Jersey Oil and Gas boasts strong cash position as it advances Greater Buchan project closer towards

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Jersey Oil and Gas PLC (LON:JOG) highlighted a strong cash position and significant progress towards the development of the Greater Buchan Area (GBA) project as it reported on the first half of 2020.

The North Sea oil junior told investors it had GBP8.9mln of cash at the end of June, some GBP1mln above budget thanks to disciplined cost management.

At the same time, it noted that a preferred development concept has now been selected for GBA.

“The Greater Buchan Area is a multi-faceted project and it is exciting to see the results of the hard work of our project team now coming together,” said Andrew Benitz, Jersey chief executive.

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“Work is ongoing to finalise the development plan of our core project, with optimisation work on production phasing and on decisions regarding area collaboration, both for production volumes and power solutions.”

A production facility is planned at the Buchan location, with a proposed platform designed to accommodate fluids from neighbouring field developments via subsea tie-backs, with export executed via subsea pipeline to existing neighbouring infrastructure.

On a corporate level, GBA was bolstered with the acquisition of an additional 70% interest and operatorship in Licence P2170 before, in September, the company was awarded 100% working interest in acreage adjoining the GBA development acreage. This area is host to the J2 oil discovery.

Jersey highlighted that it is focussed on the finalisation of a development plan for GBA, and it is working on a comprehensive update to what it says is exciting near field exploration potential in the area.

It is planning to launch a process, in the first quarter of 2021, to secure a funding and/or farm-out of the GBA.

Stockbroker WH Ireland, in a brief note, commented: “We believe that today’s news is price material and that it sets the scene for a near-term catalyst rich outlook for the company.”

In early deals, Jersey shares gained 11.17% to trade at 113.95p.

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