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Jersey Oil & Gas gets cash boost as Serica deal completes

Published 26/02/2024, 07:52
Updated 26/02/2024, 08:10
© Reuters.  Jersey Oil & Gas gets cash boost as Serica deal completes

Proactive Investors - Jersey Oil and Gas PLC (LON:JOG) today confirmed the completion of its farm-out transaction with Serica (LON:SQZ) Energy, resulting in the transfer of a 30% interest in the GBA project.

Serica has now paid a further $7.5 million upon completion, on top of the initial deal proceeds. Some $18 million of a possible $38 million in proceeds have so far been received by Jersey, with the remainder tied to future project milestones.

Jersey retains 20% of GBA, and its remaining share of project costs will now be “fully carried” by Serica as the project is advanced through development into production.

First production is anticipated by the fourth quarter of 2026.

GBA comprises the Buchan field, the J2 and Verbier discoveries along with other potential expansion project areas.

Serica chief executive Mitch Flegg, in a separate statement, commented: “We are pleased to have completed this transaction which creates the possibility of adding a third production hub to Serica's North Sea portfolio.

“As a potential domestic source of oil and gas with a low level of production emissions, a provider of quality jobs for UK workers and a generator of much needed future tax revenues, Buchan is the sort of project the UK needs as part of the energy transition."

Read more on Proactive Investors UK

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