TIDMJOG
RNS Number : 3755M
Jersey Oil and Gas PLC
14 September 2023
14 September 202 3
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Interim Results for the Six Month Period Ended 30 June 2023
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and
gas company focused on the UK Continental Shelf region of the North
Sea, is pleased to announce its unaudited Interim Results for the
six month period ended 30 June 2023.
Highlights
-- Transaction with NEO Energy ("NEO") completed for the
farm-out of a 50% interest in the Greater Buchan Area ("GBA")
licences in exchange for certain cash payments, funding through to
Field Development Plan ("FDP") approval and a 12.5% development
expenditure carry to first oil for the 50% interest retained by the
Company
-- Redeployment of a Floating, Production, Storage and
Offloading ("FPSO") vessel selected as the preferred GBA
development solution - negotiation of fully termed agreement for
acquisition of a high-quality vessel advancing
-- Approval secured from the North Sea Transition Authority
("NSTA") for the extension of the Second Term durations of the GBA
licences, thereby providing the time required to prepare the
necessary Field Development Plans ("FDP")
-- Transfer of operatorship to NEO formally completed in July
2023, with the project team now mobilised for commencement of Front
End Engineering and Design phase of activities
-- Preparation underway of the Environmental Statement for the
Buchan field redevelopment programme that is planned for submission
later this year - engagement ongoing with the statutory
consultees
-- Key focus remains on creating additional value through
securing a further GBA farm-out in order to ultimately provide the
Company with a fully carried 20-25% interest in the Buchan
redevelopment - engagement ongoing with potential
counterparties
-- Cash position of approximately GBP5.6 million, with no debt,
as at 30 June 2023. Further cash receipts due on satisfying Buchan
re-development milestones - $9.4 million on execution of the FPSO
acquisition agreement and $12.5 million on Buchan FDP approval
Andrew Benitz, CEO of Jersey Oil & Gas, commented :
"The first half of the year has been a pivotal period in the
history of the Company. With the farm-out to NEO Energy completed,
the GBA development solution locked down and the licences covering
the area extended, we now have a clear pathway to monetising the
resource base we have built up over recent years.
We are encouraged by the collaborative progress being made by
NEO and look forward to finalising the acquisition agreements for
the FPSO, creating additional value through securing further
farm-outs and moving onwards with the various workstreams required
to get to Field Development Plan approval next year."
Enquiries :
Jersey Oil and Gas Andrew Benitz C/o Camarco: 020 3757
plc 4980
Strand Hanson Limited James Harris Tel: 020 7409 3494
Matthew Chandler
James Bellman
Zeus Capital Limited Simon Johnson Tel: 020 3829 5000
Cavendish Capital Christopher Raggett Tel: 020 7220 0500
Markets Limited Tim Redfern
Camarco Billy Clegg Tel: 020 3757 4980
Rebecca Waterworth
- Ends -
Notes to Editors :
Jersey Oil & Gas ("JOG") is a UK E&P company focused on
building an upstream oil and gas business in the North Sea. The
Company holds a 50% interest in each of licences P2498 (Blocks
20/5a, 20/5e and 21/1a) and P2170 (Blocks 20/5b and 21/1d) located
in the UK Central North Sea and referred to as the "Greater Buchan
Area" ("GBA"). Licence P2498 contains the Buchan oil field and J2
oil discovery and licence P2170 contains the Verbier oil
discovery.
The GBA licences are operated by NEO Energy ("NEO"), with the
company holding a 50% working interest. NEO is a major UK North Sea
operator producing approximately 90,000 barrels of oil equivalent
per day and is backed by HitecVision, a leading private equity
investor focused on Europe's offshore energy industry with US$8
billion of assets under management
JOG is focused on delivering shareholder value and growth
through creative deal-making, operational success and licensing
rounds. Its management is convinced that opportunity exists within
the UK North Sea to deliver on this strategy and the Company has a
solid track-record of tangible success.
Forward-Looking Statements
This announcement may contain certain forward-looking statements
that are subject to the usual risk factors and uncertainties
associated with an oil and gas business. Whilst the Company
believes the expectations reflected herein to be reasonable in
light of the information available to it at this time, the actual
outcome may be materially different owing to factors beyond the
Company's control or otherwise within the Company's control but
where, for example, the Company decides on a change of plan or
strategy.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019.
CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S REPORT
Greater Buchan Area Farm-out success
The first half of 2023 was a pivotal period in the Company's
history with April's announcement of the successful farm-out of an
interest in our Greater Buchan Area ("GBA") development to NEO
Energy ("NEO"). The deal, which completed in June, saw NEO acquire
a 50% working interest in, and operatorship of, both the licences
that cover the GBA, which include the project to redevelop the
Buchan oil field, the Verbier and J2 discoveries and several
exploration prospects. The transaction unlocks the route to
monetising total resources in excess of 100 million barrels of oil
equivalent.
The transaction delivers material value to JOG, including cash
milestone payments, funding through to Field Development Plan
("FDP") approval and a minimum 12.5% development expenditure carry
to first oil for the 50% interest retained by the Company (a 1.25
carry ratio). NEO is a major UK North Sea operator producing
approximately 90,000 barrels of oil equivalent per day and is owned
by HitecVision AS, a leading private equity investor focused on
Europe's offshore energy industry with approximately US$8 billion
of assets under management.
GBA Development Operational Update
With the introduction of NEO to the GBA, the partnership
undertook confirmatory studies to finalise selection of the
preferred development solution for the GBA; determining that
re-deployment of an "electrification ready" FPSO offers the lowest
cost development option and the one that results in the lowest
full-cycle carbon footprint out of all the potential options
evaluated. A Concept Select Report was submitted to the North Sea
Transition Authority ("NSTA") setting out the development solution
and its alignment with the NSTA's strategy to maximise the economic
recovery of reserves and assist with achieving the UK government's
net zero target. The NSTA subsequently issued a letter confirming
that it has no objections to the licensees preparing a Field
Development Plan ("FDP") in accordance with that described in the
Concept Select Report.
To facilitate preparation, submission and approval of the FDP
for the redevelopment of the Buchan field, the NSTA approved an 18
month extension to the Second Term of licence P2498 to 28 February
2025. Following FDP approval, the licence will move into the Third
Term, which covers the development and production phase of
activities for the life of the field. In addition, the Second Term
of the P2170 "Verbier" licence was extended by three years to 29
August 2026. This extension was requested in order to provide the
licensees with the time required to prepare an FDP for the Verbier
discovery, as part of a phased GBA development plan.
Following announcement of the farm-out transaction, NEO and JOG
have been working collaboratively to facilitate a smooth transfer
of operatorship of the GBA licences and the associated subsurface
and engineering work completed on the assets. The formal transfer
of operatorship to NEO was approved by the NSTA in July 2023. In
tandem, NEO has established the necessary project management team,
including JOG secondees, and recently finalised the plan and
contracting strategy to move the Buchan redevelopment into the
Front End Engineering and Design ("FEED") phase of activities. FEED
scopes of work are now being initiated with respect to well design,
subsea and gas export infrastructure, as well as FPSO
electrification, life extension and re-deployment. Liaison with
offshore wind developers continues, with the GBA development
offering the potential to be a component of the future Outer Moray
Firth offshore wind electrification plans that are currently being
considered as part of the Government's Innovation and Targeted Oil
and Gas ("INTOG") leasing round process. Preparation of the FDP is
underway, with submission to the NSTA targeted for the first half
of 2024 for subsequent approval later in the year. In addition,
environmental impact assessments are being undertaken and
consultation with the Offshore Petroleum Regulator for Environment
and Decommissioning ("OPRED") and statutory consultees is ongoing,
ahead of submission of an Environmental Statement, being a
precursor to FDP approval.
Business Development Progress
In line with the Company's strategy to ultimately retain a
20-25% fully carried interest in the Buchan redevelopment project,
JOG is engaged with industry parties who have expressed potential
interest in farming-in to the GBA licences for a non-operated
working interest. Whilst there can be no certainty of a successful
transaction(s), we are encouraged by this ongoing engagement that
is naturally facilitated by the progress the joint venture is
making on the Buchan redevelopment project. Completion of a further
farm-out(s) remains the Company's key priority.
Financial Review
JOG's cash position was approximately GBP5.6m as of 30 June 2023
(31 December 2022: GBP6.6m). Cash costs of GBP2.7m (including an
GBP0.2m increase in working capital) were partially offset by a
payment of GBP1.7m received on completion of the NEO
transaction.
JOG had no production revenue during the period and received
only a modest amount of interest on its cash deposits.
The underlying cash expenditure incurred in running the business
in the first half of 2023 was down 15% from the same period last
year at GBP1.8m (H1 2022: GBP2.1m). During the first 6 months of
the year there were also transaction costs associated with the
farm-out of GBP0.8m and a non-cash share based compensation charge
of GBP1.0m (2022: GBP0.3m). These business costs are partially
recognised as Administrative Expenses through the Profit and Loss
account, GBP2.9m (H1 2022: GBP1.2m) and partially capitalised on
the Balance Sheet as Intangible Asset Additions, GBP0.6m (H1 2022:
GBP1.2m). The reduced activity and personnel numbers in the first 6
months of this year has resulted in a lower proportion of overhead
being capitalised on the Balance Sheet and hence a larger
proportion has been expensed in the Profit and Loss account.
The loss for the period, before and after tax, was approximately
GBP2.9m (2022: GBP1.2m).
JOG is fully carried for its 50% share of the estimated US$25m
cost to take the Buchan field through to FDP approval and is
forecast to receive its next deferred cash payment of US$9.4m
associated with the NEO farm-out upon finalising the acquisition of
the FPSO.
Macro Outlook
Global oil and gas fundamentals remain strong. Demand continues
to grow, unsurprisingly given an energy hungry growing global
population and supply continues to be suppressed by under
investment. In the UK North Sea, the country's oil production is
roughly a quarter of its peak in 1999. Energy policy should
recognise the opportunity to attract global capital investment into
the UK North Sea where relatively low carbon developments are
available. Oil and gas imported from elsewhere inevitably has a
higher carbon footprint. When looked at holistically it is
estimated that energy spend in the UK North Sea could reach
GBP200bn this decade, providing a major and unique opportunity for
the UK economy. It is not logical to deter investment to the
detriment of national energy security and drive-up costs to
consumers with carbon intensive energy imports. Within this context
it is encouraging to see the GBA development moving forward, a
project that embodies the qualities of locally sourced energy from
a re-developed field, to be produced through the reuse of existing
infrastructure, with the lowest carbon emissions through the
planned integration and use of proximal wind power.
Summary and outlook
We are encouraged by the collaborative progress being made with
NEO on the Buchan field redevelopment programme, having
successfully closed out the development concept select phase of
activities and entered into the FEED phase. Finalising the
selection of the preferred development concept, in the form of
redeployment of an existing FPSO, was naturally a significant step
forward and work is progressing to close out the relevant
transaction agreements to acquire a high quality vessel. We remain
on track for submission to the NSTA of the FDP for the Buchan field
re-development programme in 2024 and the commencement of production
in 2026.
Alongside working closely with NEO to progress the various
technical and regulatory workstreams required to reach Buchan FDP
approval, we remain actively engaged with other potential GBA
farm-in partners in order to secure our ultimate objective of
retaining a 20-25% fully carried interest in the field
redevelopment.
As ever, we are grateful for the ongoing support from our
shareholders, who should take comfort that the GBA development is
being driven forward by a highly capable North Sea operator that
values the importance of a strong joint venture partnership.
Les Thomas Andrew Benitz
Non-Executive Chairman Chief Executive Officer
13 September 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2023
6 months 6 months Year to
to to
30/06/23 30/06/22 31/12/22
(unaudited) (unaudited) (audited)
Notes GBP GBP GBP
Administrative expenses 4 (2,941,550) (1,200,589) (3,185,103)
OPERATING LOSS (2,941,550) (1,200,589) (3,185,103)
Finance income 47,149 17,050 82,842
Finance expense (1,297) (2,839) (4,730)
LOSS BEFORE TAX (2,895,698) (1,186,377) (3,106,991)
Tax 5 - - -
LOSS FOR THE PERIOD (2,895,698) (1,186,377) (3,106,991)
TOTAL COMPREHENSIVE LOSS
FOR THE PERIOD (2,895,698) (1,186,377) (3,106,991)
============ ============ ==================
Total comprehensive loss
attributable to:
Owners of the parent (2,895,698) (1,186,377) (3,106,991)
============ ============ ==================
Loss per share expressed
in pence per share :
Basic 6 (8.89) (3.64) (9.54)
Diluted 6 (8.89) (3.64) (9.54)
============ ============ ==================
The above consolidated statement of comprehensive income should
be read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
30/06/23 30/06/22 31/12/22
(unaudited) (unaudited) (audited)
Notes GBP GBP GBP
NON-CURRENT ASSETS
Intangible assets - exploration
& development costs 7 23,304,939 22,752,129 24,372,882
Property, plant and equipment 8 3,294 24,633 10,203
Right-of-use assets 12 182,809 133,168 81,328
Deposits 2,692 31,112 31,112
------------- ------------- -------------
23,493,734 22,941,042 24,495,525
------------- ------------- -------------
CURRENT ASSETS
Trade and other receivables 9 456,199 346,631 167,060
Cash and cash equivalents 10 5,633,066 8,666,792 6,579,349
------------- ------------- -------------
6,089,265 9,013,423 6,746,409
------------- ------------- -------------
TOTAL ASSETS 29,582,999 31,954,465 31,241,934
============= ============= =============
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 11 2,573,395 2,573,395 2,573,395
Share premium account 110,309,524 110,309,524 110,309,524
Share options reserve 3,431,457 1,708,075 2,566,343
Accumulated losses (87,347,793) (82,738,107) (84,600,273)
Reorganisation reserve (382,543) (382,543) (382,543)
------------- ------------- -------------
TOTAL EQUITY 28,584,040 31,470,344 30,466,446
------------- ------------- -------------
NON-CURRENT LIABILITIES
Lease liabilities 12 99,092 18,830 -
------------- ------------- -------------
99,092 18,830 -
------------- ------------- -------------
CURRENT LIABILITIES
Trade and other payables 13 845,532 334,198 688,796
Lease liabilities 54,335 131,093 86,692
------------- ------------- -------------
899,867 465,291 775,488
------------- ------------- -------------
TOTAL LIABILITIES 998,959 484,121 775,488
------------- ------------- -------------
TOTAL EQUITY AND LIABILITIES 29,582,999 31,954,465 31,241,934
============= ============= =============
The above consolidated statement of financial position should be
read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2023
Called Share Share Re-
up share premium options Accumulated organisation Total
capital account reserve Losses reserve equity
GBP GBP GBP GBP GBP GBP
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
At 1 January
2022 2,573,395 110,309,524 1,397,287 (81,551,730) (382,543) 32,345,933
Loss for the
period
and total
comprehensive
income - - - (1,186,377) - (1,186,377)
Share based
payments - - - 310,788 - - 310,788
At 30 June 2022 2,573,395 110,309,524 1,708,075 (82,738,107) (382,543) 31,470,344
============= ============= ============= ============== ============== =============
At 1 January
2023 2,573,395 110,309,524 2,566,343 (84,600,273) (382,543) 30,466,446
Loss for the
period
and total
comprehensive
income - - - (2,895,698) - (2,895,698)
Lapsed share
options - - (148,178) 148,178 -
Share based
payments - - - 1,013,292 - - 1,013,292
------------- ------------- ------------- -------------- -------------- -------------
At 30 June 2023 2,573,395 110,309,524 3,431,457 (87,347,793) (382,543) 28,584,040
============= ============= ============= ============== ============== =============
The following describes the nature and purpose of each reserve
within owners' equity:
Reserve Description and purpose
Called up share capital Represents the nominal value of shares
issued
Share premium account Amount subscribed for share capital in
excess of nominal value
Share options reserve Represents the accumulated balance of
share-based payment charges recognised in respect of share options
granted by the Company less transfers to retained deficit in
respect of options exercised or cancelled/lapsed
Accumulated losses Cumulative losses recognised in the
Consolidated Statement of Comprehensive Income
Reorganisation reserve Amounts resulting from the restructuring
of the Group
The above consolidated statement of changes in equity should be
read in conjunction with the accompanying notes
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2023
6 months 6 months Year
to to to
30/06/23 30/06/22 31/12/22
(unaudited) (unaudited) (audited)
Notes GBP GBP GBP
CASH FLOWS FROM OPERATING ACTIVITIES
Cash used in operations 14 (2,041,225) (3,085,544) (3,319,445)
Net interest received 47,149 17,050 82,842
Net interest paid (1,297) (2,839) (4,730)
--------------- ------------
Net cash used in operating activities (1,995,373) (3,071,333) (3,241,333)
--------------- --------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds received from farm-out
transaction 7 1,684,990 - -
Purchase of intangible assets 7 (549,314) (1,237,976) (3,092,186)
Net cash generated from/(used
in) investing activities 1,135,676 (1,237,976) (3,092,186)
--------------- --------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal elements of lease payments (86,586) (62,289) (125,520)
Net cash used in financing activities (86,586) (62,289) (125,520)
---------------
DECREASE IN CASH AND CASH EQUIVALENTS (946,283) (4,371,596) (6,459,039)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 6,579,349 13,038,388 13,038,388
--------------- --------------- ------------
CASH AND CASH EQUIVALENTS AT OF PERIOD 10 5,633,066 8,666,792 6,579,349
=============== =============== ============
The above consolidated statement of cash flows should be read in
conjunction with the accompanying notes
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 JUNE 2023
1. GENERAL INFORMATION
Jersey Oil and Gas plc (the "Company") and its subsidiaries
(together, the "Group") are involved in the upstream oil and gas
business in the UK.
The Company is a public limited company incorporated and
domiciled in England & Wales and quoted on AIM, a market
operated by London Stock Exchange plc. The address of its
registered office is 10 The Triangle, ng2 Business Park,
Nottingham, NG2 1AE.
The reporting period of the Group's condensed consolidated
interim financial statements is the six month period from 1 January
2023 to 30 June 2023 and these were authorised for issue in
accordance with a resolution of the Board of Directors on 12
September 2023.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The interim condensed consolidated financial statements for the
six months ended 30 June 2023 were prepared in accordance with
UK-adopted International Accounting Standard 34 "Interim Financial
Reporting" and in conformity with the requirements of the Companies
Act 2006 (the "Companies Act").
These unaudited interim consolidated financial statements of the
Group have been prepared following the same accounting policies and
methods of computation as the consolidated financial statements for
the year ended 31 December 2022. These unaudited interim
consolidated financial statements do not include all the
information and footnotes required by generally accepted accounting
principles for annual financial statements and therefore should be
read in conjunction with the consolidated financial statements and
the notes thereto in the Company's annual report for the year ended
31 December 2022.
The financial information contained in this announcement does
not constitute statutory financial statements within the meaning of
section 434 of the Companies Act 2006.
Consolidated statutory accounts for the year ended 31 December
2022, on which the auditors gave an unqualified audit report, have
been filed with the registrar of Companies.
The Group's financial statements have been prepared on a
historical cost basis. The condensed consolidated interim financial
statements are presented in Sterling, which is also the Group's
functional currency.
Going Concern
The Group has sufficient resources to meet its liabilities as
they fall due for a period of at least 12 months after the date of
issue of these condensed consolidated interim financial statements.
The Company's current cash reserves are therefore expected to more
than exceed its estimated cash outflows in all reasonable scenarios
for at least 12 months following the date of issue of these
condensed consolidated interim financial statements. Even in an
extreme scenario where the GBA development did not progress for any
unforeseen reason and the future farm-out instalment payments were
not realised the Group has the flexibility within its cost
structure to amend its expenditure profile and continue in business
beyond the next 12 months solely from utilisation of its existing
cash resources. The directors have also considered the risk
associated with contractual arrangements associated with
progression of the GBA development and are satisfied that the Group
is not exposed to any contractual commitments which could impact on
the Group's going concern status over the next 12 months. Based on
these circumstances, the directors have considered it appropriate
to adopt the going concern basis of accounting in preparing the
condensed consolidated interim financial statements.
Accounting policies
The accounting policies adopted in the preparation of the
condensed consolidated interim financial statements are consistent
with those followed in the preparation of the Group's annual
financial statements for the year ended 31 December 2022, except
for the following amendments which apply for the first time in
2023. However, not all are expected to impact the Group as they are
either not relevant to the Group's activities or require accounting
which is consistent with the Group's current accounting
policies.
The following new standards and amendments are effective for the
period beginning 1 January 2023:
-- IFRS 17 Insurance Contracts;
-- Disclosure of Accounting Policies (Amendments to IAS 1
Presentation of Financial Statements and IFRS Practice Statement
2);
-- Definition of Accounting Estimates (Amendments to IAS 8
Accounting policies, Changes in Accounting Estimates and
Errors);
-- Deferred Tax related to Assets and Liabilities arising from a
Single Transaction (Amendments to IAS 12 Income Taxes); and
-- International Tax Reform - Pillar Two Model Rules (Amendment to IAS 12 Income Taxes)
The impact of seasonality or cyclicality on operations is not
considered significant on the condensed consolidated interim
financial statements.
Accounting policies (cont.)
The following new standards and amendments are effective for the
period beginning 1 January 2023:
* IFRS 17 Insurance Contracts;
* Disclosure of Accounting Policies (Amendments to IAS
1 Presentation of Financial Statements and IFRS
Practice Statement 2);
* Definition of Accounting Estimates (Amendments to IAS
8 Accounting policies, Changes in Accounting
Estimates and Errors);
* Deferred Tax related to Assets and Liabilities
arising from a Single Transaction (Amendments to IAS
12 Income Taxes); and
* International Tax Reform - Pillar Two Model Rules
(Amendment to IAS 12 Income Taxes)
The impact of seasonality or cyclicality on operations is not considered
significant on the interim consolidated financial statements.
3. SEGMENTAL REPORTING
Operating segments are reported in a manner consistent with the
internal reporting provided to the Board of Directors.
The Board considers that the Group operates in a single segment,
that of oil and gas exploration, appraisal, development, and
production, in a single geographical location, the North Sea of the
United Kingdom.
The Board is the Group's chief operating decision maker within
the meaning of IFRS 8 "Operating Segments".
During the period to 30 June 2023 and during the year ended 31
December 2022 the Group had no revenue.
4. ADMINISTRATIVE COSTS
The following significant costs are included:
30/06/23 30/06/22
(unaudited) (unaudited)
GBP GBP
Third Party Transaction Fees 497,164 -
Transaction Bonuses 268,496 -
Non Cash Share Based Payments 1,103,292 310,788
The Non Cash Share Based Payments increased in H1 2023 mainly as
a result of the grant of additional Share Options in April 2023 and
accelerated vesting of Share Options issued in November 2021
following the Greater Buchan Area farm-out.
5. TAX
Jersey Oil and Gas plc is a trading company but no liability to
UK corporation tax arose on its ordinary activities for the period
ended 30 June 2023 due to trading losses. As at 31 December 2022,
the Group held tax losses of approximately GBP62m (2021:
GBP57m).
6. EARNINGS/(LOSS) PER SHARE
Basic loss per share is calculated by dividing the losses
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
Diluted loss per share is calculated using the weighted average
number of shares adjusted to assume the conversion of all dilutive
potential ordinary shares.
There is no difference between dilutive and basic loss per share
due to there being a loss recorded in the period.
Losses Weighted
attributable average
to ordinary number Per share
shareholders of shares amount
GBP Pence
Period ended 30 June
2023
Basic and Diluted EPS
Loss attributable to ordinary
shareholders (2,895,698) 32,554,293 (8.89)
============== =========== ==========
7. INTANGIBLE ASSETS
Exploration
Costs
GBP
COST
At 1 January 2023 24,548,122
Additions 617,047
Disposals (1,684,989)
At 30 June 2023 23,480,180
============
ACCUMULATED AMORTISATION
At 1 January 2023 175,241
At 30 June 2023 175,241
============
NET BOOK VALUE at 30
June 2023 23,304,939
============
Additions represent the work capitalised on the GBA assets.
In June 2023, Jersey Oil and Gas Plc completed a farm-out
transaction with NEO Energy ("NEO"). The parties each now hold a
50% interest in the licences that comprise the Greater Buchan Area
("GBA"), being P2498 ("Buchan") and P2170 ("Verbier"), with NEO
having become the operator as part of the transaction.
In exchange for entering into the agreements to divest a 50%
working interest and operatorship in the GBA licences to NEO, the
Company received GBP1.685m on completion and:
-- a full carry for JOG's 50% share of the estimated US$25m cost
to take the Buchan field through to Field Development Plan ("FDP")
approval;
-- a US$9.4m cash payment upon finalisation of the GBA
development solution - namely execution of the fully termed FPSO
acquisition agreement;
-- a US$12.5m cash payment on approval of the Buchan FDP by the
North Sea Transition Authority ("NSTA");
-- a 12.5% carry of the Buchan field development costs included
in the FDP approved by the NSTA; equivalent to a 1.25 carry ratio;
and
-- a US$5m cash payment on each FDP approval by the NSTA in
respect of the J2 and Verbier oil discoveries
The completion payment of GBP1.685m has been recorded as a
disposal reducing the intangible carrying value of the GBA. No
value for the development carries or the future contingent payments
is currently being recognised on the consolidated statement of
financial position.
Based on the Company's assessment, as at 30 June 2023, there are
not deemed to be any indicators that the licences are not
commercial and the net carrying value of GBP23,304,939 continues to
be supported by ongoing development work on the licence areas, with
no impairments considered necessary.
8. PROPERTY, PLANT AND EQUIPMENT
Computer
and office
equipment
GBP
COST
At 1 January 2023 228,447
Additions -
At 30 June 2023 228,447
============
ACCUMULATED AMORTISATION, DEPLETION AND
DEPRECIATION
At 1 January 2023 218,244
Charge for period 6,909
At 30 June 2023 225,153
==========
NET BOOK VALUE at 30 June
2023 3,294
==========
This represents the capitalised cost of computer equipment and
fixtures.
9. TRADE AND OTHER RECEIVABLES
30/06/23 30/06/22 31/12/22
(unaudited) (unaudited) (audited)
GBP GBP GBP
Other receivables 30 30 30
Prepayments and accrued income 378,468 268,323 97,328
Deposits - - -
Value added tax 77,701 78,278 69,702
456,199 346,631 167,060
============ ============ ==========
As at 30 June 2023, there were no trade receivables past due nor
impaired. There are immaterial expected credit losses recognised on
these balances.
10. CASH AND CASH EQUIVALENTS
The amounts disclosed in the consolidated statement of cash
flows in respect of cash and cash equivalents are in respect of
these consolidated statement of financial position amounts:
30/06/23 30/06/22 31/12/22
(unaudited) (unaudited) (audited)
GBP GBP GBP
Cash and cash equivalents 5,633,066 8,666,792 6,579,349
------------ ------------
5,633,066 8,666,792 6,579,349
============ ============ ==========
11. CALLED UP SHARE CAPITAL
30/06/23 30/06/22 31/12/22
(unaudited) (unaudited) (audited)
GBP GBP GBP
Issued and fully paid:
Number: 32,554,293 (2022:
32,554,293)
Ordinary class 2,573,395 2,573,395 2,573,395
------------ ------------
2,573,395 2,573,395 2,573,395
============ ============ ==========
12. LEASES
Amounts Recognised in the Statement of financial position
30/06/23 30/06/22 31/12/22
(unaudited) (unaudited) (audited)
Right-of-use Assets GBP GBP GBP
Buildings 182,809 133,168 81,328
182,809 133,168 81,328
============ ============ ==========
30/06/23 30/06/22 31/12/22
Lease liabilities (unaudited) (unaudited) (audited)
GBP GBP GBP
Current 54,335 131,094 86,692
Non-Current 99,092 18,829 -
------------ ------------ ----------
153,427 149,923 86,692
============ ============ ==========
The liabilities were measured at the present value of the
remaining lease payments, discounted using the lessee's incremental
borrowing rate as of 1 January 2019. The weighted average lessee's
incremental borrowing rate applied to the lease liabilities on 1
January 2019 was 3%. The borrowing rate applied for 2023 remained
at 3% and the leases relate to office space. A new lease agreement
was entered into in June 2023 for a total of 9 years with break
clauses after 3 and 6 years. Given the 3 year break clause and the
future plans for the business it was deemed appropriate to
recognise the liability relating to a 3 year period.
Amounts Recognised in the Statement of comprehensive income
30/06/23 30/06/22 31/12/22
(unaudited) (unaudited) (audited)
GBP GBP GBP
Depreciation charge of right-of-use
asset
Buildings 51,840 51,840 138,176
51,840 51,840 138,176
============ ============ ==========
30/06/23 30/06/22 31/12/22
(unaudited) (unaudited) (audited)
GBP GBP GBP
Interest expenses (included in finance
cost)
Buildings 1,297 2,831 5,820
1,297 2,831 5,820
============ ============ ==========
13. TRADE AND OTHER PAYABLES
30/06/23 30/06/22 31/12/22
(unaudited) (unaudited) (audited)
GBP GBP GBP
Trade payables 221,847 111,041 459,461
Accrued expenses 440,583 135,770 161,253
Taxation and Social Security 183,102 87,387 68,082
845,532 334,198 688,796
============ ============ ==========
14. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
RECONCILIATION OF LOSS BEFORE TAX TO CASH USED IN OPERATIONS
30/06/23 30/06/22 31/12/22
(unaudited) (unaudited) (audited)
GBP GBP GBP
Loss for the period before
tax (2,895,698) (1,186,377) (3,106,991)
Adjusted for:
Depreciation 6,909 15,444 29,873
Depreciation right-of-use
asset 51,840 51,840 103,680
Share based payments (net) 1,013,292 310,788 1,227,504
Finance costs 1,297 2,839 4,730
Finance income (47,149) (17,050) (82,842)
------------ ------------ ------------
(1,869,509) (822,516) (1,824,046)
(Increase)/decrease in trade
and other receivables (94,994) 6,482 186,054
Decrease in trade and other
payables (76,722) (2,269,509) (1,681,452)
------------ ------------ ------------
Cash used in operations (2,041,225) (3,085,544) (3,319,445)
============ ============ ============
15. POST BALANCE SHEET EVENTS
Following a competitive tender process, the Board of Directors
approved the appointment of BDO LLP as the Company's auditor for
the financial year ending 31 December 2023. PricewaterhouseCoopers
LLP ("PwC") formally resigned as auditor with effect from 6
September 2023.
16. AVAILABILITY OF THE INTERIM REPORT 2023
A copy of these results will be made available for inspection at
the Company's registered office during normal business hours on any
weekday. The Company's registered office is at 10 The Triangle, Ng2
Business Park, Nottingham, Nottinghamshire NG2 1AE. A copy can also
be downloaded from the Company's website at
www.jerseyoilandgas.com. Jersey Oil and Gas plc is registered in
England and Wales with registration number 7503957.
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END
IR DXLFFXKLEBBK
(END) Dow Jones Newswires
September 14, 2023 02:00 ET (06:00 GMT)
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