Proactive Investors - Jersey Oil and Gas PLC (LON:JOG) chief executive Andrew Benitz described “an instrumental year in securing the future success of the company” as the UK North Sea junior reported its financial results for the 12 months ended 31 December 2022.
It covers the financial period that preceded Jersey’s divestment of a 50% stake in the Greater Buchan Area (GBA) in a partnership deal with NEO Energy, which is due to completed before the end of next month.
Upon close, JOG will receive a substantial cash payment and more significantly will be supported by its new partner in the funding of the development of the GBA assets.
At the end of 2022, meanwhile, the pre-revenue explorer and field developer had some £6.6mln of cash.
The NEO deal will see JOG in a fully-funded position up to the approval of a field development plan (FDP) for GBA and it will also see a number of milestone payments as the project advances and matures.
With the anticipated first production targeted for 2026, the partnership will jointly decide the best course of development for future production from the GBA, the final selection scheduled for submission to the North Sea Transition Authority (NSTA) for approval in H1 2024.
"The GBA farm-out process involved extensive interactions with multiple counterparties during the year, culminating in the transaction that was announced in April of this year with NEO Energy,” chief executive Benitz said in a statement.
“With the route for execution of the development programme now firmly established, the company looks forward to unlocking the many value catalysts that mark the run up to approval of the project and beyond."
JOG reported a loss of £3.1mln for the financial year.