UK-based oil and gas company Jersey Oil & Gas (JOG) is still on track to deliver the Greater Buchan Area development concept regardless of the coronavirus outbreak.
JOG said on Wednesday that, even though it “would be inappropriate to describe the situation as business as usual,” it was on course to achieve its goals and create long-term shareholder value, including advancing concept select for the Greater Buchan Area (GBA) development which remains on track for delivery this summer.
“Given the nature of our current workstreams these can mostly be completed remotely by our team and contractors and therefore we have set up business continuity measures to enable our team to work from home to ensure that the safety of those in our employ remains a top priority.
“As the world implements measures to tackle the ongoing outbreak, we acknowledge there is growing uncertainty around economic growth and underlying business conditions,” the company stated.
JOG added that it remained fully funded to deliver the concept select work on the GBA development. The company also benefits from having no debt and sufficient working capital through to the end of 2021, prior to any proceeds from its planned sale of a part interest in the GBA project. The sale process was expected to be launched later this year.
According to the company, JOG is continuing to monitor cost control. The company’s year-end 2019 unaudited cash position was £12.3 million ($14.7M).
JOG’s core GBA asset base is estimated to hold more than 140 mmboe of discovered and recoverable oil volumes and more than 230 mmboe of exploration upside net to JOG. With further area collaboration across the wider GBA, there is a potential to produce more than 200 mmboe of discovered oil and gas resources.
It is worth reminding that JOG recently established and will be leading the Greater Buchan Area joint integrated studies agreement between neighboring field operators.
The objective of the studies is to establish whether a collaborative development would lead to a reduction in development costs and an increase in value for all participants in a new production hub in the area, potentially including electrification in line with the OGA’s MER strategy for the UKCS and reducing CO2 emissions.
The fields, discoveries, and participants in the studies will be the Buchan, J2, and Glenn – operated by JOG, Verbier – operated by Equinor (pending JOG’s completion of the stake acquisition announced in January ) alongside its partners Jersey Petroleum and CIECO, Avalon – operated by Ping Petroleum alongside its partner Summit Exploration and Production, and Leverett – operated by Zennor.