alternatives to the previously proposed FPSO concept. The company highlighted the strengthening of its joint venture partners following consolidation activity involving NEO Energy and Serica Energy.
Benitz added: "For Buchan, taking the time now, to verify and engineer the best possible development solution within that cycle, should ultimately enhance the overall value of the project for all parties... our joint venture partner and Buchan field operator, NEO Next+, on completion of its latest deal, will establish itself as the largest operator and producer in the UK North Sea.
"This represents an exciting step, both for us to be working alongside the leading player in the basin and to be part of one of the key growth opportunities in its asset portfolio."
In London, JOG shares were on the front foot, and in opening trades saw as high as 115p, and, by mid-morning, were up 1.45%, changing hands at 105p.