Cavendish sees more than fivefold upside in Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF), arguing that the AIM-listed North Sea developer remains well placed to unlock value from its Greater Buchan Area interests.
The stockbroker, in a note, repeated a ‘Buy’ recommendation and a 537p target price, implying a 407% premium to the current 106p share price.
“Buchan remains an attractive project for JOG and its JV partners,” Cavendish said, pointing to the company’s fully carried 20% interest in a development of more than 70 million barrels.
In Tuesday's note, Cavendish noted that Jersey ended 2025 with £11mln of cash and no debt, and it is due a further US$20mln in cash payments on FDP approval under the farm-out terms agreed with NEO NEXT+ and Serica Energy.
Cavendish highlighted that work continues on the Buchan Environmental Impact Assessment addendum, incorporating updated Scope 3 emissions guidance and the socio-economic benefits of the development.
Value engineering work is also being carried out, particularly around drilling and subsea infrastructure, aimed at optimising the project’s capital expenditure programme.
The broker noted that JOG is also assessing potential UK producing asset acquisitions, which could bring cash flow into the business and accelerate the value of more than US$100 million of existing UK tax allowances.
Cavendish said both NEO NEXT+ and Serica have expanded their North Sea portfolios through producing asset acquisitions, reinforcing their commitment to the basin.
“Buchan remains key to both companies’ long-term growth,” the broker said, adding that the project is important in offsetting natural production declines.