Jersey Oil & Gas Plc (LON:JOG) chief executive Andrew Benitz told investors that the company is in a strong position to pursue its production-focused acquisition strategy, regardless of the outcome of StatOil’s exploration efforts at Verbier.
The AIM-quoted firm, in its interim results, highlighted that its cash position will stand at around £1.8mln once Statoil completes sidetrack drilling at the Verbier project, where the Norwegian group is looking to salvage value in an unsuccessful exploration well.
It was revealed earlier this month that Verbier’s primary target contained water rather than oil but Statoil subsequently decided to extend the well via sidetrack to test separate potential in an updip target.
That programme got underway on September 17 and it is expected to run for 25-35 days.
A success would provide fresh catalysts in the current portfolio, nonetheless, the company has repeated that its core objective is to acquire stakes in producing North Sea operations and it highlighted that as crude oil prices hold above US$50 per barrel there is “increased clarity” for this strategy.
Benitz said: “Following the drilling of the 20/05b-13z sidetrack well, the Company's cash position will be approximately £1.8m, leaving JOG in a strong position to continue to pursue its production focused acquisition strategy.
“We are pleased to be able to expose our shareholders to terrific exploration opportunities and I would like to thank our shareholders for their ongoing support.
“JOG has a strong vision for growth across the North Sea and with this support, we can achieve our stated objectives."
In terms of its financial results, the pre-revenue group reported a loss of £630,000.