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Jersey Oil & Gas still has multi-bagger potential

Fiscal uncertainty towards the UK oil and gas industry is weighing on sentiment, but it could improve sooner than many people realise
May 13, 2024
  • Net cash equates to a third of market value
  • Annual cash burn materially reduced
  • First oil from Buchan expected in late 2026
  • 76 per cent discount to consensus risked NAV estimate

Annual results from North Sea-focused upstream oil and gas company Jersey Oil & Gas (JOG:146.5p) highlight the value being created for shareholders through the double farm-outs of its Greater Buchan Area (GBA) project even if the share price fails to reflect it.

In April 2023, Jersey handed over operatorship of the project to its new partner, NEO Energy, and subsequently divested a further 30 per cent working interest on identical terms with Serica Energy (SQZ). It means Jersey retains a 20 per cent fully carried interest in the redevelopment project to first oil.

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