- Second farm-out of Buchan project
- Net cash to more than double next year
- Fully carried to first oil
- NAV estimates three times current share price
North Sea-focused upstream oil and gas company Jersey Oil & Gas (JOG:233p) has announced a second farm-out of its Greater Buchan Area (GBA) project. It’s a cracking deal for shareholders.
Having handed over operatorship in the project to its new partner, NEO Energy, in April this year, Jersey has agreed terms with Serica Energy (SQZ) to divest a further 30 per cent working interest. Serica is a cash rich UK-listed exploration and production company that generated free cash flow of £107mn in the first half of 2023, and one that holds 130mn barrels of oil equivalent (boe) of 2P reserves. The transaction is on identical pro-rata terms to the 50 per cent farm-out to NEO and means that Jersey retains a 20 per cent fully carried interest in the redevelopment project to first oil.