Jersey Oil & Gas (JOG:63p), a UK North Sea-focused upstream oil and gas company that owns an 18 per cent interest in the P2170 licence (Blocks 20/5b & 21/1d), Outer Moray Firth, is the laggard in my 2019 Bargain Share Portfolio, a reflection of last month’s disappointing results from the company’s appraisal drilling programme on its flagship Verbier discovery in Block 20/5b (‘Jersey’s drilling disappoints’, 3 April 2019). As a result the shares are trading on a massive discount to house broker Arden Partners’ risked net asset value (NAV) per share estimate of 233p (833p on an unrisked basis) using a long-term Brent crude price of $65 a barrel, or 10 per cent below the current market price.
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Simon Thompson
Taking stock and profits
Our small-cap stock picking expert highlights corporate governance issues at two investment companies that has sent him heading for the exit, and is taking profits on two other holdings, too
Simon Thompson