As the world implements measures to tackle the ongoing outbreak, we acknowledge there is growing uncertainty around economic growth and underlying business conditions
Jersey Oil & Gas (AIM:JOG), an independent upstream oil and gas company focused on the UK Continental Shelf (“UKCS”) region of the North Sea, provides an update on its current business, in light of the outbreak of the Covid-19 virus and its effect on the global market.
As the world implements measures to tackle the ongoing outbreak, we acknowledge there is growing uncertainty around economic growth and underlying business conditions.
Jersey Oil and Gas remains fully funded to deliver the concept select work we are progressing on our Greater Buchan Area (“GBA”) development. We benefit from having no debt and on current plans the company has sufficient working capital through to the end of 2021, prior to any proceeds from our planned sale of a part interest in our GBA project, the process for which is expected to be launched later this year. Cost control continues to be monitored closely by our Board. Our year end 2019 unaudited cash position was £12.3m. JOG’s core GBA asset base is estimated to hold more than 140 million barrels of oil equivalent (“mmboe”) of discovered and recoverable oil volumes and more than 230 mmboe of exploration upside net to JOG. With further area collaboration across the wider GBA, there is a potential to produce more than 200 mmboe of discovered oil and gas resources.
Therefore, while it would be inappropriate to describe the situation as ‘business as usual’, we continue to work on the various workstreams required to achieve our stated goals and create long term shareholder value, including advancing concept select for the GBA development which remains on track for delivery this summer. Given the nature of our current workstreams these can mostly be completed remotely by our team and contractors and therefore we have set up business continuity measures to enable our team to work from home to ensure that the safety of those in our employ remains a top priority.
Source: Company Press Release