Jersey Oil & Gas Plc (LON:JOG) is well placed financially and strategically, according to stockbroker WH Ireland, in a note following Wednesday’s financial results statement.
“We believe Jersey is taking measures to grow corporately into the type of company capable of fully developing and operating one of the larger UK undeveloped oil projects and in doing so it is making a farm-out all the more attractive for third parties,” the broker said.
In a statement this morning, Jersey boss Andrew Benitz a transformational year for the North Sea firm.
The period saw the firm increase resource inventory to over 120mln barrels as it picked up the Buchan assets and consolidated the Verbier discovery in the North Sea.
The Greater Buchan project now comprises Buchan, Verbier, J2 and Glenn discoveries and development planning is currently taking place with an initiative of technical and commercial evaluation studies also underway, in which the company is working with neighbouring field operators to consider collaborative development in the area.
Additionally, the portfolio of assets retains significant upside potential with some 232mln barrels of prospective resources presently estimated.
The exploration company ended 2019 in a strong financial position with £12.3mln of cash and no debt. It is presently fully funded through to at least the end of 2021.
“The company is currently entirely focused on the timely delivery of concept selection for this major new area hub that has the potential to create significant value for stakeholders,” Andrew Benitz, Jersey chief executive said in the statement.