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Posts: 262
Opinion: No Opinion
Posted: July 22, 2019
RNS Number : 2406G
Jersey Oil and Gas PLC
22 July 2019
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
31st Supplementary Offshore (Buchan Area) Licensing Round Awards
Jersey Oil & Gas awarded significant acreage containing over
100 million barrels of discovered oil, including the Buchan oil field
Option Agreement with Equinor UK Limited ("Equinor")
Highlights:
· JOG awarded, subject to documentation, 100% working interests and operatorship of three blocks in the Oil & Gas Authority's ("OGA") 31st Supplementary Offshore Licensing Round
· Acreage awarded includes the Buchan oil field and the J2 oil discovery
· Acreage is contiguous with JOG's existing interest in Licence P2170 (Blocks 20/5b and 21/1d) that contains the Verbier discovery
· JOG's acreage interest in the Greater Buchan Area ("GBA"), including P2170, is estimated to contain more than 100 million barrels of oil equivalent ("mmboe") discovered mean recoverable resources plus in excess of 300 mmboe identified mean prospective resources
· Work will now commence on a Field Development Plan ("FDP") with, subject to funding, first oil targeted for 2024 - JOG fully funded to submit the FDP
· Equinor and JOG have agreed a 3 month option over a 50% equity interest in respect of Blocks 20/5d and 21/1a (the "Buchan Blocks")
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are delighted to announce this transformational event. Prior to these awards, JOG's net share of discovered resources in Verbier were estimated at 4.5 mmboe. Today's awards add an estimated 105 mmboe of discovered resources net to JOG, in addition to a material uplift in new prospective resources. This represents a highly significant value enhancing milestone for our shareholders comprising 100% equity interests and operatorship of key development ready assets with the potential to create a major new area hub within the Greater Buchan Area.
These awards are the kind of value creating opportunities available to nimble independent companies operating in the North Sea today and stem from an intensive two-year work effort behind the scenes by JOG to prepare today's winning applications. By way of low-risk accumulation of discovered resource volumes, this is by far the most significant event for JOG since its inception and we are excited to start work on this new project immediately.
We are also pleased to enter into an option agreement with Equinor, which serves to demonstrate JOG's efforts to successfully collaborate and continue to strengthen our working relationship with Equinor as Operator of Licence P2170."
Posts: 262
Opinion: No Opinion
Posted: November 9, 2017
RNS Number : 0860W
Jersey Oil and Gas PLC
09 November 2017
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.
Capitalised terms used in this announcement shall have the same meanings as the definitions set out in the Company's announcement of 20 October 2017 and in the Circular.
9 November 2017
Jersey Oil and Gas plc
("Jersey Oil and Gas" or the "Company")
Result of General Meeting
Result of Offer, Completion of Fundraising and Issue of Equity
Jersey Oil and Gas (AIM: JOG), an independent upstream oil and gas company ?focused on the UK Continental Shelf ("UKCS") region of the North Sea, announces that the resolutions proposed at its General Meeting held earlier today, as set out in the formal Notice of General Meeting dated 24 October 2017, were all duly approved by shareholders.
The Offer announced as part of the Fundraising on 20 October 2017 having now closed for acceptances, the Company is pleased to announce that valid acceptances were received from Qualifying Participants in respect of, in aggregate, 1,878,441 Offer Shares, representing approximately 93.92 per cent. of the Offer Maximum. Qualifying Participants that have made valid applications will therefore be allocated all of the Offer Shares that they applied for.
Accordingly, pursuant to the Placing and Offer announced on 20 October 2017 and further to the abovementioned passing of all resolutions at the Company's General Meeting held earlier today, the Company is issuing 10,000,000 new Ordinary Shares pursuant to the Placing and 1,878,441 new Ordinary Shares pursuant to the Offer at a price of 200 pence per share. The Company has therefore raised total gross proceeds from the Fundraising of approximately £23.76 million.
Mr Marcus Stanton, Non-Executive Chairman of Jersey Oil and Gas, has subscribed for a further 7,500 Ordinary Shares under the Offer in addition to his participation in the Placing as announced on 20 October 2017. Mr Stanton will therefore be issued, in aggregate, 15,000 new Ordinary Shares pursuant to the Fundraising and following the issue of these shares will be interested, in aggregate, in 39,192 Ordinary Shares representing approximately 0.18 per cent. of the Company's enlarged issued share capital.
The participation by Mr Stanton in the Offer is considered to be a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies. The Directors (other than Mr Stanton) consider, having consulted with Strand Hanson Limited, the Company's nominated adviser, that the terms of the participation by Mr Stanton in the Offer are fair and reasonable in so far as the Company's Shareholders are concerned.
Application has been made for admission of the Placing Shares and 1,878,441 Offer Shares to trading on the AIM market of the London Stock Exchange, which is expected to become effective and dealings commence at 8.00 a.m. on 10 November 2017 ("Admission"). Following Admission, the Company's enlarged share capital will comprise 21,829,227 Ordinary Shares, with voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore, the total number of Ordinary Shares in the Company with voting rights will be 21,829,227 Ordinary Shares and shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
Andrew Benitz, CEO of Jersey Oil and Gas Plc, commented:
"This has been an exceptional few months for Jersey Oil and Gas following the drilling of the Verbier oil discovery, which the operator, Statoil (U.K.) Limited ("Statoil"), initially estimates to contain gross recoverable resources of between 25 to 130MMboe. With today's successful completion of the Placing and Offer, we now have funding in place for the anticipated Verbier appraisal and Cortina exploration drilling programmes, the details of which will be decided upon and finalised with our partners, Statoil and CIECO V&C (UK) Limited, following full evaluation of the discovery well results alongside the existing 3D seismic data.
"The Board and I would like to welcome our new shareholders and acknowledge the valuable support of our existing shareholders, and we look forward to delivering further value as we continue to pursue our production focused acquisition strategy in the UKCS."
Posts: 262
Opinion: No Opinion
Posted: October 20, 2017
20 October 2017
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Placing to raise £20 million by way of an accelerated bookbuild
and
Proposed offer to raise up to £4 million ("Offer")
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company ?focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to announce its intention to undertake an equity placement of £20.0 million (the "Placing"). The Placing will be effected by way of an accelerated bookbuild, which will be launched immediately following this announcement at a minimum price of 200p.
Arden Partners plc ("Arden") and BMO Capital Markets Limited ("BMO") are acting as joint brokers and joint bookrunners in connection with the Placing.
The proceeds of the Placing will be used to fund the expected Verbier appraisal programme and Cortina exploration drilling, following the recent oil discovery in the Verbier side-track well, 20/05b-13Z, and strengthen the Company's balance sheet as it continues to pursue its production focused acquisition strategy in the UKCS.
In addition to the Placing, the Company intends to provide all Qualifying Participants with the opportunity to subscribe for new Ordinary Shares ("Offer Shares") at the Issue Price, to raise up to £4.0 million before expenses ("Offer").
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"Jersey Oil & Gas is in a unique position with an 18 per cent. interest in Licence P.2170 containing the Verbier oil discovery which Statoil, the operator, initially estimates has gross recoverable resources of between 25 and 130MMboe, with a minimum proven recoverable volume in the immediate vicinity of the wellbore of 25 MMboe.
Evaluation of the well results alongside the existing 3D seismic data is ongoing and today's placing ensures that we are able to fund our working interest in this highly attractive licence once the appraisal drilling programme is confirmed by the operator.
Alongside this we have a strong pipeline of asset opportunities and are encouraged by the active deal flow in the North Sea. The additional funds will allow us to maintain our balance sheet strength as we continue to pursue a production-led acquisition strategy within the UKCS."
Expected timetable:
2017
Announcement of the Placing and Bookbuild commences
20 October
Dispatch of the Circular, Application Form and Form of Proxy
24 October
Latest time and date for receipt of completed Forms of Proxy and receipt of electronic proxy appointments via the CREST system for the General Meeting
12.00 noon on 7 November
Latest time for receipt of applications under the Offer
12.00 noon on 8 November
General Meeting
12.00 noon on 9 November
Announcement of results of General Meeting and Offer
9 November
Admission and commencement of dealings in the New Ordinary Shares on AIM and CREST accounts expected to be credited for the New Ordinary Shares in uncertificated form
8.00 a.m. on 10 November
Each of the times and dates above refer to London time and are subject to change by the Company and/or the Joint Brokers. Any such change will be notified to Shareholders by an announcement on a Regulatory Information Service. The Circular will contain further details of the expected timetable for the Placing, the Offer, the General Meeting and Admission.
ADDITIONAL INFORMATION
The Placing:
The Company is proposing to raise £20.0 million (before expenses) pursuant to the Placing. The Placing has been arranged by Arden and BMO, acting as joint bookrunners and joint brokers (together, the "Joint Brokers"). The Placing will be conducted by the Joint Brokers on behalf of the Company in accordance with the terms and conditions set out in the Appendix to this Announcement. The Placing is being conducted through an accelerated bookbuilding process (the "Bookbuild") which will commence immediately following this Announcement.
The Bookbuild will determine final demand for and participation in the Placing. The Bookbuild is expected to close not later than 5.30 p.m. (London) today, but may be closed at such earlier or later time as the Joint Brokers, in their absolute discretion (following consultation with the Company), determine. The number of Placing Shares, the Issue Price and the making of allocations will be agreed between the Company and the Joint Brokers and will be confirmed orally or by email by Arden following the closure of the Bookbuild. A further announcement will be made following the completion of the Bookbuild and pricing of the Placing (the "Bookbuild Announcement").
Completion of the Placing is subject, inter alia, to Shareholder approval of the Resolutions to authorise the issue of the Placing Shares, which will be sought at a General Meeting of the Company to be held at 12.00 noon on 9 November 2017.
A Circular containing further details of the Placing including a notice convening the General Meeting is expected to be despatched to Shareholders on 24 October 2017 and will thereafter be available on the Company's website at www.jerseyoilandgas.com.
The Appendix (which forms a part of this Announcement) contains the detailed terms and conditions of the Placing.
The Offer
It is proposed that the Offer will comprise an offer to Qualifying Participants of Offer Shares with the aggregate consideration to be received by the Company limited to £4.0 million, being the Offer Maximum. Qualifying Participants can apply for as many Offer Shares as they wish. However, the Directors reserve the right to exercise their absolute discretion (with the agreement of the Joint Brokers) in the allocation of successful applications, including, without limitation, to ensure no Offer Shares are issued so as to exceed the Offer Maximum.
It is proposed that the Offer will only be open to Qualifying Participants and, save as set out in the preceding paragraph, there is no maximum or minimum subscription per applicant. No Qualifying Participant may subscribe for Offer Shares in excess of the Offer Maximum. Multiple applications may be submitted. Qualifying Participants who are joint Shareholders may only apply for Offer Shares as joint applicants.
The Offer is not being underwritten. The Application Form and accompanying procedure for application will set out, in detail, how Qualifying Participants may participate under the Offer.
In order to apply for Offer Shares, Qualifying Participants should complete the Application Form in accordance with the instructions set out in the Circular to be published in due course. A further announcement setting out timings in respect of the Offer will be made in due course.
Background to and reasons for the Placing
The Company has worked hard over the last few years to deliver value to Shareholders. The Company has achieved two significant farm-outs of its assets, the most significant being the farm-out to Statoil in which Statoil acquired a 70 per cent working interest in UK Seaward Licence P2170, and the Company retained an 18 per cent. working interest. Statoil provided a $25 million carried working interest on the first P.2170 Licence well. The Company is now well positioned following the recent success in the Verbier sidetrack well, 20/05b-13Z, where the Company announced an oil discovery on 9 October 2017.
Preliminary analysis indicates that the Verbier sidetrack well has proven hydrocarbon accumulation in good quality sands, up-dip of the water bearing sands encountered in the initial well. Evaluation of the sidetrack well results, together with the existing 3D seismic data, is ongoing, but the initial Statoil estimates of gross recoverable resources associated with the discovery are between 25 and 130 million barrels of oil equivalent, with a minimum proven recoverable volume of 25 million barrels of oil equivalent in the immediate vicinity of the wellbore. The Company's management estimates that, in the upside case of 130 MMboe, lifecycle cost per barrel would be approximately £22/boe (utilising current market rates) for Verbier.
Current management estimates for gross recoverable resources attributable to JOG across all of the P.2170 Licence prospects (Verbier, Cortina and Meribel) range from 70 MMboe in the low case to 273 MMboe in the upside case, which correspond to management estimates for net asset value to JOG of approximately £83.7 million in the low case (which assumes a subsea tie-back operation) to £400.5 million in the upside case (on a standalone production platform basis).
In addition to confirming the presence of oil in the Verbier prospect, this discovery provides valuable information to help better understand the prospectivity of the P.2170 Licence area, which includes the Cortina prospect and the Meribel lead.
The Company has also continued with its other focus of seeking to acquire value-enhancing North Sea production assets. The Directors believe that if the Company has a stronger balance sheet, it will provide vendors with greater confidence in the Company's ability to execute acquisitions. The Company will also benefit from having the necessary resources to undertake its own studies and continuing to fund the ongoing evaluation of numerous North Sea oil production and development prospects. The Company hopes to be able to transact in the near future on a strong pipeline of asset opportunities which the Company is currently evaluating.
The Directors believe therefore that it is an appropriate time to improve the financial position of the Company since the Directors expect that there will be further financing requirements for the Company relating to its working interest in the P.2170 Licence, as Statoil confirms any proposed work programme.
The Company's team has excellent technical and commercial knowledge of the UKCS, with decades of management experience, and to date has reviewed and evaluated in excess of 50 production field interests in the UKCS. The Company has a number of live production asset evaluations underway, looking at assets with reserves ranging from 2 to 24 MMboe and production ranging from approximately 1,000 to 3,800 boe/d, with such assets utilising a mixture of subsea tie-backs, production platforms or FPSOs. In the majority of cases, the Company is seeking transactions where the asset vendor will retain any abandonment liability obligations and all of the Company's current asset targets have upside potential from unswept pockets of oil or further development activities.
The North Sea is active with many asset sales processes in this well-known and prolific basin. The Directors believe that this means it is a very opportune time to pursue a production-led acquisition strategy within the UKCS.
Use of Proceeds
The Directors believe that in order to exploit the significant potential of the P.2170 licence area, the operator will suggest further appraisal and exploration wells to better define and determine the prospectivity and commerciality of the three key prospects: Verbier, Cortina and Meribel. The Company's carried working interests from both Statoil (U.K.) Limited and CIECO Exploration and Production (UK) Limited have now expired and as such the Company will need to fund its 18 per cent. share of any costs relating to the P.2170 licence.
The use of proceeds is therefore largely attributed to ensuring that the Company can fund its proportion of the costs of these expected appraisal and exploration wells as it continues to pursue opportunities for the acquisition of production assets in the UKCS. Based on the Company's current management estimates, which are subject to change once Statoil has formalised its forward plans, the Board estimates that costs attributable to the Company in relation to the Verbier discovery in the upside case outlined above will be up to approximately £0.5 million for technical studies and £11 million for the well appraisal programme. In addition, the Company's management estimates that its share of costs in relation to an exploration well on the Cortina prospect, if drilled, would be approximately £6 million. These figures are current management estimates, which include contingency and are likely to change, but form the basis for the Company's estimated fundraise target for operational costs of up to £20 million. It is currently envisaged that appraisal and definition activity in relation to Verbier will run through 2018, followed by execution of the development plan currently estimated to achieve first oil in approximately 2022.
The balance of the Placing proceeds not required for operational expenses will be used to provide the Company with general working capital and a stronger balance sheet to enhance any bids it chooses to make, which the Board believes will provide a greater degree of financial certainty to sellers of such assets of the Company's ability to fund any acquisitions.
A updated corporate presentation illustrating the information above can be found on the Company's website at www.jerseyoilandgas.com.
Director Placing
Certain Directors have indicated their interest in participating in the Placing. Their participation and their consequent interests in the Company's issued share capital will be described in a further announcement.
Principal risks and uncertainties
A description of the principal risks and uncertainties associated with the Group's business and how the Group seeks to manage them is included in the strategic report of the Company on pages 5 to 6 of the Group's Annual Report and Accounts for the year ended 31 December 2016. The Board is of the view that these principal risks and uncertainties are those which continue to be applicable to the Company at the date of this Announcement. The Directors' estimates on costs and timings of future operations are largely determined in conjunction with Statoil and CIECO and the eventual outturn could vary significantly from current forecasts and expectations.
Posts: 262
Opinion: No Opinion
Posted: October 9, 2017
Fantastic RNS, this morning.
RNS Number : 0060T
Jersey Oil and Gas PLC
09 October 2017
9 October 2017
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Oil Discovery at Verbier Sidetrack Well 20/05b-13Z
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to announce an oil discovery in the Verbier sidetrack well, 20/05b-13Z. The well has been drilled safely and within budget to the planned total depth of 3811m and a suite of log data has been acquired via Logging While Drilling ("LWD"), including pressure data.
Preliminary analysis indicates:
· The well has proven a hydrocarbon accumulation in good quality sands, up dip of the water bearing sands encountered in the initial well
· Evaluation of the well results, together with the existing 3D seismic data is ongoing
· Initial Operator estimates of gross recoverable resources associated with the Verbier discovery are between 25 and 130 million barrels of oil equivalent, with a minimum proven recoverable volume in the immediate vicinity of the wellbore of 25 million barrels of oil equivalent
In addition to confirming the presence of oil in the Verbier prospect, this discovery provides valuable information to help better understand the prospectivity of the licence area, which includes the Cortina prospect and the Meribel lead. JOG holds an 18% working interest in the licence.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are delighted by the positive outcome of the Verbier sidetrack. The well has achieved its objective by encountering good quality, hydrocarbon-bearing sands, up dip from the initial well with the results exceeding pre drill expectations for the sidetrack."
Jenny Morris, Vice President for Exploration in the UK of Statoil, commented:
"The results show that we made the right decision to sidetrack the well and this discovery proves that there could be significant remaining potential in this mature basin… we are convinced of the remaining, high-value potential on the UK continental shelf and the Verbier result certainly gives us the confidence and determination to continue our exploration efforts."