Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF) is tipped for very substantial upside, as the house broker repeated a 'buy' rating. It comes as the small-cap North Sea oil and gas firm this morning confirmed it is continuing work on the best development plan for Buchan, after the UK Government’s regulatory and fiscal consultations were clarified.
Cavendish said an optimal approach could improve project value by aligning spending with the Energy Profits Levy timetable, with the broker pointing to an 84.25% tax offset for qualifying investments up to March 2030.
Also, the note highlighted the benefit of generating revenues after March 2030 when the permanent 40% tax rate applies.
Describing Jersey Oil & Gas as being in a solid position to fund its programme, Cavendish repeated its 'buy' rating, which comes with a 537p target price (compared to today's price of 103.5p).
The company held some £11 million cash at year-end 2025 and had annual cash costs of £1.5 million following a 2024 restructuring, the broker noted.
Looking ahead, Cavendish said it now assumes FDP approval and a US$20 million farm-out payment will land in late 2027.