4 September 2025

 

Jersey Oil and Gas plc

("Jersey Oil & Gas", "JOG" or the "Company")

 

Interim Results for the Six Month Period Ended 30 June 2025

 

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 2025. 

 

Highlights & Outlook

§ Significant engagement undertaken with the UK government and industry bodies concerning the regulatory and fiscal consultations that will impact the long-term direction of the UK North Sea oil and gas industry

§ Work underway to prepare the necessary addendum to the Buchan Horst ("Buchan") Environmental Impact Assessment resulting from the revised guidance issued by the Offshore Petroleum Regulator for the Environment and Decommissioning regarding the inclusion of Scope 3 emissions

§ Continued progress made with a number of pre-sanction technical and commercial workstreams, including subsurface modelling studies, the specification of the optimal drilling completion plan for the requisite production wells and the agreement of commercial terms for the utilisation of gas export infrastructure

§ While the agreement to acquire the "Western Isles" floating production, storage and offloading ("FPSO") vessel was terminated by Dana Petroleum after reaching its longstop date in March 2025, the possibility remains to recontract the vessel at an appropriate time, with NEO NEXT Energy remaining a 23% owner of the FPSO vessel

§ Second Term of the Buchan P2498 licence extended by 24 months to 28 February 2027.  The extension was requested to provide JOG and its joint venture partners with the time required to finalise the Buchan Field Development Plan

§ Solid financial position, with cash at the end of H1-2025 of £11.3 million and the total annualised running cost of the business reduced by approximately 50% to an expected £1.5 million

 

 

Andrew Benitz, CEO of Jersey Oil & Gas, commented:

"Against a challenging backdrop where the North Sea oil and gas industry has been unnecessarily damaged by the 78% EPL tax rate, we have positioned the Company to withstand the on-going fiscal and regulatory uncertainty by halving the cost base and maintaining a strong cash position.

 

We hold an interest in a potentially incredible prize in the form of our carried interest to first oil on the Buchan redevelopment project.  This has the potential to unlock significant UK investment, create over 1,000 well paid jobs and ultimately realise hundreds of millions in future tax payments to the exchequer.  We urge the government to complete its consultation process on the future fiscal regime and remove the EPL in order to establish a playing field that facilitates future investments.  Homegrown energy should be prioritised over more carbon intensive energy imports and with Buchan, we have a great opportunity to be at the forefront of championing a fully integrated production hub that aligns with the industry's decarbonisation strategy."

Enquiries:

Jersey Oil and Gas plc	Andrew Benitz	c/o Camarco: 020 3757 4980
Strand Hanson Limited	James Harris Matthew Chandler James Bellman	Tel: 020 7409 3494
Zeus Capital Limited	Simon Johnson	Tel: 020 3829 5000
Cavendish Capital Markets Limited	Neil McDonald	Tel: 020 7220 0500
Camarco	Billy Clegg Rebecca Waterworth	Tel: 020 3757 4980

 

- Ends -

 

Notes to Editors:

Jersey Oil & Gas (AIM:JOG) is a UK energy company focused on creating shareholder value through the development of oil and gas assets and the execution of accretive transactions. 

 

The Company has a focused asset portfolio centred on developing homegrown North Sea resources that support the UK's energy requirements as it transitions towards net zero.  JOG holds a 20% 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 Horst ("Buchan") oil field and J2 oil discovery and licence P2170 contains the Verbier oil discovery.

 

JOG's strategy is focused on unlocking the organic value of its GBA assets, combined with the pursuit of potential asset acquisitions that bring cash flow, diversity and quality investment opportunities into the portfolio.  The Company's Board and Executive team have a wealth of experience in managing and growing publicly listed energy companies and a strong track-record of value creation in the UK North Sea's oil and gas sector.

 

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

Following the progress made in 2023 and 2024 to advance the Buchan Horst ("Buchan") redevelopment project towards sanction and Field Development Plan ("FDP") approval, the first half of this year has involved a concerted effort to engage with the UK government on the future of the UK North Sea and the fundamentals required to maximise the long term value of the oil and gas industry for the benefit of all.  This engagement has been driven by the three public consultations that have been launched by the government since taking office in July 2024 concerning the inclusion of "Scope 3" emissions in environmental impact assessments ("EIAs"), the future for UK North Sea oil and gas licensing and the long-term fiscal regime. 

 

Our team has worked closely with our Buchan joint venture partners, NEO NEXT Energy ("NEO") and Serica Energy ("Serica"), and industry trade bodies to shape our responses to the public consultations.  We are encouraged that the government has now issued new guidelines for EIA submissions and this should pave the way for new development projects like Buchan to secure formal approval following over a year of regulatory inactivity.  This will naturally require an addendum to the previously submitted Buchan EIA to be issued to the Offshore Petroleum Regulator for the Environment and Decommissioning ("OPRED") as part of the overall regulatory process required to reach FDP approval.

 

While clarity has been obtained on the environmental guidelines for new developments, the conclusions to the fiscal and licensing consultations remain outstanding.  Most significantly, it is the outcome of the fiscal consultation that will dictate the ability of the joint venture to progress Buchan towards project sanction and FDP approval

 

Development Activities

 

The uncertainties created by the various abovementioned fiscal and regulatory consultations resulted in a slowdown in the Buchan redevelopment project's activities in 2024.  Nevertheless, targeted activities have continued during the first half of 2025, with a key focus being on how to incorporate Scope 3 emissions into the Buchan environmental statement.  The joint venture has been working with Genesis, a leading energy consulting company that supported the initial regulatory submission, to undertake the necessary additional preparatory work.  A number of other technical and commercial workflows have also been progressed throughout the period, including the continuation of subsurface modelling studies, the specification of the optimal drilling completion plan for the requisite production wells and the agreement of commercial terms for the utilisation of gas export infrastructure.  Alongside the preparation of the environmental statement addendum, work is also scheduled to commence on value engineering opportunities and optimisations around the forecast capital expenditure for the project.  This represents an important element of the assurance and peer review processes that the joint venture undertakes as part of the project sanction and regulatory approval activities.

 

In light of the project delays created by the various consultations, an extension to the Buchan P2498 licence was obtained from the North Sea Transition Authority ("NSTA") earlier in the year.  The extension gives the joint venture until 28 February 2027 to obtain Field Development Plan ("FDP") approval. 

 

Given the uncertainty surrounding the timing of FDP approval, the agreement for the acquisition of the "Western Isles" floating production, storage and offloading ("FPSO") vessel for redeployment on the Buchan field was terminated in March 2025 by Dana Petroleum after the longstop date in the agreement was passed.  NEO, Buchan's Operator, is a 23% owner of the vessel and the possibility remains to recontract the vessel at the appropriate time for deployment on Buchan.  The vessel remains anchored in Scapa Flow in the Orkney Isles, having departed the Western Isles field location in summer 2024.

 

Subject to satisfactory clarity being obtained from the government consultations, there are clear steps that need to be completed to move the Buchan project forward to FDP approval and onward thereafter into the development execution phase of activities.  These are:

§ Reactivation and completion of the contract tender process for the main drilling, subsea and FPSO modification workscopes

§ Re-contracting of the FPSO

§ Submission to OPRED of an updated EIA that incorporates the requirements of the recently issued guidance concerning the inclusion of Scope 3 emission forecasts for the project

§ Joint venture finalisation of the FDP and approval of the NSTA

 

While the exact timeline for completing these activities has not yet been finalised, it is likely that a positive outcome from the consultations would lead to FDP approval being targeted during 2026.

 

Support for Domestic Industry

 

The facts point time and time again to a balanced energy system providing the best solution to our country's energy security.  Unfortunately, the net zero debate has become polarised, unnecessarily pitting domestic hydrocarbons against green alternatives - the stark reality is that we need it all to satisfy the country's energy demands and minimise hydrocarbon imports.    In the case of Buchan, the project has the potential to contribute approximately 70 million barrels of oil equivalent ("Mmboe") to future North Sea production.  Importantly, it also provides the opportunity to unlock capital investment of around £1 billion into the UK economy, create over 1,000 well paid jobs across the UK, generate a new energy hub that helps facilitate investment into a major new floating offshore wind project and pay hundreds of millions in tax to the Exchequer.  It is therefore hoped that the positive economic impact that Buchan, and potential other North Sea projects like it, can have on the UK, will be recognised in the actions of the government as it works to close out its on-going fiscal and regulatory consultations over the coming months.  The UK needs economic growth and a project like Buchan would be particularly accretive to the economy for years to come.

 

The fiscal consultation is of critical importance to our project and we are hopeful of seeing clarity on this aspect during the Autumn Statement.  The alternative oil and gas pricing mechanisms that have been tabled as a replacement for the Energy Profits Levy ("EPL"), which punitively taxes all profits at 78%, sets a threshold price above which a windfall tax would be charged.  While the mechanisms being considered are workable alternatives, the key elements concerning the actual commodity prices at which the additional tax would kick in, and the level of the tax itself, are yet to be defined.  We are far from being in a windfall commodity price environment, as has been reflected in other countries which imposed similar windfall taxes after Russia's invasion of Ukraine in February 2022 and have now removed them.  To mitigate some of the damage the EPL has already done, industry is urging the government to replace it with the mechanism resulting from the current consultation rather than waiting until 2030 when it is currently scheduled to fall away.

 

Solid Financial Position

 

Financially the Group is strongly positioned with total cash reserves at the end of H1 2025 of £11.3 million and no debt.

 

The total annualised cash running cost of the business has been reduced by approximately 50% to an expected £1.5 million.  In addition to cutting corporate and operational costs, all staff and Directors' salaries have been reduced by 50% to reflect the slowdown in Buchan project activities at this time.

 

As a result of the terms of the farm-out agreements executed with NEO and Serica, the Company's 20% share of Buchan project expenditure is fully carried by our two joint venture partners, based on the approved FDP budget.  A further $20 million in cash is receivable under the terms of the farm-out agreements following approval of the Buchan FDP by the NSTA and receipt of the associated regulatory and legal consents.

 

Summary and Outlook

 

JOG is well placed financially to see through this period of protracted uncertainty for the industry, however the reduction in investment activity witnessed across the UK Continental Shelf as a direct result of the EPL is damaging sentiment and driving investment elsewhere.  We urge the government to remove the EPL as soon as practicable.  All forms of domestic energy must rank above more carbon intensive energy imports and with Buchan, we have a great opportunity to be at the forefront of championing a fully integrated production hub that aligns with the industry's decarbonisation strategy. 

 

There is also more for us to do as we seek to grow our business in the North Sea.  To both accelerate potential value creation from the Company's existing UK tax allowances of over $100 million and bring cash flow into the business, a number of potential producing asset acquisitions have been pursued and we continue to be proactive in our efforts to grow the business for the collective benefit of our shareholders and other stakeholders.  We greatly appreciate and value the support and patience we have received from our shareholders at this complicated time for the industry.

 

 

Les Thomas Non-Executive Chairman

Andrew Benitz Chief Executive Officer

 3 September 2025

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

FOR THE SIX MONTHS ENDED 30 JUNE 2025

 

			6 months to		6 months to		Year to
			30/06/25		30/06/24		31/12/24
			(unaudited)		(unaudited)		(audited)
	Notes		£		£		£
Administrative expenses	4		(938,553)		(2,791,954)		(4,079,726)
OPERATING LOSS			(938,553)		(2,791,954)		(4,079,726)
Finance income			242,799		171,601		542,637
Finance expense			(1,504)		(1,799)		(3,185)
LOSS BEFORE TAX			(697,258)		(2,622,152)		(3,540,274)
Tax	5		-		-		-
LOSS FOR THE PERIOD			(697,258)		(2,622,152)		(3,540,274)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD			(697,258)		(2,622,152)		(3,540,274)
Total comprehensive loss attributable to:
Owners of the parent			(697,258)		(2,622,152)		(3,540,274)
Loss per share expressed
in pence per share:
Basic	6		(2.13)		(8.03)		(10.84)
Diluted	6		(2.13)		(8.03)		(10.84)

 

The above condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

AS AT 30 JUNE 2025

			30/06/25		30/06/24		31/12/24
			(unaudited)		(unaudited)		(audited)
	Notes		£		£		£
NON-CURRENT ASSETS
Intangible assets - exploration & development costs	7		11,795,976		11,334,984		11,741,406
Property, plant and equipment	8		1,300		2,050		1,675
Right-of-use assets	12		55,864		111,729		83,797
Deposits			17,466		18,772		17,466
			11,870,606		11,467,535		11,844,344
CURRENT ASSETS
Trade and other receivables	9		299,902		314,171		86,732
Cash and cash equivalents	10		834,777		2,031,761		6,185,872
Term deposits	11		10,500,000		11,000,000		6,150,000
			11,634,679		13,345,932		12,422,604
TOTAL ASSETS			23,505,285		24,813,467		24,266,948
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital			2,574,529		2,574,529		2,574,529
Share premium account			110,535,059		110,535,059		110,535,059
Share options reserve			4,437,142		4,432,875		4,504,673
Accumulated losses			(93,805,979)		(92,582,254)		(93,349,289)
Reorganisation reserve			(382,543)		(382,543)		(382,543)
TOTAL EQUITY			23,358,208		24,577,666		23,882,429
NON-CURRENT LIABILITIES
Lease liabilities	12		-		43,105		14,585
			-		43,105		14,585
CURRENT LIABILITIES
Trade and other payables	13		103,973		136,710		313,211
Lease liabilities	12		43,104		55,986		56,723
			147,077		192,696		369,934
TOTAL LIABILITIES			147,077		235,800		384,519
TOTAL EQUITY AND LIABILITIES			23,505,285		24,813,467		24,266,948

 

The above condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

FOR THE SIX MONTHS ENDED 30 JUNE 2025

 

			Called up share		Share premium		Share options		Accumulated		Re- organisation		Total
			capital		account		reserve		losses		reserve		equity
			£		£		£		£		£		£
			(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
At 1 January 2024			2,574,529		110,535,059		3,890,986		(89,960,102)		(382,543)		26,657,929
Loss for the period and total comprehensive income			-		-		-		(2,622,152)		-		(2,622,152)
Share based payments			-	-	-		541,889		-		-		541,889
At 30 June 2024			2,574,529		110,535,059		4,432,875		(92,582,254)		(382,543)		24,577,666
At 1 January 2025			2,574,529		110,535,059		4,504,673		(93,349,289)		(382,543)		23,882,429
Loss for the period and total comprehensive income			-		-		-		(697,258)		-		(697,258)
Expired share options			-	-	-		(240,568)		240,568		-		-
Share based payments			-	-	-		173,037		-		-		173,037
At 30 June 2025			2,574,529		110,535,059		4,437,142		(93,805,979)		(382,543)		23,358,208

 

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 accumulated losses in respect of options exercised or cancelled/lapsed
Accumulated losses	Cumulative losses recognised in the Condensed Consolidated Statement of Comprehensive Income
Reorganisation reserve	Amounts resulting from the restructuring of the Group at the time of the Company's Initial Public Offering (IPO) in 2011

 

The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2025

			6 months to		6 months to		Year to
			30/06/25		30/06/24		31/12/24
			(unaudited)		(unaudited)		(audited)
	Notes		£		£		£
CASH FLOWS FROM OPERATING ACTIVITIES
Cash used in operations	14		(860,901)		(2,678,054)		(3,359,763)
Interest paid			(1,504)		(1,799)		(3,185)
Net cash used in operating activities			(862,405)		(2,679,853)		(3,362,948)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds received from farm-out transaction	7		-		5,519,216		5,519,216
Interest received			46,425		171,601		490,674
Purchase of tangible assets	8		-		(2,363)		(2,363)
Purchase of intangible assets			(156,908)		(432,402)		(736,487)
Investing cash flows before movements in capital balances			(110,483)		5,256,052		5,271,040
Transfers to term deposits			(4,350,000)		(6,000,000)		(1,150,000)
Net cash used in investing activities			(4,460,483)		(743,948)		(4,121,040)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal elements of lease payments			(28,207)		(27,372)		(55,155)
Net cash used in financing activities			(28,207)		(27,372)		(55,155)
(DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS			(5,351,095)		(3,451,173)		702,937
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD			6,185,872		5,482,935		5,482,935
CASH AND CASH EQUIVALENTS AT END OF PERIOD	10		834,777		2,031,761		6,185,872

 

The above condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.

 

 

 

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

FOR THE SIX MONTHS ENDED 30 JUNE 2025

 

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 71-75 Shelton Street, Covent Garden, London WC2H 9JQ.

               

The reporting period for the Group's condensed consolidated interim financial statements is the six-month period from 1 January 2025 to 30 June 2025, which were authorised for issue in accordance with a resolution of the Board of Directors on 3 September 2025.

 

 

2.             SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Preparation

 

The interim condensed consolidated financial statements for the six months ended 30 June 2025 were prepared in conformity with the requirements of the Companies Act 2006 (the "Companies Act").

 

These unaudited interim condensed 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 2024. These unaudited interim condensed 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 2024.

 

The financial information contained herein 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 2024, 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 under the historic cost convention. The interim condensed consolidated 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 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 a scenario where the Buchan redevelopment project did not progress for whatever reason(s) and the future farm-out instalment payments were not realised the Group has the funds to 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 Buchan redevelopment project 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 latest audited annual financial statements for the year ended 31 December 2024.

 

The impact of seasonality or cyclicality on operations is not considered significant on the condensed consolidated interim 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 as a whole is the Group's chief operating decision maker within the meaning of IFRS 8 "Operating Segments".

 

During the period to 30 June 2025 and during the year ended 31 December 2024 the Group had no revenue.

 

 

4.             ADMINISTRATIVE EXPENSES

 

The following significant costs are included:

 

		30/06/25		30/06/24
		(unaudited)		(unaudited)
		£		£
Third Party Transaction Fees / Bonuses		-		1,187,661
Non-Cash Share Based Payments (net)		(67,531)		541,889

 

The H1 2024 Transaction Fees/Bonuses include payments of £490,000 to the Executive Directors earned because of the Serica Farm-out and settled conditional upon deal completion. Non-Cash Share Based Payments decreased in H1 2025 mainly due to share options issued to Directors in January 2018 expiring in January 2025.

 

 

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 2025 due to trading losses. As at 31 December 2024, the Group held tax losses of approximately £62m (2023: £63m).

 

 

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.

 

The share options issued in the Group that would potentially dilute earnings per share in the future have not been included in the calculation of diluted loss per share as their effect would be anti-dilutive.

 

 

		Losses attributable to ordinary shareholders		Weighted average number of shares		Per share amount Pence
		£
Period ended 30 June 2025
Basic and Diluted EPS
Loss attributable to ordinary shareholders		(697,258)		32,667,627		(2.13)

 

 

7.             INTANGIBLE ASSETS

						Exploration
						Costs
						£
COST
At 1 January 2025						11,916,647
Additions						54,570
At 30 June 2025						11,971,217
ACCUMULATED AMORTISATION
At 1 January 2025						175,241
At 30 June 2025						175,241
CARRYING AMOUNT 30 June 2025						11,795,976

 

Additions represent the work capitalised on the Buchan redevelopment assets.

 

At the start of 2023 the Company owned 100% interests in two licenses; P2498 containing the Buchan field and J2 Discovery, and P2170 containing the Verbier discovery.

 

At the end of 2023 the costs incurred in acquiring and advancing the licenses to their current state was £25,700,982 (2022: £24,548,122). During 2023 a farm-out of a 50% interest in both licenses to NEO was completed and in 2024 a farm out of a 30% interest in both licenses to Serica was completed. Both deals had similar terms whereby in exchange for the farm in, the respective parties agreed to a series of cash payments and both a pre-development and development carry on the Buchan Redevelopment project. In accordance with our farm-out policy for assets at that stage of development, the cash proceeds of £5,519,216 in 2024 and £9,103,944 in 2023 were both deducted from the carrying value of the assets.

 

In line with the requirements of IFRS 6, we have considered whether there are any indicators of impairment on the exploration and development assets.  Based on our assessment, as at 30 June 2025 there were not deemed to be indicators that the licences are not commercial and that the carrying value of £11,795,976 continues to be supported by ongoing development work on the licence areas with no impairments considered necessary. It is noted that increases in North Sea taxes in 2024 together with further fiscal instability created by the ongoing government consultation has increased uncertainty around the timing of potential sanction of the Buchan redevelopment project by the Joint Venture.

 

 

8.             PROPERTY, PLANT AND EQUIPMENT

																	Computer
																	and office
																	equipment
																	£
	COST
	At 1 January 2025																230,810
	Additions																-
	At 30 June 2025																230,810
	ACCUMULATED AMORTISATION, DEPLETION AND DEPRECIATION
	At 1 January 2025																229,135
	Charge for period																375
	At 30 June 2025																229,510
	CARRYING AMOUNT 30 June 2025																1,300

 

 

9.             TRADE AND OTHER RECEIVABLES

 

		30/06/25		30/06/24		31/12/24
		(unaudited)		(unaudited)		(audited)
		£		£		£
Other receivables		30		48,687		29
Prepayments and accrued income		267,491		218,572		67,934
Value added tax		32,381		46,912		18,769
		299,902		314,171		86,732

 

As at 30 June 2025, 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 condensed consolidated statement of cash flows in respect of cash and cash equivalents are in respect of these consolidated statement of financial position amounts:

 

		30/06/25		30/06/24		31/12/24
		(unaudited)		(unaudited)		(audited)
		£		£		£
Cash and cash equivalents		834,777		2,031,761		6,185,872

 

The cash balances are placed with creditworthy financial institutions with a minimum rating of 'A'.

 

 

11.           TERM DEPOSITS

		30/06/25		30/06/24		31/12/24
		(unaudited)		(unaudited)		(audited)
		£		£		£
Maturing within six months		10,500,000		11,000,000		6,150,000

 Term deposits are placed with a creditworthy financial institution with a minimum rating of 'A'

 

 

12.           LEASES 

 

Amounts recognised in the statement of financial position:.

 

	30/06/25		30/06/24		31/12/24
	(unaudited)		(unaudited)		(audited)
Right-of-use Assets	£		£		£
Buildings	55,864		111,729		83,797
	55,864		111,729		83,797

 

	30/06/24		30/06/24		31/12/24
Lease liabilities	(unaudited)		(unaudited)		(audited)
	£		£		£
Current	43,104		55,986		56,723
Non-current	-		43,105		14,585
	43,104		99,091		71,308

 

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 2025 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:

 

	30/06/25		30/06/24		31/12/24
	(unaudited)		(unaudited)		(audited)
	£		£		£
Depreciation charge of right-of-use asset
Buildings	27,932		27,932		55,864
	27,932		27,932		55,864

 

	30/06/25		30/06/24		31/12/24
	(unaudited)		(unaudited)		(audited)
	£		£		£
Interest expenses (included in finance cost)
Buildings	(968)		(1,799)		(3,185)
	(968)		(1,799)		(3,185)

 

 

 

13.           TRADE AND OTHER PAYABLES

 

 

		30/06/25		30/06/24		31/12/24
		(unaudited)		(unaudited)		(audited)
		£		£		£
Trade payables		56,468		59,920		44,028
Accrued expenses		17,666		16,024		237,075
Taxation and Social Security		21,334		50,086		32,108
Other payables		8,505		10,680		-
		103,973		136,710		313,211

 

 

 

14.           NOTES TO THE CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 

RECONCILIATION OF LOSS BEFORE TAX TO CASH USED IN OPERATIONS

 

		30/06/25		30/06/24		31/12/24
		(unaudited)		(unaudited)		(audited)
		£		£		£
Loss for the period before tax		(697,258)		(2,622,152)		(3,540,274)
Adjusted for:
Depreciation		375		313		688
Depreciation on right-of-use asset		27,932		27,932		55,864
Share based payments		173,038		541,889		764,774
Finance costs		1,504		1,799		3,185
Finance income		(242,799)		(171,601)		(542,637)
		(737,208)		(2,221,820)		(3,258,400)
Decrease/(increase) in trade and other receivables		(16,796)		147,983		428,691
Decrease in trade and other payables		(106,897)		(604,217)		(530,054)
Cash used in operations		(860,901)		(2,678,054)		(3,359,763)

 

 

15.           POST BALANCE SHEET EVENTS

 

None.

 

 

16.           AVAILABILITY OF THE INTERIM REPORT 2025

 

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 71-75 Shelton Street, Covent Garden, London WC2H 9JQ. 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.