Jersey Oil and Gas plc
Annual Report
Year ended 31 December 2024
Jersey Oil and Gas plc
CONTENTS
Overview
Chairman & Chief Executive Officer’s Report
01
Strategic Report
Strategic Report
04
Our Assets
06
Financial Review
08
Section 172 Statement
10
Risks
13
Our Governance
Board of Directors
17
Corporate Governance Report
19
Environment, Social and Governance Report
25
Directors’ Report
32
Directors’ Responsibilities
34
Audit Committee Report
35
Remuneration Report
36
Independent Auditors’ Report
42
Financial Statements
Consolidated Statement of Comprehensive Income
49
Consolidated Statement of Financial Position
50
Consolidated Statement of Changes in Equity
51
Consolidated Statement of Cashflow
52
Notes to the Consolidated Financial Statements
53
Company Statement of Financial Position
75
Company Statement of Changes in Equity
76
Notes to the Company Financial Statements
77
Jersey Oil and Gas plc
Jersey Oil and Gas is a UK energy company focused on creating shareholder value through the
development of oil and gas assets and the execution of accretive transactions.
Following the successful Greater Buchan Area (“GBA”) farm-outs to NEO Energy (“NEO”) and Serica Energy
(“Serica”) in 2023-24, the Company strategically positioned itself as one of the leading UK listed small-cap oil and
gas companies with a high-quality development portfolio and the funding to deliver on its organic growth plans.
Despite the uncertainties that have been created within the UK oil and gas industry as a result of the Energy Profits
Levy (“EPL”) and the on-going consultations that have been launched by the Government, the Company remains
well placed to execute upon its plans for long-term value creation.
Buchan Redevelopment Project
Significant progress was made during 2024 to advance the Buchan Horst (“Buchan”) redevelopment project
towards sanction and Field Development Plan (“FDP”) approval. Despite the project slowdown resulting from the
various Government consultations and the need to obtain sufficient clarity on the outcome of these to finalise the
way forward, three major workstreams have been matured:
Detailed engagement has been on-going on the draft Buchan FDP with the North Sea Transition Authority
(“NSTA”). In addition, the Buchan “Field Determination Area” that defines the maximum geological boundary
of the field, was agreed with the NSTA
The Environmental Impact Assessment (“EIA”) for the project was issued to the Offshore Petroleum Regulator
for the Environment and Decommissioning (“OPRED”) and various activities have been completed to progress
the regulatory evaluation
Front-end engineering and design (“FEED”) studies were completed, the results of which have been used to
define the details of the development execution plan. The primary engineering studies covered the
appropriate solutions for the design of the wells, the subsea infrastructure and the necessary modification and
life extension works required on the planned floating, production, storage and offloading (“FPSO”) vessel.
Offshore surveys were also completed to gather the geotechnical and geophysical data required for the subsea
infrastructure and drilling rig contract tendering processes and to inform the FPSO mooring design
With the announcements during the year of three Government consultations concerning revised guidance for EIAs,
the future for UK North Sea oil and gas licensing and the long-term fiscal regime, the timeline for progressing the
project to the point of joint venture partner sanction and FDP approval was naturally delayed. An extension to the
Buchan P2498 licence was obtained from the NSTA, which means that the joint venture has until 28 February 2027
to obtain FDP approval. Given the uncertainty surrounding the timing of FDP approval, the agreement for the
acquisition of the “Western Isles” FPSO for redeployment on the Buchan field was terminated in March 2025 by
Dana Petroleum (“Dana”) after the longstop date in the agreement was passed. NEO, the Buchan Operator, is a
23% owner of the vessel and the possibility remains to recontract the vessel for deployment on Buchan.
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 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 guidance resulting from
the on-going consultation, which is expected to principally concern 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 still render FDP approval possible during 2026.
As a result of the farm-out transactions with NEO and Serica, the Company is carried for its 20% share of the costs
to take Buchan through to FDP approval, along with its share of the development costs included in the approved
FDP. To date, the financial benefit of this has totalled approximately $25 million in cash milestone payments in
Jersey Oil and Gas plc
addition to expenditure carry. Further cash milestone payments of $20 million are due upon Buchan FDP approval
and receipt of the associated regulatory and legal consents.
Strategic Focus
The Company’s vision is centred on successfully growing the business in a smart and sustainable way, developing
important domestic energy supply in response to society’s energy needs and creating value for our stakeholders.
The organisation is “right sized” for the stage and scale of its activities and maintains a nimble approach to advancing
its key strategic objectives.
The Company remains sharply focused on unlocking the organic value of its existing assets in the GBA, combined
with the pursuit of accretive asset acquisitions that bring cash flow, diversity and quality investment opportunities
into the portfolio. Such opportunities are thoroughly assessed in terms of their potential strategic fit, being mindful
of the quality and unencumbered strengths of our existing portfolio.
Solid Outlook
Jersey Oil & Gas is well positioned to navigate through the current headwinds facing the UK oil and gas industry.
With total year-end cash reserves of approximately £12.3 million and a current cash run rate of around £1.5 million
per annum, the business is financially secure and funded for execution of the Buchan redevelopment programme.
This backdrop provides an attractive springboard from which to realise the full potential and ambitions of the
business for delivering shareholder value.
Jersey Oil and Gas plc
1
CHAIRMAN & CHIEF EXECUTIVE OFFICER’S REPORT
Following the end of a highly
successful year for the Company in
2023, we started 2024 with the
completion of our second Greater
Buchan Area (“GBA”) farm-out
transaction, with a further 30%
interest in the GBA licences being
sold to Serica Energy (“Serica”).
This represented a key moment for
the business, as it provided the
Company with full funding for the
planned redevelopment of the
Buchan Horst (“Buchan”) field. In
addition, the transaction delivered
an upfront cash payment of nearly
£6 million plus potential future
contingent
cash
payments.
Completing this farm-out was a
major
step
forward
towards
securing access to the significant
value associated with a full carry for
our remaining share of the Buchan
project through to first production
for our shareholders.
Buchan Project
During the year, a significant
amount of work was completed by
NEO Energy (“NEO”), as operator of
the GBA licences, on maturing the
requisite engineering and plans for
the sanction of the Buchan project.
The plans have been centred on the
redeployment of the “Western Isles”
Floating Production, Storage and
Offloading vessel (“FPSO”) as a
production
processing
facility
located over the Buchan field, with
up to five gas-lifted production
wells, supported by two water
injection
wells,
connected
via
subsea infrastructure to the vessel.
The FPSO solution involves the
hydrocarbons produced from the
field being processed offshore, with
the oil exported to market via
shuttle tankers and gas via a pipeline
connection to nearby infrastructure.
As a result of the farm-out
agreements with NEO and Serica,
we have been fully carried for our
share of the approximately £24
million that has been spent to date
on the current phase of activities by
the Buchan joint venture.
Regulatory Engagement
Following submission of a draft Field
Development Plan (“FDP”) to the
North Sea Transition Authority
(“NSTA”) at the end of 2023, the
Operator
has
been
actively
engaging
with
the
regulator
throughout the year to assist with
the evaluation of the development
plan. In addition, the specification
of the “Field Determination Area”,
which
defines
the
maximum
geological boundary of the field, has
been agreed with the NSTA and this
forms part of the required inputs to
the formal FDP approval process.
As part of the preparation for
obtaining regulatory approval of the
Buchan FDP, an Environmental
Impact Assessment (“EIA”) was
issued to the Offshore Petroleum
Regulator for the Environment and
Decommissioning
(“OPRED”)
in
early 2024. The EIA public
consultation
process
was
undertaken during the first quarter
of
the
year
and
subsequent
engagement
with
OPRED
has
progressed the required regulatory
evaluation.
However, in September 2024,
OPRED paused the EIA review
process when the UK Government
launched a consultation on new
environmental guidance for oil and
gas developments. This arose from
the Supreme Court’s “Finch” ruling,
requiring regulators to consider the
impact of combustion of produced
hydrocarbons, Scope 3 emissions, in
EIAs for new projects. The
consultation was closed in January
2025, and it is expected that the
Government
will
provide
new
guidance imminently. Based on the
details within the Government
consultation, it is expected that the
Buchan EIA will require a second
public consultation that examines
the Scope 3 emissions associated
with its development. Accordingly,
preparatory
work
has
been
undertaken to prepare a revised EIA
and allow submission to OPRED in a
timely manner once the new
guidance is published.
As a result of the environmental
consultation timeline, along with
the
uncertainties
created
by
instability in the Government’s fiscal
regime for North Sea oil and gas
companies, completion of the pre-
sanction
project
activities
was
materially slowed down by the
Buchan operator in the second half
of 2024. In terms of the fiscal
landscape, in October 2024 the
Government
announced
an
increase in the tax rate on North Sea
oil and gas companies to 78%, the
extension of the Energy Profits Levy
(“EPL”) to March 2030, the removal
of
investment
allowances
associated with the EPL and its
intention to launch a consultation on
the
long-term
fiscal
regime
applicable
to
the
industry.
Furthermore, at the same time the
Government also announced its
intention
to
undertake
a
consultation on the future North
Sea licensing regime. Satisfactory
clarity on the results of these various
consultations is naturally required to
facilitate sanctioning of the Buchan
project.
Given the unavoidable delay to
progressing the approval process
for the Buchan project, the joint
venture partners submitted an
application to the NSTA for a licence
extension in 2024. We were pleased
to announce earlier in the year that
the Second Term of the P2498
Buchan licence has been extended
by 24 months to 28 February 2027.
This extension was requested to
provide the licensees with the time
required to finalise a FDP for the
Buchan field.
Jersey Oil and Gas plc
2
Development Activities & Status
During the first half of the year, the
main project workstream were
centred on completion of the
engineering and subsurface studies
required to enable preparation of
the development plan for sanction
by the partners and regulatory
authorities, such that the project is
capable of being moved into the
execution phase of activities. Front
End
Engineering
and
Design
(“FEED”) studies were completed
with input from several specialist
engineering companies. These
studies have been key to defining
appropriate solutions for the design
of
the
wells,
the
subsea
infrastructure and the necessary
FPSO
modification
and
life
extension works. Alongside this
activity,
the
Operator
also
completed offshore surveys to
gather
the
geotechnical
and
geophysical data required for the
subsea and drilling rig contract
tendering processes and to inform
the FPSO mooring design.
Since the start of the project
slowdown in the latter part of 2024,
the focus of activities has largely
been
on
closing
out
various
technical and commercial matters
that feed into the details of the
development execution plan. These
have included the agreement of
commercial terms for utilisation of
gas
export
infrastructure
and
continued engagement with wind
farm developers regarding the
future electrification potential of the
FPSO,
along
with
detailed
engagement with Dana Petroleum
(“Dana”) on a multitude of pre-
handover FPSO workstreams. This
activity was matured to the point of
obtaining clarity on the outstanding
work required on the vessel to
facilitate handover in the future,
once completed.
While the majority of the required
“Western Isles” FPSO inspection,
verification and pre-transfer work
has been completed by Dana to
satisfy
the
main
technical
requirements of the sale and
purchase
agreement
that
was
executed in 2023, the agreement
longstop date was reached at the
end of February 2025 before all
work
was
completed.
Dana
subsequently
terminated
the
agreement with NEO. The vessel
remains anchored in Scapa Flow, in
the Orkney Isles, with the Western
Isles
joint
venture
partnership
responsible for on-going costs.
NEO, the Buchan Operator, is a 23%
owner of the vessel and the
possibility remains to recontract the
vessel for deployment on Buchan.
There continues to be strong
engagement between the Buchan
joint venture partners, particularly
around
the
key
strategic
engineering decisions and plans for
the development. This engagement
represents an important element of
the assurance and peer review
process that both JOG and Serica
are
undertaking
to
properly
participate in the project sanction
and regulatory approval processes.
Buchan is widely regarded as one of
the largest remaining undeveloped
UK
North
Sea
oil
and
gas
opportunities. As such, it provides a
route to meaningful growth in the
maturing portfolios of our joint
venture partners.
Solid Financial Position
Financially the Group is strongly
positioned with total cash reserves
at the end of 2024 of £12.3 million
and no debt.
The total cash running cost of the
business has been reduced by
approximately 50% to an expected
£1.5 million in 2025 because of
actions taken by the Company
following the slowdown in activities
on the Buchan project. As a result of
the
terms
of
the
farm-out
agreements executed with NEO and
Serica, the Company's 20% share of
the Buchan project expenditure is
fully carried by our two joint venture
partners, based on the approved
FDP budget. A further $20 million
cash payment is payable 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.
A full Financial Review is provided
on page 8 of this report.
Developing Homegrown Energy
The
UK’s
Climate
Change
Committee’s
(“CCC”)
Seventh
Carbon Budget, published on 26
February 2025, forecasts that the
UK will consume between 13-15
billion barrels of oil equivalent
(“boe”) between now and 2050, with
4 billion boe produced domestically.
This
forecast
represents
the
necessity
of
continued
oil
production in our journey to
achieving net zero emissions and
demonstrates why the Government
is right to say that the UK’s North
Sea oil and gas industry will continue
to play an essential role in meeting
our energy needs for decades to
come.
Opponents of our industry believe
that curtailing supply will reduce
consumption,
but
the
CCC’s
forecast demonstrates the reality of
our energy needs. As do the latest
Government figures for the fourth
quarter of 2024, which showed that
whilst
domestic
production
of
primary oil fell by 9%, demand fell
by only 0.4%. The gap between
supply and demand is therefore met
by imports, produced at higher
carbon
intensities,
that
now
contribute two thirds of the UK’s
trade deficit.
If we are to become less reliant on
fossil fuels, then we must reduce
demand
through
changes
in
behaviour by both business and the
public. This will require national
level investment in large-scale
infrastructure projects, but also
individual households to commit
their resources to new technologies.
Investment in increased renewable
Jersey Oil and Gas plc
3
electricity
generation
and
an
enhanced distribution grid will be
for nothing if the public cannot in
tandem afford to buy new electric
vehicles or heat pumps for their
homes. We therefore need a strong
economy if the net zero objectives
are to be met in the desired
timescales.
The CCC’s forecast shows the
contribution that our domestic
industry can deliver to the UK
economy.
Unlocking
additional
resources from waters around the
coast of Britain could add £150bn of
gross value to the UK economy, on
top of the £200bn of economic
value expected from current plans,
according to the OEUK Business
Outlook Report 2025. In addition,
the
2025
Business
Outlook
produced by Offshore Energies UK
reports further upside on offer with
new investment in the sector
potentially delivering an additional 3
billion boe. In the right regulatory
and fiscal environment, the industry
can supply half of the UK’s oil
domestically as we work towards
delivering net zero by 2050.
Government must recognise that a
continuation
in
the
prevailing
negative sentiment towards the
industry of the last few years,
coupled with a punitive EPL, means
that delivery of the baseline 4 billion
boe is by no means certain and the
benefits of the potential upside will
never be realised. The Office for
Budget Responsibility, for example,
reports a 26% reduction in North
Sea
investment
since
the
introduction of the EPL, and we are
witnessing the early cessation of
production from numerous assets
across the basin. This trend needs
to be reversed.
A reset is therefore required, one
that recognises and supports the
role our domestic oil and gas
industry can play in providing our
vital
energy
needs
and
strengthening
our
economic
outlook. We welcome and are
encouraged by the Government’s
recent consultations on the future of
the
North
Sea
and
on
the
introduction of a fairer fiscal
mechanism for the industry. We
have worked with our peers and
industry associations in responding
to the consultations, highlighting
the
contribution
the
Buchan
development can deliver; namely £1
billion investment into the UK
economy and direct job creation.
This will stimulate a supply chain
that needs support now if it is to
invest and expand its offerings to
the technologies of the future,
facilitating investment in increased
renewables
infrastructure
and
injecting hundreds of millions into
the UK Treasury.
The
UK
therefore
has
an
opportunity to show true climate
leadership, by demonstrating that
through
collaboration
between
Government, oil and gas and clean
energy
developers,
we
can
maximise production of our own
natural resources, delivering them
at lower carbon intensities than
imports and in turn strengthening
our
economy
and
facilitating
investment in new technologies.
Government
can
show
this
leadership through the introduction
of a sustainable fiscal and licensing
regime,
that
encourages
investment in the oil and gas sector,
slows or even reverses the rate of
production decline
and defers
decommissioning. In doing so we
can enhance our energy security
and bolster our economy.
Summary and Outlook
We will continue to work tirelessly in
our efforts to drive the Buchan
development
to
a
successful
conclusion over the months ahead,
alongside setting the right long-
term future direction for the
business. JOG has been at the
forefront of championing a fully
integrated production hub energy
project
that
aligns
with
the
industry’s decarbonisation strategy.
We believe there is more for us to do
as we grow our business in the North
Sea. In order 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 UK producing
asset acquisitions are being actively
evaluated and we continue to be
proactive in our efforts to grow the
business further for the collective
benefit of our shareholders and
other stakeholders.
The JOG team has demonstrated
through our achievements to date
that the Company has the skills and
capabilities to deliver upon the
strategic imperatives of a well-
defined business plan. Accordingly,
as we shape our next steps, we will
draw upon those key resources to
maximise the long-term value of the
business for our shareholders. 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
27 May2025
Jersey Oil and Gas plc
4
STRATEGIC REPORT
Our vision is to become a highly
profitable UK independent oil and
gas company through successfully
growing the business in a smart and
sustainable
way,
developing
important domestic energy supply
in response to society's energy
needs and creating value for all our
stakeholders.
Business Review
& Future Activities
The
principal
activity
of
the
Company is that of an upstream oil
and gas business in the United
Kingdom. JOG is a public limited
company incorporated in England
and Wales (Company number
07503957) and is quoted on the
Alternative
Investment
Market
(AIM)
of
the
London
Stock
Exchange under the ticker AIM:JOG.
The Company is required by the
Companies Act 2006 to set out in
this report a review of the business
during the year ended 31 December
2024 and the position of the
Company at the end of the year, as
well as the principal risks and
uncertainties
it
faces.
The
information
that
fulfils
these
requirements, including discussion
of
the
business
and
future
developments, is set out in the
Chairman and Chief Executive
Officer’s joint report and the
Strategic Report.
Business Strategy
We are focused on building a
resilient business, able to deliver on
our value-led growth strategy with
the aim of generating material long
term returns for our shareholders.
Our strategy is focused on unlocking
the organic value of our existing
assets in the GBA, combined with
the pursuit of potential accretive
asset acquisitions that bring cash
flow,
diversity
and
quality
investment opportunities into the
portfolio.
Central to our strategy is identifying
and stewarding the right assets,
where we can add value. Our key
strategic priorities set out how we
will achieve this, namely:
Leveraging the value of our core
GBA assets
Capitalising
on
the
team’s
experience and track record of
successfully
developing
and
growing energy businesses
Engaging in strategic M&A
Maintaining a prudent and
disciplined financial structure.
History & Growth
The
Company
has
grown
organically and through strategic
transactions to become one of the
highest quality small-cap oil and gas
companies quoted on the AIM
market in London.
The Company was formed in 2014
via a c.£500k combination with
London quoted company Trap Oil
Limited in 2015. We recapitalised
the business, refocused the asset
portfolio on the core UK North Sea
licence area we have today and
established an exciting and fully
funded position in one of the UK’s
most material oil development
projects, the Buchan development.
The delivery of this strategic plan
has
been
made
possible
by
attracting industry funding and
investment
into
our
capital
expenditure programmes, along
with prudent cost management.
While finalisation of the long-term
fiscal and regulatory regime that will
apply in the UK North Sea is
currently under consultation and
has resulted in a slowdown in
activities
on
the
Buchan
development project, it is apparent
that satisfactory resolution of the
applicable
framework
has
the
potential to unlock significant value
for our shareholders.
The GBA is estimated to contain
gross discovered and recoverable oil
volumes of over 100 million barrels
across the Buchan field and Verbier
and J2 discoveries, along with
significant additional exploration
upside opportunities and third-party
regional discoveries that could be
tied
back
to
the
Buchan
infrastructure.
Greater Buchan Area
Having successfully aggregated the
GBA resource base over recent
years
and
progressed
the
development planning required to
monetise the area, the farm-out
transactions that were completed in
2023 and 2024 brought in high
quality
industry
partners
and
funding that has enabled the
Buchan development project to
progress.
In exchange for entering into
agreements with NEO and Serica to
divest an aggregate 80% interest in
the two licences that comprise the
GBA, the Company receives:
An uncapped carry for JOG’s
20% share of the costs to take
the Buchan field through to FDP
approval
A 20% carry of the Buchan field
development costs, as approved
in the FDP; equivalent to a 1.25
carry ratio – estimated capital
expenditure of approximately
£950 million (100%)
$3.2 million cash on completion
of the transactions
$15 million cash payment for
finalisation
of
the
GBA
development solution, involving
redeployment of the Western
Isles FPSO
$20
million
cash
payment
following approval by the NSTA
of the Buchan FDP and receipt
of associated regulatory and
legal consents
Jersey Oil and Gas plc
5
$8 million cash payment on each
FDP approval by the NSTA in
respect of the J2 and Verbier oil
discoveries.
Following
completion
of
the
transactions with NEO in June 2023
and Serica in February 2024, along
with finalising the FPSO based
development
solution,
the
Company has received a total of $18
million of the abovementioned
agreed milestone cash payments so
far. The Company has also received
the benefit to date of approximately
$6 million of carried Buchan
development capital expenditure.
An agreement to acquire the
‘Western
Isles’
FPSO
for
redeployment on the Buchan field
from its existing owners, Dana
Petroleum (Operator, 76.9188%)
and NEO (23.0812%), was executed
in November 2023. The agreement
provided for handover of the FPSO
following approval of the Buchan
FDP.
At the time of executing the FPSO
acquisition
agreement
it
was
anticipated that the project would
be in a position to achieve FDP
approval around the end of 2024
and thereafter receive the transfer
of the FPSO. While much of the
required work was progressed to
achieve
this
objective,
the
Government’s decision to launch
consultations
regarding
the
environmental, fiscal and licensing
regulations governing the UK oil and
gas
industry
resulted
in
the
inevitable decision by the joint
venture in the second half of 2024 to
slowdown activities on the project
while awaiting additional clarity on
these consultations.
In light of the delay in project
sanction
and
the
associated
approval of the FDP, the FPSO
acquisition
agreement
was
terminated by Dana Petroleum in
March 2025, after the agreement
longstop date was passed. The
Buchan joint venture’s ability to
recommit to the acquisition of the
FPSO is naturally linked to the
satisfactory
conclusion
of
the
consultations and completion of the
pre-handover work Dana Petroleum
is required to do on the vessel. NEO
remains an existing 23% owner of
the vessel, alongside Dana.
Following an application submitted
to the NSTA during 2024, the
Second Term of the P2498 Buchan
licence was extended by 24 months
to 28 February 2027. This extension
was requested to provide the joint
venture partners with the time
required to finalise a FDP for the
field. While the draft FDP has
already been submitted to the
NSTA for the Buchan development,
the exact timing for progressing this
through
to
approval
will
be
determined once clarity on the
longer term regulatory and fiscal
terms for the industry that result
from the on-going consultations are
understood.
Growth Through Acquisitions
Our primary focus remains on
meeting the next key milestone for
the GBA, being FDP approval for the
Buchan redevelopment project, and
unlocking the full value of the wider
area. At the same time, we continue
to actively review and consider
potential
asset
acquisition
opportunities that could bring cash
flow,
diversity
and
quality
investment opportunities into our
portfolio. Such opportunities are
thoroughly assessed in terms of the
potential strategic fit, being mindful
of the quality and unencumbered
strengths of our existing portfolio.
Jersey Oil and Gas plc
6
OUR ASSETS
JOG has constructed a high-quality
UK North Sea licence portfolio
focused on the GBA. At the heart of
our
assets
is
the
planned
redevelopment of the Buchan oil
field (formally named “Buchan
Horst”).
Quality portfolio: The GBA
consists of two licences, P2498
and P2170, which contain the
Buchan redevelopment project,
the J2 and Verbier oil discoveries
and
several
drill-ready
exploration prospects
Strategic focus: JOG established
the GBA by consolidating the
licence interests and taking sole
ownership of the portfolio,
thereby providing control and
flexibility to shape the optimal
way forward and route to
monetisation
Material
resource
base:
In
aggregate the GBA licences are
estimated to contain gross
discovered oil and gas resources
of over 100 MMboe
Important step to monetisation:
JOG
completed
pivotal
transactions in 2023 and 2024 to
secure two high-quality industry
partners and funding to develop
the GBA
Valuable equity interest: JOG
owns a 20% non-operated
interest in the GBA, with funding
to Buchan first oil provided by
the GBA partners, NEO and
Serica, following the farm-out
transactions that have been
completed
Strong Industry Partners: NEO
(50% interest, Operator) and
Serica (30% interest) are leading
independent
oil
and
gas
operators. Further to the recent
announcement of the strategic
merger of NEO and Repsol
Resources UK, this combination
is expected to create a business
that is the second largest
producer in the UK North Sea
Greater Buchan Area
The GBA is well positioned to deliver
material long-term income from a
high-quality development solution
that is aligned with the UK’s energy
transition strategy.
High-quality infrastructure: It is
planned for the GBA to be
developed
through
redeployment of the ‘Western
Isles’
floating
production,
storage and offloading vessel
(FPSO), a vessel that has only
been in operation in the UK
North Sea for seven years, until
summer 2024
‘Hub and Spoke’ solution: The
development plan involves the
FPSO being deployed as the
central oil and gas processing
facility for the area, with initial
production coming from Buchan
followed by the tieback of the
other GBA feeder fields
Low
carbon
development:
Combining re-use of an existing
FPSO,
made
electrification-
ready for connection to one of
the planned nearby floating
offshore
wind
power
developments, makes it the
lowest
full-cycle
carbon
footprint solution for the area
Central to the creation of the GBA
production
hub
is
the
redevelopment of the Buchan oil
field. The plan involves the
installation
of
new
subsea
production gathering infrastructure
tied back to the ‘Western Isles’ FPSO
(subject to acquisition of the vessel).
The Buchan field is to be produced
through up
to five gas-lifted
production wells, supported by two
water injection wells, with oil
offloaded from the FPSO via shuttle
tanker and excess gas exported via a
new gas export pipeline. The FPSO
will
be
modified
to
be
‘electrification-ready’
prior
to
redeployment to the field, such that
it can be connected to one of the
anticipated
third-party
floating
wind power developments that are
intended to be located in close
proximity to the GBA following the
Innovation and Targeted Oil & Gas
(INTOG) licence awards made by
Crown Estate Scotland in 2023.
Buchan Redevelopment
The Buchan field is considered one
of the largest development projects
in the UK North Sea and forms the
central element of creating a
production hub that is in-sync with
the
industry’s
decarbonisation
strategy.
Material resources: the Buchan
field is estimated to contain
gross recoverable oil and gas
resources of approximately 70
MMboe (95% oil), representing
the third largest remaining
development in the UK North
Sea
Well
understood
reservoir:
Buchan was in production for 36
years, under the ownership of
BP,
Talisman
and
Repsol-
Sinopec.
The
field
was
prematurely shut-in during 2017
due to issues with the host
processing
facilities,
leaving
significant untapped potential
that is being targeted by the
field redevelopment plan
Optimised
subsurface
plan:
Deviated production wells are to
be drilled in the crest of the
structure using the latest 3D
seismic, with reservoir pressure
support provided by water
injection,
to
maximise
oil
recovery from the field
The P2498 Buchan licence was
awarded to JOG in 2019, as part of a
wider area development strategy
for the GBA. The Buchan oil field
lies in approximately 110 metres of
water and is located in UKCS blocks
20/05a and 21/01a, 150km northeast
of Aberdeen in the UK North Sea.
Jersey Oil and Gas plc
7
The field was discovered by well
21/01-1 in 1974, which encountered a
~600 metre oil column in over-
pressured, fractured, sandstones of
the Upper Devonian to Lower
Carboniferous Buchan Formation.
The field comprises a horst-like,
tilted, and eroded fault block with
four-way dip closure. Following
appraisal drilling to delineate the
field, Buchan was bought into
production by BP plc in 1981 with
nine development wells and had
initial
peak
oil
production
of
approximately 55 kbbl/d.
Over a period of 36 years the
Buchan field produced 148 MMbbl
of 33 °API sweet crude oil, together
with 37 Bscf of associated gas. The
field ceased production in 2017 due
to the certification limitations of the
Buchan Alpha floating production
vessel that was used as the
processing facility for the field. At
the time the field was shut-in, only
around 29% of the estimated mid
case oil in place had been produced
at a water-cut of approximately
50%.
The premature termination of
production
and
subsequent
relicensing of the acreage to JOG,
has provided the opportunity to
implement an optimised and fit-for-
purpose
redevelopment
plan
designed to maximise economic
recovery and exploit the significant
potential of the field.
GBA Feeder Fields
The Buchan redevelopment plan
provides
the
springboard
for
monetising the wider GBA portfolio.
FPSO feeder fields: The Verbier
& J2 oil discoveries contain
estimated
mid
case
gross
resources of over 40 MMboe
Phased
development
plan:
Discoveries
lie
within
approximately 12km of the GBA
central infrastructure planned
for
the
Buchan
field
redevelopment and can be tied
back to the FPSO to extend GBA
peak production rates
Potential exploration upside:
The drill-ready Cortina, Wengen
and Verbier Deep exploration
prospects all lie within the GBA
licences
Potential third party tie-backs:
The opportunity exists to secure
potential
processing
tariff
revenue from the tie-back of
third-party discoveries that lie in
the vicinity of the GBA
Verbier Discovery
The “Verbier” oil discovery is located
in Blocks 20/5b and 21/1d in licence
P2170. Having completed farm-
outs to Equinor and CIECO in 2016,
an exploration well, followed by an
appraisal
well,
delineated
the
Verbier
oil
discovery.
JOG
subsequently
consolidated
the
licence interests to obtain sole
control of P2170 and established the
discovery as part of its wider GBA
development strategy.
The Verbier discovery, drilled by
well 20/05b-13Z, is considered to be
an extension of the Kimmeridge
Clay Burns Sandstone J2 discovery
and is located some 3-4 km due west
of well 20/05a-10Y. The Upper
Jurassic sequence is relatively thin
over the upthrown Buchan and
Scotney highs but thickens rapidly
into the North Buchan Trough to the
north and east. This stratigraphic
interval has been tested by well
20/05a-10Y and has also proved to
contain
good
quality
reservoir
within
the
Kimmeridge
Clay
Formation in wells 20/05b-13 and
13Z drilled in 2017 by Equinor.
J2 Discovery
The “J2” oil discovery is located in
the P2498 Buchan licence area
(Blocks 20/05a and 21/01a) and was
drilled by well 20/5a-10Y in 2006.
The well was drilled as a deviated
well to test the westerly culmination
of a 3-way dip and fault closed
structure mapped at Late Jurassic,
Sgiath Formation level and located
on a structural terrace downthrown
to the north of the Buchan field. The
well
encountered
hydrocarbons
within the objective shallow marine
Sgiath Formation Sandstone that
flowed at 2,850 bopd plus 1.2
mmscfd (37-degree API, GOR 426
scf/bbl) on test. The well also
encountered
~16
metres
of
excellent quality, deep marine, intra
Kimmeridge Clay Formation, Burns
Sandstone that flowed at 4.8 kbbl/d
plus 2.6 mmscfd (39-degree API,
GOR 500 scf/bbl) on test. JOG
estimates that the J2 oil field
contains approximately 20 MMboe
of mean case recoverable oil
volumes across the two reservoirs.
GBA Licences
Both the P2498 (Buchan) and P2170
(Verbier) licences are in the Second
Term, the period in which licencees
need to obtain FDP approval to
subsequently move into the Third
Term,
which
covers
the
development and production phase
of activities for the life of a field. The
end of the Second Term of the
P2498 licence is 28 February 2027
and 29 August 2026 for the P2170
licence.
Jersey Oil and Gas plc
8
FINANCIAL REVIEW
The GBA farm-outs to NEO and
Serica which completed in 2023 and
2024 respectively, transformed the
financial position of the Group
through the unlocking of cash
milestone payments. The resilience
of the Group to remain fully funded
through the extended period to
anticipated FDP sanction has also
been strengthened substantially by
major reductions in the overhead
costs of running the business.
Cash Resources and
Short-Term Investments
The Group ended 2024 in a
comfortable position, with cash and
term deposits up over £1.8m at
£12.3m (2023: £10.5m) and with no
debt.
Consolidated Statement of
Comprehensive Income
As in the prior year, the Group had
no trading revenues in 2024.
Administrative expenses reduced
28% from £5.7m in 2023 to £4.1m
while interest income increased
over 4 .7 times from the prior year to
£0.5m.
Expensed Costs
2024, like 2023, was defined by the
successful completion of a farm-out
of the GBA licences, which resulted
in the Group incurring associated
external consultancy fees. The deal-
related external fees incurred in
2024 totalled £0.7m (2023: £0.8m)
were in respect of M&A, tax and
legal services. The transactions also
crystallised bonus payments to staff
and Executives of £0.5m (2023:
£0.9m). In addition, there were non-
cash share-based charges of £0.8m
during the year (2023: £1.6m).
The core cash overheads of the
business absent the above deal-
specific and non-cash costs were
£2.0m (2023: £2.4m) and £1.5m
(2023: £2.3m) net of interest.
Capitalised Costs
Costs directly associated with the
GBA development project continue
to be capitalised and amounted to
£0.8 million in 2024, net of partner
recharges (2023: £1.1 million).
These costs were a combination of
license
fees,
completion
of
engineering studies and manpower
costs required to select the optimal
development
solution
and
to
advance
regulatory
approval
through submission of a Concept
Select Report to the NSTA.
During the year, £0.4m of costs
were recovered from the GBA
partners related to the secondment
of JOG personnel to the NEO
project team (2023: £0.4 million).
Simplified Summary of 2024 (refer to pages 49-52 for Full Audited Group Financial Statements)
Cash Movement in Year (£ million)
2024
2023
Cash & Deposits (1 January)
10.5
6.6
NEO & Serica Farm-Outs
- Receipt
5.5
9.1 a
- Fees / Bonuses
-1.2
-1.7 b
Overheads (incl. interest)
- Expensed
-1.5
-2.3 c
- Capitalised
-0.8
-1.2 d
Cash & Deposits (31 December)
12.5
10.5
Loss in Year
2024
2023
Overheads (incl. interest)
-1.5
-2.3 c
NEO Farm-Out Fees / Bonuses
-1.2
-1.7 b
Non-Cash - Share Option Charges
-0.8
-1.6
-3.5
-5.6
Balance Sheet (Intangible Assets)
2024
2023
Cost Capitalised
0.8
1.2 d
NEO Farm-Out Receipts
-5.5
-9.1 a
-4.7
-7.9
Jersey Oil and Gas plc
9
Underlying Cash Costs
The combined core cash overhead
and capital expenditure spend
during the year was £2.3m (2023:
£3.5 million). This represented a 1/3
reduction from the prior year and
was 23% lower than the forecasted
spend of £3.0m for 2024.
As set out in the 2024 Interim
results, the slowdown in Buchan
project activities resulted in the
Company implementing a number
of measures in Q4 2024 to further
reduce the costs of running the
business during this period of
reduced activity.
The Board of Directors was
reduced, with Marcus Stanton
retiring as a Non-Executive
Director at the end of 2024 and
no replacement appointed;
All
remaining
staff
and
Directors’ salaries have been
reduced by 50% during this
time; and,
Steps have been taken that are
expected to result in a reduction
of
other
corporate
and
operational running cost by a
further £0.5 million.
These measures are forecast to
result in the cash costs falling by a
further 50%, from an underlying
annualised level of £3 million, to
under £1.5 million.
GBA Farm-Outs
Following the completion of the
farm-outs with NEO and Serica,
JOG is fully carried for all of its 20%
share of the project costs to take the
Buchan field through to FDP
approval and is also fully carried
through the work programme for
the Buchan development project
included
in
the
FDP
budget
approved by the joint venture
partners and the NSTA.
In addition, because of the Serica
farm-out completing during the
year, a payment was received, net of
a £0.5m cost carry reimbursement
pass-through to NEO, of £5.5 m.
In accordance with the Group’s
farm-out accounting policy these
payments, like those received in the
previous year from the NEO farm-
out, were credited against the book
value of the GBA (exploration and
evaluation asset) carried on the
Consolidated statement of financial
position.
Key Performance Indicators
The Group’s Key Performance
Indicators (“KPIs”) in 2023 were
dominated by the farm-out of the
GBA licenses. While the Serica farm
-out was signed in 2023 the
completion and associated bonus
payments were linked to a 2024 KPI
of completion by 29 Feb (15%).
While this target was achieved the
target
of
obtaining
Field
Development Approval in 2024 was
not achieved (45%). Consequently,
the KPI linked to improvement in the
Share Price was also missed (20%).
Additionally, there was a financial
KPI
which
related
to
tightly
controlled cash expenditure (15%)
and non-financial KPIs which relate
to Health, Safety, Security and the
Environment (“HSSE”) (5%). These
were delivered through the absence
of any HSSE incidents and the
continued delivery of core cost
reduction
through
tight
cost
management
and
reduced
manning.
In summary, while over a third of the
KPI’s were met the key omission has
been the delay in FDP approval
following the fiscal and regulatory
uncertainty in the UKCS which
existed during the year.
Going forward the central KPI’s are
advancing
FDP
approval
and
seeking M & A opportunities. The
importance
of
prudent
cost
management
and
safe,
ESG-
conscious
operations
are
also
reflected in the 2025 KPI’s.
Outlook
Having delivered a full carry on both
pre-sanction costs and the capital
expenditure to be set out in the
approved Buchan FDP, the Group
has secured full funding for the
planned redevelopment of the
Buchan field. In addition, as a result
of ending the year with total cash
reserves of £12.3m, combined with
the prudent measures taken to
reduce the cash running costs of the
business to under £1.5m, the
business is robustly funded to be
able to weather the delays in FDP
approval
of
the
Buchan
development.
Graham Forbes
Chief Financial Officer
27 May 2025
Jersey Oil and Gas plc
10
SECTION 172 STATEMENT
The Directors are required by law to act in a way that promotes the success of the Company for
the benefit of shareholders as a whole. In so doing they must also have regard to wider
expectations of responsible business behaviour and have regard to the Company’s stakeholders
and the matters set out in Section 172(1) of the Companies Act 2006.
The Board fully recognises the need to balance the contrasting and, at times, conflicting interests of various
stakeholder groups, whilst focusing on the Company’s purpose, values and strategic priorities. Such engagement
underpins the governance framework embedded throughout our business and helps to ensure we maintain the
highest standards of business conduct.
During the year, the Directors have actively engaged with a number of our stakeholders to build understanding of
their position and what matters to them. This understanding is factored into the Board’s decision-making process.
In relation to the decisions made by the Board during the year ended 31 December 2024, the Board consider, both
individually and together, that they have acted in the way they consider, in good faith, would be most likely to
promote the success of the Company for the benefit of its shareholders as a whole, having regard to its stakeholders
and the matters set out in Section 172(1) of the Companies Act 2006.
Set out below are examples of the Board’s key decisions made during the year, which illustrate how the Directors
have fulfilled their duties.
Decision
Asset Acquisition Transactions
Context &
Link to Strategy
In line with the Company’s strategic objectives to accelerate the potential value creation
from its existing UK tax allowances pool and bring cash flow into the business, a wide
range of asset acquisition opportunities have been evaluated and a number of non-
binding proposals submitted to various companies.
Stakeholders
Investors, Employees, Regulator
Process
The Board is actively engaged in the review of potential acquisition opportunities and
submission of proposals to potential counterparties. The Board considers a wide range of
factors when assessing potential transactions with a view to ensuring they are in the best
long- term interest of the Company, including:
The strategic and financial benefits and risks of potential transactions.
The ability of the Company to finance and optimally structure potential transactions,
including hedging strategies to de-risk future cash flows.
The potential operational risks and future decommissioning costs associated with any
assets.
The quality, financial position and strategic alignment of future joint venture partners
and the ability to secure approvals from such partners and the regulatory authorities.
Jersey Oil and Gas plc
11
Decision
Serica Energy Farm-Out Transaction
Context &
Link to Strategy
In November 2023, the Company entered into a further farm-out agreement with Serica
to divest a 30% interest in the GBA licences in return for a number of cash milestone
payments and a carry for certain elements of JOG’s retained 20% interest in the Buchan
field redevelopment capital expenditure programme. The transaction received regulatory
approval in early 2024 and was formally completed in February 2024. This transaction
followed the corresponding deal completed with NEO in 2023.
Stakeholders
Investors, Partners, Employees, Regulator
Process
The Board considered the terms of the agreement and decided that it was in the best
long- term interest of the Company based on several factors, including:
Delivering an overall solution for the Company’s funding requirements for retaining a
material 20% interest in the GBA licences, and particularly the Buchan redevelopment
project.
By augmenting the GBA joint venture with the addition of Serica Energy, the
transaction further strengthened the technical and financial robustness of the
partnership.
The transaction further enhanced the financial strength of the Company by unlocking
additional cash milestone payments.
The transaction removes the need for the business to raise additional equity to fund its
share of the Buchan field redevelopment programme.
By securing a complete farm-out solution for the GBA, the transaction is fully aligned
with the Company’s stakeholder objectives.
Engaging with our stakeholders is an integral part of how we operate as a business. This engagement enables us to
continue building the business and maintain a motivated workforce, dependable supply chains, close relationships
with Government Regulators, while providing good returns for our shareholders and a positive social impact on our
local communities. We set out below our key stakeholder groups and how we engage with them.
Shareholders
Shareholder
Communication
It is important that our shareholders understand our strategic priorities and ambitions
and their views help inform our decision-making. Communication and engagement are
critical to this aim. We held our last Annual General Meeting in June 2024. Our financial
results are announced twice a year, and regulatory news announcements provide
communication to our shareholders throughout the year, along with our Annual Report
which is designed to help investors and other stakeholders understand our business and
its performance. In conjunction with our announcements our Chief Executive Officer
and other members of the Executive Team meet regularly with, and update, our
investors. Substantial work has also gone into developing the Company’s website so
that it provides useful information on our operations and investment outlook.
Joint Venture Partners
NEO Energy &
Serica Energy
The success of the GBA development will be closely linked to successful engagement
and communication between the GBA joint venture partners.
Regular engagement takes place at all levels within the three organisations, through
both regular dialogue and written communication. Formal meetings, where all three
partners are present, include Steering and Technical committee meetings that are held
monthly.
Jersey Oil and Gas plc
12
Human Resources
Employees
Contractors
Advisors
Our staff and contractors are key to delivering on our business goals and ambitions. We
rely on their skills, experience, knowledge and diversity to deliver our vision to grow a
successful, sustainable and valuable business.
We promote and maintain a strong and embedded culture of health and safety, which
is of fundamental importance to us. We are proud of what we have built and achieved
and work to ensure the business applies good governance practices, based on strong
principles and leadership. We value all employees, and we ensure that our
communications are inclusive, providing full transparency across the business. As a
Company, we are focused on sustaining a positive business culture and continue to
promote our values and behaviours through performance reviews and communication.
Government
Industry Regulators
Regulators are key external stakeholders across various aspects of our business and
particularly in activities that require statutory permits or consents. Briefings and
meetings with the various regulators occur at regular intervals. These sessions are
typically used to provide updates on schedules, a look-ahead on work to be undertaken
and to advise of any forthcoming regulatory submissions or notifications.
The Company maintains an active dialogue with its principal regulator, the NSTA. This
has been particularly so during the processes undertaken to obtain regulatory approvals
for completion of the GBA farm-out transactions in 2023 and 2024, along with approval
for the transfer of operatorship of the GBA licences to NEO. Following completion of
the farm-outs, the Buchan joint venture’s interactions with the NSTA and OPRED have
been largely centred on advancing the draft FDP that has been submitted for the
Buchan development and the associated Environmental Statement.
Suppliers
Procurement and
Contracting
The Company’s Procurement Policy is underpinned by our internal procedures, which
detail the specific processes and governance procedures implemented to provide the
most efficient, effective and cost-conscious supply service, which incorporates
governance, risk management and prompt payment protocols. Our effort is to always
be professional and establish a reputation as being a reliable customer with whom
suppliers and partners want to do business.
When taking on a new supplier, we conduct a detailed review to ensure that we
understand not only the quality of their product or services, but also their policies,
procedures and working practices, in order to make sure they are consistent with our
values and compliance requirements. We keep our suppliers informed of our business
performance through public disclosures and communications where appropriate. This
approach to procurement and contracting is a framework that is also reflected in the
processes and procedures of our key joint venture partners.
Community
Corporate
Citizenship
We aim to be a contributor to economic growth by providing investment opportunities
and creating jobs. We aim to ensure that many people can benefit from our operations.
We also provide support for our local communities through a variety of initiatives
including raising funds for the Army Benevolent Fund and Rock2Recovery, two charities
that provide significant support for the Jersey veteran community, emergency
responders and their families who are affected by stress. Our CEO is a volunteer and
co-director of the Jersey Roast Beef charity lunch that since inception has raised over
£750,000 and JOG is a proud sponsor of these bi-annual fundraising lunches. We also
sponsor the Jersey Oil and Gas curling team, who play in the Aberdeen Finance League.
Jersey Oil and Gas plc
13
RISKS
The Group operates in an environment that has substantial risks, albeit ones that it aims to mitigate and manage.
These risks must be carefully balanced to maximise the chances of providing attractive returns for our shareholders.
These risks are managed with the oversight of the Board. A risk register is reviewed on a routine basis with the
primary risks being presented and discussed at Board meetings.
The risks and opportunities set out below and herein are not exhaustive and additional risks, uncertainties and
opportunities may arise or become material in the future. Any of these risks, as well as other risks and uncertainties
discussed in this report, could have a material adverse effect on the business.
Strategic and External Risks and Opportunities
Regulatory obligations
Material changes in
Governmental approach
towards continued
hydrocarbon exploration,
development and
production
Judicial review
Adverse taxation and
legislative changes
Material oil price
movements
The primary risk to the Group is securing sanction of the Buchan
redevelopment project, both from our industry regulators and our joint venture
partners.
The Group works continually to foster positive relationships at all levels with
relevant Government and regulatory bodies, including but not limited to the
NSTA, the Department for Energy Security and Net Zero and the Offshore
Petroleum Regulator for Environment and Decommissioning (OPRED).
However, political uncertainty regarding the long-term direction of the
environmental and fiscal regimes governing the UK oil and gas industry has
resulted in a period of flux around the approach and attitude towards approval
of future UK hydrocarbon development projects.
The Group is exposed to various regulatory obligations as part of maintaining
its UK North Sea licences. JOG’s portfolio consists of licence P2498 (Buchan
and J2) and P2170 (Verbier). In February 2025, the NSTA approved an
extension of the Second Term of the P2498 licence by 24-months, until
February 2027, in order to provide the licencees with the time required to
finalise an FDP for the Buchan field. The P2170 licence has a Second Term
duration until August 2026. Retention of each licence requires the relevant
FDPs to be approved by the NSTA by the end of the Second Term of each
licence. The Group maintains an active dialogue with the NSTA on its activities
and seeks to ensure it can adjust any licence obligations that reasonably require
additional time to effectively execute its plans.
Joint Venture sanction, commonly referred to as the “Final Investment
Decision” (“FID”), of the Buchan redevelopment project is dependent on
successful completion of Front-End Engineering and Design activities, along
with the associated contracting programme for the ultimate execution of the
development work progamme and finalisation of the subsurface modelling
work. This allows an FID decision to be taken by the joint venture partners based
on the projected budget and perceived financial prospects for the project, set
against the anticipated risks.
The major external risk factors which are likely to influence project sanction are
long term views on oil prices and the anticipated attractiveness and stability of
the UK’s fiscal regime for the oil and gas sector.
Approval of the FDP for the redevelopment of the Buchan field, along with joint
venture partner sanction, is key to achieving future cash flows from the field.
Obtaining the necessary approvals cannot be guaranteed, although the
Company will continue to work closely with the various regulatory authorities
and its joint venture partners to ensure a robust and socially responsible
development plan is approved and implemented for the field. External
challenges to the NSTA’s approval of any FDP are possible, which may result in
Jersey Oil and Gas plc
14
judicial review, potentially resulting in substantial delays to both the project and
receipt of the remaining $20m of farm-out payments from NEO and Serica.
The Group is operating in an evolving environment where the energy transition
and decarbonisation of the wider economy will impact current and future
operations. The most immediate material matter associated with this is the
evolving industry requirements associated with the reporting of forecast
“Scope 3” emissions from new development projects, such as Buchan. The
Government is currently reviewing the applicable guidance on this issue, which
will impact the required environmental submissions that need to be made as
part of advancing approval for the Buchan project. It is anticipated that the
scale and environmental characteristics of the Buchan development project
should be in line with the requirements of the revised guidance. From a wider
and longer-term perspective, the Group’s strategy recognises that the world is
moving towards a lower-carbon energy system, while acknowledging that the
pace and specific path forward remains uncertain. This means the Group will
need to make agile business decisions in step with society.
The Group may expand its portfolio through the acquisition of growth assets in
the future to provide asset diversification. This could result in the Group facing
additional risks.
The market price of oil has seen relative stability over the last 18 months,
broadly trading within the $70 –90 range. However, recent volatility, resulting
from the ‘Trump tariffs’ has seen oil prices break out of this range and trend
briefly downwards to around $60/bbl. This price volatility is outside of the
control of the Group.
Financial Risks
Availability of industry
funding and / or access to
capital markets
Oil and gas price
movements
Long term cost overruns
and inflation
By securing the GBA farm-out deals with two strong industry partners the
Group has addressed the key near term funding risks of the business.
In addition to substantial cash payments that have been received, the Group is
carried for all pre-sanction costs associated with its remaining 20% equity
holding in the Buchan redevelopment project. Furthermore, the Group is also
fully carried through the work programme for the Buchan redevelopment
project included in the FDP budget approved by the joint venture partners and
the NSTA.
It should be noted that the Group is exposed to the risk of potential cost
overruns if the approved development budget is exceeded. This is mitigated
by agreement amongst the joint venture partners on actions regarding
contracting strategy to lock in costs and the provision of appropriate
contingencies.
Close relationships are maintained with banks and the investor community as
the Group may require additional capital to facilitate potential future
acquisitions or to meet project development cost over-runs. While no needs
currently exist the ability to flexibly access such funding is invaluable. We are
also regularly in talks with various third parties and shareholders regarding the
potential provision of capital with which to execute any future acquisitions.
Based on current budgets and forecasts, the Group is well-funded to pursue its
objectives. Budgets and cash flow projections, considering a range of cost
inflation and joint venture investment scenarios, are prepared and updated
regularly, circulated to all Directors and reviewed at Board meetings. The
Group expects to be able to operate during 2025 and beyond within its existing
cash reserves based on its current work programme, subject to there not being
any material unforeseen expenses.
Jersey Oil and Gas plc
15
The Group currently has no income exposure to oil and gas price fluctuations
since there is no production accruing to the Group from its asset portfolio.
Nevertheless, the underlying medium/long term strength of oil and gas prices
can impact on development sanction decisions and the ability to raise funds, if
required, as it can impact the value of its assets.
At present, the Group holds almost all its available cash resources in Sterling,
hence it has minimal forex exposure.
Fiscal Risks
UK North Sea tax regime
The Group is exposed to any changes in the UK tax regime, for which the terms
of the longer-term regime are subject to the conclusions of the consultation
that was launched by the Government during 2025. The Group supports the
work of the industry bodies that are engaged in influencing Government policy
to encourage investment in oil exploration and production. Much of the
engagement is centred on the underlying economic logic of seeking to ensure
that an appropriately supportive fiscal regime is in place that maximises jobs
and tax revenues while domestic hydrocarbon demand remains. In addition,
the Group engages with the appropriate industry consultants to assist in the
management of the Group’s tax planning and compliance matters.
Operational Risks
Contractually re-securing
the Western Isles FPSO
Co-venturer and other
counterparty risk
Loss of key employees
Delay and cost overruns,
including weather related
delays
HSSE incidents
Failure of third-party
services
Inherent geological risks
and uncertainties
The GBA development is operated and managed by NEO, which is a leading
UK North Sea producer with the in-house expertise, skills and knowledge, to
tackle the operational risks associated with current and planned activities,
including HSSE and the management of third-party contractors and service
suppliers.
Early in 2025, the contractual agreement to purchase the Western Isles FPSO
reached its long-stop date and consequently was terminated by Dana
Petroleum. Project sanction will require the joint venture to re-contract this
FPSO or secure another suitable development option. The FPSO is currently
owned by Dana Petroleum (77%) and NEO Energy (23%).
The Group is exposed to the usual range of co-venturer risks, given the GBA
licences are jointly owned with NEO and Serica. These include the ability of co-
venturers to finance their own share of asset expenditures, which also includes
the Group’s share of Buchan development project expenditures resulting from
the farm-out carry arrangements. Such risks should however be mitigated by
the scale and capabilities of both the co-venturers.
The Group recognises that to achieve its long-term strategy it will need to
continue to take an active approach to identify, attract and retain the skills and
expertise needed and to incentivise employees appropriately. The oil and gas
sector is a particularly expensive sector in which to operate from a personnel
perspective. The Group tries to ensure that it is a lean organisation,
appropriately staffed and that employees are working under contracts that
provide the Group with a degree of protection should people leave its
employment. Retention of key staff is aided by the award of share options and
a bonus scheme throughout the full staff structure.
Through the employment of high-quality, experienced staff and contractors,
combined with efficient and effective management overview and controls, it is
believed that the Group can mitigate many of the risks associated with its
operations.
Full operational risk cover is provided as required through the Group’s
insurance brokers and the contractual arrangements of the Buchan
Jersey Oil and Gas plc
16
development Operator, NEO. The Group monitors and evaluates all aspects of
HSSE performance including those of the Buchan Operator and has adopted
continuous improvement business practices and processes, that are monitored
and evaluated at every level of the organisation. The Group will continue to
conduct its operations, and oversee those of its asset operators, to ensure they
are carried out in a responsible manner that protects the health, safety and
security of employees, contractors and the public and minimises the impact on
the environment.
The Group is exposed to the inherent geological risks and uncertainties
associated with the oil and gas industry. Such risks can result in the volume of
hydrocarbons ultimately recovered from the Group’s assets and the associated
production profiles being different to the projected reservoir performance
characteristics. The Group undertakes thorough technical evaluations of all its
licences, including subsurface mapping and reservoir modelling. This work is
carried out by technically competent and experienced personnel, supported
where appropriate by leading technical consultants and third-party specialists.
A prudent range of input assumptions and possible outcomes are considered
within planning processes and opportunities to minimise the impact of
subsurface risks incorporated into drilling and engineering evaluations and
plans.
The foregoing risks, together with the Group’s relationships with the
Government and regulators, are discussed and monitored as part of on-going
Board review processes.
Jersey Oil and Gas plc
17
BOARD OF DIRECTORS
Les Thomas
Non-Executive Chairman
Andrew Benitz
Chief Executive Officer
Graham Forbes
Chief Financial Officer
Les Thomas has over 40 years’
experience in the oil and gas
industry in various subsurface,
engineering,
operational
and
senior management positions. He
has been instrumental in growing
a number of small and large
publicly listed businesses, through
phases of organic growth and via
asset acquisitions and corporate
transactions.
He
has
also
delivered upon the successful sale
and exit of various assets and
companies.
Les was formerly the CEO of
Ithaca Energy from 2013 to 2020
and previously served for eight
years on the Board of John Wood
Group plc, as the Chief Executive
of
its
Production
Facilities
business and the Group Director
responsible for HSE. Prior to this,
he spent 22 years with Marathon
Oil UK Limited in various locations
and roles, including four years as
European Business Unit Leader.
Les is a Non-Executive Director of
privately owned Denholm Energy
Services Ltd, as well as serving as
a
Non-Executive
Director
of
Avingtrans Plc, an AIM quoted
engineering and manufacturing
business.
Les has a BSc (1st class hons) in
Civil Engineering and a master’s
degree in petroleum engineering,
both from Heriot Watt University
in Edinburgh.
Andrew Benitz was a Founding
Director of Jersey Oil and Gas E&P
Ltd (now a subsidiary of Jersey Oil
and Gas plc) and has over 20
years’ experience in financial
markets
and
company
management.
Andrew
has
significant experience in leading
and
growing
ambitious
and
focused oil and gas businesses
and has a wealth of listed
company experience.
Prior to founding Jersey Oil and
Gas,
Andrew
was
CEO
of
Longreach Oil and Gas Ltd, a
TSX-V quoted company. He
joined Longreach in 2009 as Chief
Operating Officer when it was a
small
private
company
and
oversaw the company’s growth,
by building a significant portfolio
of oil and gas assets in Morocco.
Prior to his move into industry,
Andrew worked at Deutsche Bank
AG as an Analyst within the Oil
and Gas Investment Banking
Group, as well as within the Equity
Capital Markets team, where he
worked on a broad range of oil
and
gas
M&A
transactions,
together with equity and equity-
related financings.
Andrew is the Non-Executive
Chairman of Kalahari Copper Ltd,
an African copper exploration
business and a founder and
Director of Titan Properties SL, a
real estate business in Spain.
Andrew has a BSc (Honours) in
Commerce
from
Edinburgh
University.
Graham Forbes is a Chartered
Accountant with over 20 years’
experience in the oil and gas
industry. Graham has a wealth of
experience of managing and
financing growing private and
publicly
listed
oil
and
gas
companies, along with significant
M&A experience.
Prior to joining Jersey Oil & Gas in
2021, Graham was the CFO of
Ithaca Energy from 2010 to 2020.
During this period, Graham was
instrumental in transforming the
company
into
a
major
independent
UKCS
operator
through
both
organic
developments
and
multiple
acquisitions. He has extensive
quoted company and corporate
finance
experience,
having
completed various debt and
equity market offerings and the
US$1.2
billion
sale
and
subsequent delisting of Ithaca
Energy.
Graham has a MA(Hons) in
Economics
with
Accountancy
from Aberdeen University and
qualified
as
a
Chartered
Accountant
at
PWC
before
moving to ExxonMobil, where he
worked on a variety of operational
and acquisition-based projects.
Prior to his move to Ithaca Energy,
Graham joined First Oil Group in
2002 where, as Finance Director
and then Executive Director, he
helped develop the business into
the UK’s then largest privately
owned E&P company.
Graham
is
a
Non-Executive
Director
on
a
number
of
subsidiaries
of
Waldorf
Production Limited.
Jersey Oil and Gas plc
18
Frank Moxon
Senior Independent Director
Marcus Stanton
Non-Executive Director
(resigned – December 2024)
Frank Moxon has nearly 35 years’
experience
as
a
corporate
financier and financial adviser to
companies, ranging from start-
ups to businesses over £3 billion in
size, in a wide range of industry
sectors. For the last 26 years, he
has specialised in the oil & gas and
mining sectors, where he has
successfully
advised
growth-
focused companies on financial
structuring,
equity
and
debt
capital
raisings
and
M&A
transactions across a variety of
different strategic contexts and
geographic locations. He played a
key role in facilitating the reverse
takeover that introduced the
Company to its initial oil & gas
asset portfolio.
Frank has held several senior
management roles within the
financial services industry and, in
addition to having been Senior
Independent Director at Cove
Energy Plc, has been a director of
various oil & gas and mining
companies listed in London,
Australia and Canada. He is
currently also a non-executive
director of PHSC Plc and the East
of England Co-operative Society.
Frank has a BSc in Economics and
is a Fellow of the Energy Institute
and
an
Honorary
Chartered
Fellow of the Chartered Institute
for Securities & Investment.
Marcus Stanton has extensive
experience in the oil & gas and
banking industries and has been a
Non-Executive
Chairman
and
Non-Executive
Director
of
a
number
of
AIM
quoted
companies over the past 20 years.
These have included various oil
and gas companies, both in the
UK and overseas, covering E&P
and oil and gas services. Through
these various Board positions,
Marcus has been involved in
providing strategic guidance on
all the many complex aspects of
developing and financing growing
publicly
listed
companies
operating across the oil and gas
sector.
Marcus qualified as a Chartered
Accountant at Arthur Andersen,
where he worked in the oil and gas
division.
His
previously
held
banking
roles
include
Chief
Operating
Officer
of
Global
Capital Markets, Robert Fleming
& Co. and Director, Corporate
Finance, at Hill Samuel & Co.
Marcus also provides expert
evidence on banking transactions,
both in the UK and overseas.
Marcus is a Fellow of the Institute
of Chartered Accountants in
England
and
Wales
and
a
Chartered
Fellow
of
the
Chartered Institute for Securities
and
Investment.
Marcus
graduated from Oriel College,
Oxford.
Marcus retired from the Board of
Directors in December 2024.
Jersey Oil and Gas plc
19
CORPORATE GOVERNANCE REPORT
Jersey Oil and Gas is committed to maintaining a high standard of corporate governance and
believes that effective governance is essential to its success
As Chairman of the Board, it is my responsibility to ensure that appropriate policies and procedures are in place and
operate efficiently.
The Board of Directors of Jersey Oil and Gas believes that a sound corporate governance policy, involving a
transparent set of procedures and practices, is an essential ingredient to the Company’s success both in the medium
and long term. The application of this policy enables key decisions to be made by the Board as a whole, and for the
Company to function in a manner that considers all stakeholders, including employees, suppliers and business
partners.
The Board of Directors has overall responsibility for setting the Company’s strategic aims, defining the business
plan, strategy and managing the financial and operational resources of the business. The delivery and
implementation of the business plan and strategy resides with the Chief Executive Officer and the executive team.
At the current stage of the Company’s development, the Board believes it appropriate to work in line with the
Corporate Governance Code prepared by the Quoted Companies Alliance. The code is designed for growing
companies and provides an effective and proportionate governance framework that is reflective of our Company’s
culture and values.
Corporate Governance Framework
The Quoted Companies Alliance (QCA) Code requires the Company to apply the ten principles of corporate
governance as set out below and to publish related disclosures in the Annual Report, on the corporate governance
section of the website: www.jerseyoilandgas.com, or a combination of the two. Jersey Oil and Gas has followed the
QCA Code recommendations and is pleased to set out the information below in relation to all the principles.
1. Business Strategy
Jersey Oil and Gas 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 strategy of the business is
focused on unlocking the organic
value of our existing assets in the
GBA, combined with the pursuit of
potential acquisitions that bring
cash flow, diversity, and quality
investment opportunities into the
portfolio.
Central to the strategy is identifying
and stewarding the right assets,
where the Company can add value.
The key strategic priorities for
achieving this involve:
Leveraging the value of our core
GBA assets
Capitalising
on
the
team’s
experience and track record of
successfully
developing
and
growing oil and gas businesses
Engaging in strategic M&A
Maintaining a prudent and
disciplined financial structure
Information
on
risks
and
uncertainties that may represent
challenges to the execution of the
Company’s strategy and business
model and how such risks and
uncertainties are managed by the
Company are set out in the Risks
section of this Annual Report.
2. Shareholder Communication
The Board considers that good
communication with shareholders,
based on the mutual understanding
of objectives, is important. In
addition to the publication of the
Company’s Annual and Interim
reports, there is regular dialogue
between the Board (led by the Chief
Executive Officer) and shareholders,
as well as the issuance of the
required public announcements.
The Chief Executive Officer and the
Chief Financial Officer give regular
presentations to investors, including
one-to-one meetings with major
shareholders during the year.
An up-to-date information flow is
also maintained on the Company’s
website, which contains all press
announcements
and
financial
reports
as
well
as
investor
presentations
and
operational
information on the Company’s
activities.
The
Board
also
encourages shareholders to attend
the Annual General Meeting, at
which members of the Board are
available to answer questions and
present a summary of the year’s
activity and the corporate outlook.
The Board is kept informed of the
views of major shareholders by
Jersey Oil and Gas plc
20
briefings
from
the
Executive
Directors
and
the
Company’s
brokers. Analyses of the share
register
are
also
periodically
circulated to the Board, together
with updates from analysts.
3. Stakeholder Responsibilities
The Board takes an active role in
addressing
the
environmental,
social and governance aspects of
the business, with the Company’s
operating activities led by the
principles
of
the
UN
Global
Compact.
It is well recognised that the long-
term success of the Company is
reliant upon the efforts of the
employees of the Company and its
contractors, suppliers, regulators
and other stakeholders. As a small
and inclusive organisation, the
Company is readily aware of any
employee
practices
that
are
inconsistent with its values and
plans. The Company nevertheless
has in place many of the procedures
found in larger companies, which is
complemented by the wealth of
experience
of
the
Board
in
addressing
employee
related
matters.
The Board firmly believes that high
Health, Safety, Security and the
Environment (HSSE) standards are
crucial
to
the
Company’s
operational success. All Directors,
officers, managers, employees and
contractors are required to comply
with our HSSE Policy, which is
reviewed periodically by the Board
and, if necessary, updated and re-
issued. Our overall approach to
stakeholder
and
social
responsibilities is covered in further
detail in the Sustainability Report
contained in this Annual Report.
4. Risk Management
The Board is responsible for the
Company’s
system
of
internal
controls and for reviewing its
effectiveness.
The
system
is
designed to manage, rather than
eliminate, the risk of failure to
achieve the execution of the
Company’s strategic objectives and
business model. These controls
include Board approval for all
policies, procedures and significant
projects.
The
Board
monitors
financial
controls through: a) a budgeting
and planning process, requiring
approval by the Board; b) the receipt
of monthly management reports
covering the Company’s financial
affairs; c) internal controls as
articulated
in
the
Company’s
Financial Reporting Procedures; and
d) a review by the Audit Committee
of the draft annual and interim
reports, and the Company’s annual
budget,
before
being
recommended to the Board.
As regards non-financial risks and
opportunities, and given the current
size of the Company, it is considered
preferable for this part of the
Company’s risk management to be
the responsibility of the Board as a
whole,
rather
than
a
sub-
committee. As part of this process, a
company-wide Risk Register is
maintained and discussed at Board
meetings.
5. Board Management
The Board is the main decision-
making body of the Company, with
both formal and informal meetings
held during the year. The Board is
comprised of:
Les
Thomas,
Non-Executive
Chairman
Andrew Benitz, Chief Executive
Officer
Graham Forbes, Chief Financial
Officer
Frank
Moxon,
Senior
Independent Director
Marcus Stanton, Non-Executive
Director (retired in December
2024)
All the Executive Directors are
employed under service contracts
and work full time for the Company.
The Non-Executive Directors work
part time, the extent of which varies
depending on the ongoing activities
of the business. The Board considers
that all the Non-Executive Directors
are independent in character and
judgement.
They
have
shareholdings (acquired with their
own funds) and a limited number of
share options (granted as part of the
annual remuneration process and
approved by the Board), and the
Board considers that this does not
impair their judgement and aligns
them well with the interests of
shareholders.
The Board and its Committees
receive appropriate and timely
information prior to each meeting.
A formal agenda is produced for
each
meeting
and
Board
Committee papers are distributed
before meetings take place. Specific
actions arising from meetings are
agreed by the Board or relevant
committee and then followed up by
management. All Directors spend
such time as is necessary to
effectively carry out their roles and
Directors have access to advice or
services needed to enable them to
carry out their roles and duties. In
addition, at the end of each month
the Chief Executive Officer briefs
the Non-Executive Directors on
current developments.
The Board considers and aspires to
achieve increased diversity where
possible
when
making
new
appointments, whilst recognising
the practical constraints of a small,
focused Company.
The QCA Code highlights that Non-
Executive Directors must maintain
their
independence
from
the
Executive Directors of the Board
and where their term extends
beyond 9 years the judgement that
this independence remains should
be set out. During 2025 Frank
Moxon will reach his nine-year
anniversary of service with JOG. The
Board believes that Frank continues
to
display
an
attitude
of
Jersey Oil and Gas plc
21
independence of character and
judgement in his role. With the
Chairman and CFO both joining the
company within the last four years
the Board remains refreshed and
relationships between the members
remain appropriately independent.
In addition, with the departure of
Marcus Stanton at the end of 2024,
the Board has chosen not to replace
Marcus and thus reduce the size and
cost of the Board while there is a
slowdown in Buchan development
activities. Given this, a further
change to the composition of the
Board is not considered to be in the
best interests of the Group at this
time.
The Board remains of the view that
Board continuity through the FDP
approval phase of the GBA has
substantial value and once achieved
the future growth trajectory and
direction of the business will best
determine the appropriate future
Board composition. At this stage of
growth in the business it is
appropriate for JOG to retain a small
Board that is nimble and capable of
executing our strategic ambitions in
a timely manner.
6. Board Experience
The Board seeks to maintain an
appropriate mix of experience, skills,
personal qualities and capabilities in
order to deliver the strategy of the
Company. The size of the Board is
considered to be sufficient to
provide the necessary experience
and perspective to its decision-
making process given the size and
nature of the Company.
The skills and experience of the
Board are set out in this Annual
Report and are considered by the
Board
as
representing
an
appropriate range of capabilities
needed to deliver the strategy of the
Company for the benefit of its
shareholders over the medium to
long term. The experience and
knowledge of each of the Directors,
and the steps taken to keep these
skill sets up to date, gives them the
ability to constructively challenge
strategy
and
to
scrutinise
performance.
7. Board Performance
The Board has determined that it
shall itself be responsible for
assessing the effectiveness and
contributions of the Board as a
whole,
its
committees
and
individual Directors. The Directors
believe that the size of the Board
allows for open discussion, with an
evaluation of Board performance
being undertaken on an annual or an
ad
hoc
basis,
as
considered
appropriate. The performance of
the committees is also evaluated by
the Chairman of the Board.
Succession planning is reviewed
periodically both at the Board level
and
at
the
level
of
senior
management. This is undertaken
from
the
perspective
of
the
development of the Board as a
whole as the business develops and
in the scenario of any unanticipated
departures.
8. Corporate Culture
The Board believes that the long-
term success of the Company is
underpinned by a corporate culture
that is based on ethical values and
behaviours. Many of these are
highlighted
in
an
extensive
employee Staff Handbook, which
draws together all the Company’s
rules, policies and procedures.
Those values, which the Company
seeks to instil throughout the
business, include integrity, respect,
honesty and transparency and are
led by the behavioural example of
individual
Board
members,
particularly the Chief Executive
Officer and the Chief Financial
Officer.
The Company also operates a well-
defined organisational structure
through which it seeks to determine
that
the
ethical
values
and
behaviours are recognised and
respected, in addition to which
every employee is aware of the
established
whistleblowing
procedures. These include a formal
Anti-Bribery and Corruption Policy
under which the Company is
committed to acting legally, fairly
and ethically in all its activities and
engagements. The Company does
not tolerate bribery and corruption
in any of its forms, nor will it tolerate
it in those with whom it does
business.
9. Governance structures
The
Company
maintains
appropriate governance structures
and processes according to its size
and complexity. The Company is
committed
to
reviewing
its
corporate governance policies and
procedures to ensure they remain
appropriate as it continues to grow
and in response to any changes in
regulatory
and
other
relevant
guidance.
The Board is responsible for: a) the
overall direction and strategy of the
business;
b)
monitoring
performance; c) understanding risk;
and d) reviewing controls. It is
collectively responsible for the
success of the Company.
The Chairman’s role is part-time,
and he is a Non-Executive Director.
His
key
responsibility
is
the
leadership of the Board, and this is
primarily effected through regular
Board meetings as well as contact
with other Board members and
interested parties between Board
meetings. The Chairman is also
responsible for the establishment of
sound
corporate
governance
principles and practices.
The Chief Executive Officer is
responsible for the day-to-day
running
of
the
Company’s
operations and for implementing
the strategy agreed by the Board, in
conjunction
with
the
other
members of the executive team.
The Chief Financial Officer is
responsible for the Company’s
finances, in addition to other
aspects of the business, including
Jersey Oil and Gas plc
22
risk
management,
property
matters, insurance and human
resources.
There is a formal schedule of
matters specifically reserved for the
Board, in addition to the formal
matters required to be considered
by the Board under the Companies
Act. This list includes matters
relating to a) strategy and policy; b)
acquisition
and
divestment
proposals; c) approval of major
capital
investments;
d)
risk
management policy; e) proposals
from the Audit Committee, the
Remuneration Committee and the
Nomination
Committee;
f)
significant financing matters; and g)
statutory reporting to shareholders.
At formal meetings of the Board an
agenda is prepared by the Chairman
which includes presentations by
each of the Executive Directors
together
with
reports
and
recommendations
from
the
relevant sub-committees of the
Board. The Board has established
four Committees – the Audit
Committee,
the
Remuneration
Committee,
Nominations
Committee and the Sustainability
Committee.
10. Stakeholder Communications
The Board considers that good
communication with shareholders
and other relevant stakeholders,
based on the mutual understanding
of objectives, is important. The
Company maintains an ongoing
dialogue with shareholders as set
out in Principle 2, in seeking to
understand and meet shareholders
needs and expectations. This is
achieved
through
direct
engagement and meetings with
shareholders, as well as through
communications such as the Annual
Report,
the
Interim
Report,
Corporate
Presentations,
Regulatory News Releases, the
Company’s’ website and the Annual
General Meeting.
Regarding industry stakeholders,
the
Company
holds
regular
meetings with all the key regulatory
authorities, including the North Sea
Transition Authority, the Health and
Safety Executive and the Offshore
Petroleum
Regulator
for
Environment
and
Decommissioning. The
Company
also actively engages with industry
bodies such as Offshore Energies
UK, its peers in the oil and gas
operator community and the wider
supply chain that directly serves the
industry, and those businesses
involved in supporting and leading
the energy transition.
Jersey Oil and Gas plc
23
Board Committees
The Group operates an Audit Committee, a Remuneration Committee, a Nomination Committee and a newly
formed Sustainability Committee.
Audit Committee
Les Thomas (Chairman) & Frank Moxon
Under its terms of reference, the Audit Committee is required to meet at least twice a year, at which executive
directors may attend by invitation, and its responsibilities include:
Monitoring the independence and objectivity of the External Auditors;
Reviewing and approving the External Auditor’s terms of engagement, scope of work, fees, the findings
arising from the external audit work and external audit performance;
Monitoring the integrity of the Group’s published financial information;
Reviewing the risk identification and risk management processes of the Group; and
Reviewing the Group’s procedures to prevent bribery and corruption in addition to ensuring that appropriate
whistleblowing arrangements are in place.
Due to the current size of the business, it is not considered appropriate to have an internal audit function.
Remuneration Committee
Frank Moxon (Chairman) & Les Thomas
Under its terms of reference, it is required to meet at least twice a year, and its responsibilities include:
Determining and agreeing with the Board the broad policy for the remuneration of the Executive Directors;
Determine the individual remuneration package of each Executive Director;
Review all share incentive plans; and
Recommending option grants for the Executive Directors and other employees, as considered appropriate.
No Director is involved in deciding their own remuneration. The Non-Executive Directors’ remuneration is
determined by the Executive Directors.
Nomination Committee
Frank Moxon (Chairman) & Les Thomas
Under its terms of reference, it is required to meet at least twice a year, and its responsibilities include:
Evaluating the balance of skills, experience and diversity on the Board; and
Approving candidates for Board vacancies, save for the appointment of the Chairman of the Board or the
Chief Executive Officer, which are matters for the whole Board.
Due to the size of the Group, no meetings of the Nomination Committee were held during 2024 as its functions
have been properly carried out as part of the work of the Remuneration Committee and the Board.
Sustainability Committee
Les Thomas (Chairman) & Frank Moxon
Under its terms of reference, it is required to meet at least once a year, and its responsibilities include:
Reviewing and assessing the company's current sustainability practices and policies;
Reviewing the regulatory and policy developments designed to tackle climate change, as well as the
requirements and initiatives set for the industry in response to decarbonisation targets and supporting the
energy transition and route to net zero;
Identifying and addressing climate-related risks associated with the company's operations; and
Reviewing and monitoring the Company's obligations and plans for climate-related financial disclosures.
The Sustainability Committee was formed in March 2024 and meets at least once a year
Jersey Oil and Gas plc
24
2024 Board and Committee Meeting Attendance
Board
Meetings
Audit
Committee
Remuneration
Committee
Nominations
Committee
Sustainability
Committee**
Held Attended
Held Attended
Held Attended
Held Attended
Held Attended
Non-Executive
Directors
L J Thomas
4
4
3
3
2
2
-
-
1
1
F H Moxon
4
4
3
3
2
2
-
-
1
1
M J Stanton (retired
31 Dec 2024)
4
4
3
3
2
2
-
-
1
1
Executive Directors
J A Benitz
4
4
3*
3*
-
-
-
-
1
1
G A Forbes
4
4
3*
3*
-
-
-
-
1
0
* By invitation
** Formed March 2024
Les Thomas,
Non-Executive Chairman
27 May 2025
Jersey Oil and Gas plc
25
ENVIRONMENT, SOCIAL AND GOVERANANCE REPORT
We are committed to conducting our operations safely, protecting the natural environment and
actively participating in the energy transition
Our strategic focus on developing
homegrown energy resources sits in
tandem with our pursuit of doing so
in a sustainable manner. We are
seeking to create long term value
from the natural resources that are
readily available to us, contributing
to society’s energy needs and
pursuing oil and gas development
solutions
that
minimise
our
environmental footprint.
We take global climate challenges
seriously and are committed to
conducting our activities, whether
directly or through our joint venture
partners, in accordance with the
highest environmental, social and
governance standards.
UN Global Compact
Sustainability Development
Goals
We recognise that responsible
behaviour, which creates value
while protecting the environment,
and contributing to society, is
central to our licence to operate.
Our approach to sustainability
therefore seeks to ensure the
business
aligns
with
the
international reporting frameworks
of the UN Global Compact (UNGC).
The strategy of the UNGC is to
encourage businesses to recognise
the UN Sustainable Development
Goals (SDGs) as defining those key
aspects which can be used by a
company to direct its corporate and
operational activities while adhering
to the 10 UNGC principles.
Using
an
industry-standard
methodology, we have undertaken
a review of the 17 SDG’s to
determine and prioritise those goals
most relevant to our business
activities. These are presented
below.
SDG 3: Sustainable development cannot be achieved unless everyone’s primary health needs are met.
The health and safety of our employees and contractors is central to the way in which we conduct
business and is our number one priority. We work to ensure all our operations and activities are
performed safely, using robust policies and systems with the aim of achieving zero harm in the
workplace
SDG 5: Achieve gender equality and empower all women and girls.
We seek to maintain a high performing, productive and engaged organisation and adopt policies
to ensuring non-discrimination and gender equality
SDG 7: Deliver access to affordable, reliable, sustainable and modern energy for all.
Through the development of homegrown oil and gas resources, we contribute to the availability of
affordable energy and seek to do this in tandem with supporting the energy transition and the
Government’s target for increasing investment in renewable energy production and the
achievement of carbon net zero by 2050
SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment
and decent work for all.
We contribute to economic growth in the UK through our business activities, including
employment, support for the local supply chain and the transparent payment of taxes
SDG 13: Prioritising the climate.
Protection of the environment is part of our license to operate. As part of this, we recognise our
responsibility to reduce greenhouse gas emissions and in doing so support the energy transition
SDG 14: Protecting biodiversity around our operations.
We seek to minimise the impact to flora and fauna and conserve biodiversity in ecosystems where
we operate, carrying out environmental impact assessments and monitoring campaigns
SDG 16: Responsible business practices contribute to social and economic stability.
We strive to ensure that all activities throughout the business are conducted to the highest
standards in ethics, integrity and transparency
Jersey Oil and Gas plc
26
Sustainability in the Buchan
Redevelopment Project
The Company’s principal activity is
the Buchan redevelopment project.
Working with our joint venture
partners, NEO and Serica, we
actively participate and contribute
to the strategic decision-making
process for the project, ensuring
that sustainability-related decisions
reflect our policies and beliefs. The
key activities in this area are
described in the following sections.
HSEQ Planning
The Company considers it is
necessary to set out how high
standards
of
Health,
Safety,
Environmental
and
Quality
(“HSEQ”)
performance
will
be
achieved throughout the Buchan
development
project
lifecycle.
Organisations that do not prioritise
HSEQ performance do not attract
investment or talented individuals
to support the business. NEO, in its
capacity as the Buchan Operator, is
an established North Sea business
that has existing HSEQ policies and
procedures
that
are
being
implemented on the project. Risk
assessments are conducted for all
activities,
with
the
aim
of
eliminating risks where practicable,
and
establishing
appropriate
control and mitigation measures for
residual risks. The joint venture
partners
monitor
HSEQ
performance through a variety of
metrics, each designed to reflect the
risks associated with the respective
phase
of
activity,
and
with
management reviews conducted on
a regular basis. In accordance with
the Joint Operating Agreement that
governs the partnership, the joint
venture partners have the right to
conduct audits of the Operator’s
performance as deemed necessary
by management.
Climate Action
Prior to the completion of the farm-
outs and transfer of Operatorship of
the GBA licences to NEO, the
Company undertook a detailed
assessment
of
potential
development concept solutions for
Buchan and the wider resources in
the GBA. This evaluation was
aligned to the central obligations of
the NSTA’s strategy, namely, to take
the necessary steps to:
Ensure that the maximum value
of economically recoverable
petroleum is recovered from the
strata beneath relevant UK
waters; and, in doing so,
Take appropriate steps to assist
the Secretary of State in
meeting the net zero target,
including the reduction, as far as
reasonable
in
the
circumstances, of greenhouse
gas emissions from sources such
as flaring and venting and power
generation,
and
supporting
carbon capture and storage
projects.
Accordingly,
studies
were
performed to evaluate the lifecycle
emissions resulting from each
potential Buchan field development
concept, considering
both the
construction / installation phase and
production
phase.
It
was
determined that redeployment of
the existing Western Isles FPSO was
the solution that resulted in the
lowest lifecycle emissions, as it:
Minimises energy consumption
by reducing the use of new raw
materials during construction
when compared with other
development solutions
Through the re-use of existing
infrastructure, it minimises the
onshore construction scope and
hence minimises the associated
energy usage associated with
these activities
Minimises emissions associated
with diesel usage to power
installation vessels as it has the
lowest
number
of
vessel
activities during the offshore
installation phase
Use of the vessel would provide
a solution that eliminates the
need for routine flaring and
venting
during
normal
operations as the FPSO has
existing
flare
gas
recovery
systems,
regarded
as
Best
Available Technology
It would also reduce nitrous
oxide emissions, which are
known to contribute to the
greenhouse
effect
and
negatively impact air quality, as
the selected FPSO has existing
Dry-Low-Emission
power
generators, regarded as Best
Available Technology.
The results of these evaluations
were presented to the NSTA as part
of a Concept Select Report that was
submitted to support the selection
of the preferred GBA development
solution. Concept Select Reports
are submitted by licence operators
as
part
of
the
regulator’s
requirements for planning and
consenting to field developments
on the UK Continental Shelf. Based
on the information provided the
NSTA issued a letter of no objection
to the Buchan field licencees
preparing an FDP based on the
redevelopment solution set out in
the report.
Emissions Reduction
Central to the license to operate
obligations set out in the NSTA’s
strategic plan is the requirement for
UK operators to undertake their
upstream operations in line with the
NSTA Stewardship Expectations
(SE)
including
Stewardship
Expectation 11 – Net Zero (SE11).
SE11 imposes that for each UK
offshore operated asset or hub, a
Greenhouse
Gas
Emissions
Reduction Action Plan (ERAP) is
developed,
implemented,
and
maintained.
The
Buchan
redevelopment
project
Environment Statement (issued in
January
2024
for
public
consultation) confirms that an ERAP
will be prepared during the course
of the project for implementation in
the production phase of activities.
Jersey Oil and Gas plc
27
Importantly, the planned Buchan
redevelopment solution is aligned
to the NSTA’s strategic objectives
requiring new developments with a
first production date before 1
January 2030 to be at a minimum
delivered
to
come
online
‘electrification
ready’.
These
requirements were recognised by
the Buchan joint venture during the
concept select phase of activities
and
the
chosen
development
concept, along with its associated
costings, are fully aligned to this
emissions reduction strategy.
The Buchan field partners are
committed
to
the
future
electrification of the planned FPSO
redeployment and are currently
working
towards
ultimately
connecting the vessel to one of the
future
offshore
wind
power
developments
that
are
being
planned under the terms of the UK
Government’s
Innovation
and
Targeted Oil & Gas (INTOG)
licencing process. The switch to
import power will utilise well proven
technology
that
has
been
successfully deployed in Norway.
Engineering studies have been
conducted as part of the Front-End
Engineering
Design
phase
of
activities
to
identify
the
modifications required to the FPSO
to facilitate this switchover.
Electrification of the FPSO, for
which import power is anticipated
to be available from offshore wind
sources around 2030, will result in a
reduction in emissions from power
generation, leading to a forecast
carbon intensity lower than industry
average performance and at least
two times cleaner (mid case)
compared to the average global
well-to-refinery intensity of crude
oils. Future connection to a new
offshore windfarm would deliver a
solution that contributes to the
decarbonisation of both the FPSO
and the UK grid, supporting the UK
Government and NSTA in reaching
its net zero target, whilst at the
same time delivering important
domestic energy supply.
Life Below Water
We recognise the importance of
protecting biodiversity in the seas
around our operations, and our
commitment
to
this
is
demonstrated through the selected
concept
for
the
Buchan
redevelopment
project.
The
redeployed FPSO solution offers the
following key benefits compared to
other
potential
development
solutions:
It has the lowest number of
vessel
activities
during
the
offshore
installation
phase,
which
helps
to
minimise
underwater noise pollution
It
minimises
overboard
discharge of oil in water through
the re-injection of produced
water into the reservoir for
pressure maintenance. Should
any overboard discharge of
produced water be required, the
Western Isles FPSO has existing
systems designed to reduce oil
content in produced water to a
level that meets regulatory
discharge limits. Environmental
studies
to
support
the
Environment Statement show
that discharges at these limits do
not result in any measurable
deterioration of water quality in
the area local to the FPSO.
To maximise production from the
Buchan field it will be necessary to
utilise certain chemicals during the
drilling and production phases.
Once mixed with produced fluids
there is the potential for discharge
to sea of these chemicals in diluted
form through the discharge of
produced water. The plan to re-
inject produced water from the
Buchan field into the reservoir will
minimise such potential discharges.
In addition, as set out in the
Environment Statement, a chemical
selection process will be followed
that aims to select chemicals with
the lowest environmental impact in
accordance
with
the Offshore
Chemical
Regulations
and
Oil
Pollution Prevention and Control
Regulations.
Risk Management
In addition to the Company-wide
processes used to monitor and
manage corporate and ESG risks,
specific risk management processes
are also used for the Buchan project.
The
ability
to
manage
risk
effectively is essential for realising
the ultimate project execution
schedule and in turn the overall
value of the project. A project-
specific risk management process
has been implemented and is
actively monitored and managed by
the joint venture partners to ensure
that risks that could potentially
jeopardise the Project Execution
Plan
can
be
identified
and
prioritised for prevention, control
and mitigation. The project risk
registers are subject to monthly
review.
Jersey Oil and Gas plc
28
Recommendations of the Task Force for Climate-related Financial Disclosures (”TCFD”)
Whilst the Group is not required to and does not comply with the recommendations of the TCFD, it has applied the
principles noted below in developing a roadmap to compliance by 31 December 2025.
The TCFD framework is designed to identify climate-related risks and opportunities to aid companies’ and investors’
understanding of the financial implications of transitioning to a lower-carbon economy and the changes in physical
risks associated with climate change. The TCFD disclosures are structured around the four pillars of Governance,
Strategy, Risk Management and Metrics & Targets, with eleven recommended disclosures. Scenario analysis is
recommended as part of the TCFD process to identify the range of risks and opportunities a company may face
across different climate scenarios.
TCFD Index Table
Recommendation
Description
Details
Governance:
Disclose the
organisation’s
governance around
climate related risks
and opportunities.
Describe
the
Board’s
oversight of climate related
risks and opportunities.
The Board recognises climate change to be a significant
risk to both the Company and the wider oil and gas
industry, with potentially material implications. Building
resilience to such risks and ensuring the business
maintains its social licence to operate, by actively playing
a responsible role in the on-going energy transition, is
necessary for long-term success of the Company.
Climate-related
governance
is
ultimately
the
responsibility of the Board. Corporate and ESG risks are
cyclically reviewed by the management team and
discussed with the Board. The results of such reviews are
incorporated into the strategic decision-making process
of the Company.
Although the business does not currently produce
hydrocarbons, it seeks to ensure that the activities it is
evaluating and progressing take into account the
appropriate
environmental
considerations
and
opportunities to mitigate and minimise the associated
risks.
Jersey Oil and Gas plc
29
Describe
management’s
role
in
assessing
and
managing climate-related
risks and opportunities.
Due to the relatively small number of employees within
the Company, there is not a management committee
solely appointed for the management of climate risks and
opportunities. However, in 2024 a Sustainability Sub-
Committee to the Board was established to facilitate more
detailed oversight of the strategic and operational
management of environmental issues facing the
Company and the wider industry, including the evolution
of regulatory requirements.
Strategy:
Disclose the actual
and potential
impacts of climate
related risks and
opportunities on the
organisation’s
business, strategy
and financial
planning where
such information is
material.
Describe
the
climate
related
risks
and
opportunities
the
organisation has identified
over the short, medium and
long term.
The Company’s ESG Risk Register includes assessment
of the following climate-related risks:
1. Stricter decarbonisation agenda pushed by
regulators and policymakers resulting in:
Increases in taxes related to business activities;
Changes in policies, laws and regulations;
Bias against energy-related investment;
Incurring high costs arising from emission
reduction from hydrocarbon installations.
2. Technology developments resulting in reduced
demand for hydrocarbons, for example:
Reduction in cost of renewables and long-term
energy storage;
Improvements in the efficiency of energy users;
Reduced appetite for investment in the oil and gas
industry caused by evolving investment mandates
relating to the natural resources sector.
Describe the impact of
climate-related risks and
opportunities
on
the
organisation’s
business,
strategy
and
financial
planning.
The Group currently has limited direct exposure to
climate-related risks since it has no oil and gas production
operations and maintains only small office facilities in
Jersey, London and Aberdeen. The Directors support
climate change mitigation and the energy transition
process under which oil and gas production will continue
to meet UK energy demand not satisfied by renewables,
while providing taxation and other revenues to support the
development and roll-out of new renewable energy
technologies. The Group is therefore working closely with
its GBA joint venture partners to develop oil and gas
production facilities that will incorporate the lowest
carbon footprint in the UK North Sea.
Nevertheless, some risks may have an impact in the short
and
medium
term.
For
example,
changes
in
environmental levies and taxes, leading to a near term
impact on the Company’s activities. Other risks, such as
the effect of technological developments on the demand
for hydrocarbons, may have an impact in the longer term.
The Board readily appreciates that climate-related risks
have the potential to significantly affect the activities of
the Company. The risk reviews that are undertaken by the
Company and reported to the Board are designed to
routinely monitor and review the business landscape to
determine those aspects of the evolving regulatory and
taxation regime that may have a significant impact, and
the mitigation measures the Company can take.
Jersey Oil and Gas plc
30
Describe the resilience of
the organisation’s strategy,
taking into consideration
different
climate-related
scenarios, including a 2°C
or lower scenario.
A
transparent
and
auditable
approach
to
risk
management at both strategic and operational levels
helps make the business resilient to change, including
climate change scenarios which affect UK and
international energy markets. The Company’s activities in
the UKCS are as resilient to climate change scenarios as
other companies engaged in offshore oil and gas
activities, insofar as achieving a ‘Low Carbon Future’ (i.e. a
2°C or lower scenario) may be contingent on restricting
the longer-term activities of existing oil and gas
companies e.g. by changing taxation or carbon-credit
trading arrangements. On the other hand, a ‘High Carbon
Future’ (i.e. greater than a 2°C scenario) places further
pressure on energy companies to pursue more aggressive
net zero solutions. Therefore, the Company’s strategy of
taking an engaged role in energy transition assists in
making the business’ strategy resilient to either scenario.
It places responsibility on both the Board and
management team to consider and assess ESG-related
issues and formally record their effect for relevant
stakeholders.
At the centre of the Company’s strategy for the
redevelopment of the Buchan oil field is a future
connection of the infrastructure that is to be installed for
the field to one of the nearby planned offshore wind power
developments that are currently being progressed by
specialist wind developers. By making the Buchan
facilities electrification-ready ahead of deployment to the
field and engaging with the wind power developers, the
joint venture partners can play an active role in helping to
facilitate the regulatory imperative for oil and gas
companies to participate in the energy transition and
contribute towards meeting the sector’s net zero
objectives.
Risk Management:
Disclose how the
organisation
identifies, assesses
and manages
climate related
risks.
Describe the organisation’s
processes for identifying
and
assessing
climate
related risks.
The Company’s approach to identifying, assessing, and
managing climate-related risks is integrated into the
overall risk management assessments of the business and
guided by principles of transparency and responsible
stakeholder engagement.
Describe the organisation’s
processes for managing
climate related risks.
The Board of Directors provides oversight of climate-
related risks as part of its broader risk management
strategy and acts to ensure that they receive appropriate
attention at the highest levels of governance. A new
Sustainability sub-committee of the Board that is
dedicated to overseeing the company's sustainability
efforts, with a particular focus on climate-related risks and
TCFD compliance, was established in 2024. The
committee is responsible for:
Reviewing and assessing the company's current
sustainability practices and policies.
Reviewing the regulatory and policy developments
designed to tackle climate change, as well as the
requirements and initiatives set for the industry in
Jersey Oil and Gas plc
31
response to decarbonisation targets and supporting
the energy transition and route to net zero.
Identifying and addressing climate-related risks
associated with the Company's operations.
Reviewing and monitoring the Company's obligations
and plans for climate-related financial disclosures.
Describe how processes for
identifying, assessing and
managing climate related
risks are integrated into the
organisation’s overall risk
management.
Risk reviews, including climate-related risks, are carried
out by the Company on a cyclical basis. Given the status
and size of the Company, such reviews are mostly focused
on the strategic aspects of the business and future plans
for the GBA.
Metrics and
Targets:
Disclose the metrics
and targets used to
assess and manage
relevant climate
related risks and
opportunities where
such information is
material.
Disclose the metrics and
targets used to assess and
manage relevant climate-
related
risks
and
opportunities.
The Company compiles emissions data for its day-to-day
office activities (e.g. electricity usage), which represent
Scope 2 emissions. These are minimal given the size of
the business.
Predicted full-cycle emissions have been assessed as part
of defining the preferred development solution for the
Buchan project and were set out in the Environmental
Statement that was submitted to the Regulator in early
2024. Emissions were estimated for each potential
development concept, from raw material manufacturing
through to fabrication, facilities installation and operation.
Emissions were estimated using publicly available data to
enable transparency and auditability, with the emissions
representing a mixture of Scope 1-3. The selected
development concept has been shown to represent the
lowest lifecycle emissions of all the technically feasible
development concepts.
Disclose Scope 1, Scope 2,
and, if appropriate, Scope 3
greenhouse
gas
(GHG)
emissions, and the related
risks.
Given our asset portfolio, the only recordable emissions
produced by the Company at this time relate to office
electricity consumption. The Company’s emissions in
2024 were 1,901kgCO2e (2023: 2,457kg/CO2e), which
represents a reduction of approx. 23% compared to the
previous year.
Describe the targets used
by the organisation to
manage climate related
risks and opportunities and
performance
against
targets
The most significant contribution the Company can make
to minimising emissions and supporting the energy
transition, while contributing to society’s energy needs, is
by focusing on oil and gas development solutions with a
minimal environmental footprint. This has been a core
component of the GBA development strategy and
selection criteria for the preferred Buchan redevelopment
project.
Jersey Oil and Gas plc
32
DIRECTORS’ REPORT
The Directors present their report
together with the audited Group
and Company financial statements
for the year ended 31 December
2024.
Annual General Meeting
The Annual General Meeting will be
held on 27th June 2025 as stated in
the Notice of Meeting.
Results and Dividends
The Group’s loss for the year was
£3.5m (2023: loss of £5.6m). The
Directors do not recommend the
payment of a dividend (2023: Nil).
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
financial statements. The Group has
cash
reserves
following
the
successful farm-out of the GBA
licences and receipt of initial funds
resulting from the two transactions
with NEO and Serica. The Group
now has a fully funded 20% interest
in
the
on-going
Buchan
redevelopment project. Other work
that the Group is undertaking in
respect of the GBA licenses and
surrounding areas is modest relative
to its current cash reserves. 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
financial
statements. Even in a scenario
where the Buchan development did
not progress for any unforeseen
reason and any future instalment
payments were not realised the
Group already has in place a cost
structure and expenditure profile
that
enables
the
business
to
continue 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 the farm-outs 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
consolidated financial statements.
Financial Instruments
The Group’s principal financial
instruments
comprise
cash
balances, short-term deposits and
receivables or payables that arise
through the normal course of
business. The Group does not have
any derivative financial instruments.
The financial risk management of
the Group is disclosed in note 4 of
the
Consolidated
Financial
Statements.
Board Committees
Information
on
the
Audit,
Remuneration,
Nomination
and
Sustainability
Committees
is
included
in
the
Corporate
Governance section, the Audit
Committee
Report
and
the
Remuneration Report contained in
this Annual Report.
Disclosure of Information to the
Auditors
Each of the Directors at the date of
approval of this report confirms
that:
(1) So far as the Director is aware,
there
is
no
relevant
audit
information of which the Group’s
auditors are unaware; and
(2) Each Director has taken all the
steps that they ought to have
taken as a Director to make
themselves aware of any relevant
audit
information
and
to
establish
that
the
Group’s
auditors are aware of that
information.
This confirmation is given and
should be interpreted in accordance
with the provisions of s418 of the
Companies Act 2006.
Directors’ Third-Party Indemnity
Provisions
During the year and to the date of
approval
of
the
financial
statements, the Group maintained
indemnity insurance for its Directors
and Officers against liability in
respect of proceedings brought by
third parties, subject to the terms
and conditions of the Companies
Act 2006.
Employees
The
business
depends
upon
maintaining a highly qualified and
well-motivated workforce and every
effort is made to achieve a common
awareness of the financial and
economic
factors
affecting
performance.
The
Group
is
committed to being an equal
opportunities
employer
and
engages employees with a broad
range of skills and backgrounds.
Independent Auditors
A resolution to reappoint BDO LLP
as Auditors will be proposed at the
forthcoming
Annual
General
Meeting at a fee to be agreed in due
course by the Audit Committee and
the Directors.
Nominated Adviser & Stockbrokers
The Group’s Nominated Adviser is
Strand Hanson Limited, and its Joint
Brokers are Zeus Capital Ltd and
Cavendish Financial plc.
Share Capital
At 31 December 2024, 32,667,627
(2023: 32,665,960) ordinary shares
of 1p each were issued and fully
paid. Each ordinary share carries
one vote.
Post Balance Sheet Events
See note 23 to the financial
statements.
Jersey Oil and Gas plc
33
Directors’ Interests
The beneficial and other interests of the Directors holding office during the year and their families in the shares of
the Company at 31 December 2024 were:
1p Ordinary Shares
As at 31 Dec. 2024
As at 31 Dec. 2023
Shares
Vested Options
Shares
Vested Options
L J Thomas
43,000
65,000
33,000
25,000
M J Stanton (resigned
December 2024)
116,411
46,667
112,411
83,333
F Moxon
87,026
41,667
87,026
55,000
J A Benitz
763,764
603,333
702,176
420,000
G A Forbes
-
483,333
-
400,000
Substantial Shareholders
At 31 December 2024, notification had been received by
the Company of the following who had a disclosable
interest in 3% or more of the nominal value of the
ordinary share capital of the Company:
Hargreaves Lansdown, Stockbrokers
15.71%
Interactive Investor
8.68%
Ravenscroft
7.56%
Mr J Baldwin
6.39%
AJ Bell, stockbrokers
4.95%
HSDL, stockbrokers
4.42%
Barclays Smart Investor
4.30%
UBS collateral account
3.66%
Janus Henderson Investors
3.61%
Mr S Inayat
3.48%
Mr Ronald Lansdell
3.27%
None of the current directors hold 3% or more of the
nominal value of the ordinary share capital of the
company.
Up to date details and changes in substantial
shareholders are contained on the Company’s website
(www.jerseyoilandgas.com).
On behalf of the Board
Graham Forbes
Chief Financial Officer
27 May 2025
Jersey Oil and Gas plc
34
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF
THE FINANCIAL STATEMENTS
The directors are responsible for
preparing the annual report and the
financial statements in accordance
with applicable law and regulations.
Company law requires the directors
to prepare financial statements for
each financial year. Under that law
the directors are required to prepare
the Group financial statements in
accordance
with
UK
adopted
international accounting standards
and
the
company
financial
statements in accordance with
United
Kingdom
Generally
Accepted
Accounting
Practice
(United
Kingdom
Accounting
Standards and applicable law).
Under company law the directors
must not approve the financial
statements unless they are satisfied
that they give a true and fair view of
the situation of the Group and
company and of the profit or loss of
the Group for that period.
In
preparing
these
financial
statements,
the
directors
are
required to:
Select
suitable
accounting
policies and then apply them
consistently;
Make
judgements
and
accounting estimates that are
reasonable and prudent;
State whether they have been
prepared in accordance with UK
adopted
international
accounting standards subject to
any
material
departures
disclosed and explained in the
financial statements;
Prepare the financial statements
on the going concern basis
unless it is inappropriate to
presume that the Group and the
company
will
continue
in
business.
The directors are responsible for
keeping
adequate
accounting
records that are sufficient to show
and
explain
the
company’s
transactions
and disclose with
reasonable accuracy at any time the
financial position of the company
and enable them to ensure that the
financial statements comply with
the requirements of the Companies
Act 2006. They are also responsible
for safeguarding the assets of the
company and hence for taking
reasonable steps for the prevention
and detection of fraud and other
irregularities.
Website Publication
The Directors are responsible for
ensuring the Annual Report and the
financial statements are made
available on a website. Financial
statements are published on the
company's website in accordance
with legislation in the United
Kingdom governing the preparation
and dissemination of financial
statements, which may vary from
legislation in other jurisdictions. The
maintenance and integrity of the
Company's
website
is
the
responsibility of the directors. The
Directors'
responsibility
also
extends to the ongoing integrity of
the financial statements contained
therein.
Graham Forbes
Chief Financial Officer
27 May 2025
Jersey Oil and Gas plc
35
AUDIT COMMITTEE REPORT
Introduction
This Audit Committee Report has
been
prepared
by
the
Audit
Committee and approved by the
Board.
Membership & Meetings Held
The Audit Committee was chaired
by Marcus Stanton in 2024, and its
other members are Les Thomas and
Frank Moxon (both Non-Executive
Directors). The Committee formally
met three times during 2024, linked
both to events in the Company’s
financial calendar and to certain ad
hoc matters. In addition, an informal
meeting of the committee was held
in connection with the 2024 Annual
Report and Accounts (financial
statements), a few days before a
formal meeting to discuss the same.
To
encourage
a
greater
understanding and involvement in
the work of the Audit Committee,
the Chief Executive Officer, the
Chief Financial Officer and the Chief
Commercial
Officer
attended
certain of these meetings. The
external audit partner also attended
the meeting held in connection with
the Company’s 2024 Report and
Accounts.
Role of the Audit Committee
The Terms of Reference for the
Audit Committee, which have been
prepared in accordance with the
QCA
Code,
provide
for
the
Committee’s main responsibilities
to include:
Monitoring the independence
and objectivity of the Auditors,
Reviewing and approving the
external auditor’s terms
of
engagement, scope of work,
fees, the findings arising from
the external audit work and
external audit performance,
Monitoring the integrity of the
Group’s
published
financial
information,
Reviewing the risk identification
and risk management processes
of the Group, and
Reviewing
the
Group’s
procedures to prevent bribery
and corruption in addition to
ensuring
that
appropriate
whistleblowing
arrangements
are in place.
Internal Audit
Due to the current size of the
business, it is not considered
appropriate to have an internal
audit function.
Key Areas of Focus
The Committee’s particular areas of
focus during the year were as
follows:
Review of the 2024 Annual
Report and the accounting for
our licence interests,
Review of the interim results for
the six months ended 30 June
2024;
Considering areas of significant
judgement such as concluding
on going concern and existence
of impairment triggers;
Review of the 2025 cash budget.
Financial Auditors
BDO LLP remain the external
financial auditor of the Group. They
were appointed in 2023 after a
tendering exercise was carried out.
Management of Risk
As in previous years, it was decided
to continue with the Group practice
of the oversight of risk, and risk
management,
being
the
responsibility of the Board as a
whole,
rather
than
a
sub-
committee. A risk summary is
presented and discussed at Board
meetings.
Les Thomas
Chairman of the Audit Committee
27 May 2025
Jersey Oil and Gas plc
36
REMUNERATION REPORT
Introduction
This Remuneration Report has been
prepared by the Remuneration
Committee and approved by the
Board.
The
Committee
is
committed to transparent and
quality disclosure. Our report for
2024 sets out the details of the
remuneration
policy
for
the
Directors,
describes
its
implementation and discloses the
amounts paid during the year. The
remuneration report has not been
audited.
Membership & Meetings Held
The Remuneration Committee is
chaired by Frank Moxon and its
other members are Les Thomas and
Marcus
Stanton
(retired
31
December 2024) (all three are Non-
Executive
Directors).
The
Committee met formally three
times during 2024.
Remuneration Policy
The Committee aims to ensure that
total remuneration is set at an
appropriate level for the Group and
its operations.
The objectives and core principles of
the remuneration policy are to
ensure:
That
remuneration
levels
support the Group’s strategy;
An appropriate link between
performance and reward;
Alignment of Directors, senior
management and shareholder
interests;
Linking of long-term incentives
to shareholder returns;
Recruitment,
retention
and
motivation of individuals with
the
skills,
capabilities
and
experience to achieve Group
objectives; and,
Fostering good teamwork by
enabling all employees to share
in the success of the business.
There are four possible elements
that can make up the remuneration
packages for Executive Directors,
senior
management
and
employees:
Basic annual salary or fees;
Benefits in kind;
Discretionary
annual
bonus;
and,
Long-term incentives via the
Jersey Oil and Gas PLC 2016
Enterprise
Management
Incentive
(“EMI”)
and
Unapproved Share Option Plan
(the “Old Share Option Plan”)
and its replacement, the Jersey
Oil and Gas Plc 2021 Employee
Share Option Plan (the “New
Share Option Plan”).
Performance of the Group in 2024
JOG started the year by completing
a second farm out of its Greater
Buchan Area (GBA) licences to
Serica Energy, which acquired a
30% interest for an up-front cash
payment of £6 million plus the
potential for further contingent cash
payments. As a result of this and the
previous farm out to Neo Energy,
the Company benefitted from a
free-carry for its share of the
approximately £24 million spent to
date by the Buchan joint venture.
Work undertaken during 2024
included the completion of Front
End Engineering and Design studies
and offshore surveys and the
submission of an Environmental
Impact Assessment and associated
public consultation process. This
process was paused in September
2024 when the UK Government
launched a consultation on new
environmental guidance for oil &
gas developments in light of recent
case law. As a result of this,
together with uncertainties created
by the UK Government’s fiscal
regime for North Sea oil & gas
companies, work on the GBA
project slowed down considerably in
the latter part of the year. This was
mitigated to some extent by a
successful application for a 24-
month extension, to 28 February
2027, of the P2498 Buchan licence,
a shift of focus towards closing out
various technical and commercial
matters
to
progress
the
development execution plan and a
50% reduction in projected 2025
cash running costs.
Key Activities in 2024
Approved
the
vesting,
in
accordance with their terms, of
the final tranche (of three) of
share
options
granted
to
employees in January 2021, the
second tranche (of three) of
share
options
granted
to
Executive
Directors
and
employees in April 2022.
Reviewed and considered the
remuneration provisions of the
2023
QCA
Corporate
Governance Code.
Reviewed the staff retention
implications
of
the
50%
reduction in salary levels across
the
Group
and
made
recommendations to the Board.
In carrying out its responsibilities the
Remuneration
Committee
has
previously taken ad hoc external
advice from h2g Remuneration
Advisory, its remuneration adviser.
Basic Salary
The basic salaries of Executive
Directors are normally reviewed by
the
Committee
(considering
individual
performance,
market
factors
and
sector
conditions)
around the end of each year with
any changes usually taking effect
from 1 January of the following year.
However, in November 2024, as
part of the plan to reduce the cash
costs of the business, both staff and
Directors reduced their salaries by
50%.
Jersey Oil and Gas plc
37
The annual salary of Andrew Benitz
as at 1 January 2024 was £275,000
(2023: £250,000). The salary of
Graham Forbes as at 1 January 2024
was £259,200 (2023: £240,000).
These were last increased in May
2023. Following the cash cost
reduction in November 2024 the
annual salaries of Andrew Benitz
and Graham Forbes in 2025 have
ben reduced to £137,500 and
£129,600, respectively.
Benefits in Kind &
Cash Equivalents
Benefits provided to Executive
Directors during the year comprised
life
and
income
protection
insurance
and
private
health
insurance. In addition, Andrew
Benitz received a 10% matching
pension
contribution
until
November 2024 when he opted to
take an 8% cash alternative, while
Graham Forbes took an 8% cash
alternative from mid-June 2024
when he transferred from the 10%
matching
pension
contribution
option.
Discretionary Bonuses
Following the completion of a farm-
out to Serica Energy in February
2024 (thereby finalising a two-stage
process that provided JOG with $38
million in cash payments, of which
$18 million had been received) the
Executive Directors were awarded
performance bonuses during 2024,
having met or exceeded agreed
KPI’s. Andrew Benitz and Graham
Forbes were each awarded a bonus
equivalent to 100% of their salary
reflecting
this
transformational
progress.
Share Option Plans
Under the terms of the Old Share
Option
Plan,
Directors
and
employees are eligible for awards.
EMI options are subject to an
aggregate limit of £3m and an
individual limit of £250,000 by
market
value
of
shares.
Performance conditions are not
required but options can be granted
with
performance
conditions,
vesting
schedules
or
both.
Performance conditions can apply
to individual tranches within grants.
Performance conditions can be
amended, provided they are still
deemed
a
fair
measure
of
performance and not materially
more easy or difficult to satisfy as a
result. Upon any change of control,
all options vest in full, and any
performance conditions are not
applied.
The
New
Share
Option
Plan
contains no EMI provisions since
JOG no longer meets the relevant
eligibility requirements.
No new share option awards were
made to Directors and employees
during the year.
Jersey Oil and Gas plc
38
Executive Directors’ Service Contracts
The principal termination provisions of the Executive Directors’ service contracts, as amended by any relevant deed
of variation, are summarised below. Executive Directors’ service contracts are available to view at the Company’s
registered office.
J A Benitz
G A Forbes
Effective Contract Date
11.03.19
22.11.21
Unexpired Term
Rolling Contract
Rolling Contract
Notice Period
12 months save that, in certain
circumstances
(including
material
changes to contract terms or non-
consensual relocation), the Executive
may provide 30 days’ notice
3 months (extended to 6 months in
March 2025)
Non‐Executive Directors’ Fees
The Non-Executive Directors receive an annual fee for carrying out their duties and responsibilities. The level of such
fees is set and reviewed annually by the Board, excluding the Non-Executive Directors.
During 2024, the annual fees for L J Thomas (Non-Executive Chairman), F H Moxon (Senior Independent Director)
and M J Stanton (Non-Executive Director) were:
Role
Reduced rate from
Nov 2024
Fee 2024
Fee 2023
L J Thomas
Non-Exec. Chairman £38,000
£69,667
£66,000
F H Moxon
Senior Independent
Director
£31,000
£56,833
£54,000
M J Stanton
(resigned 31
December 2024)
Non-Exec. Director
£56,600
£56,600
£48,600
During the year, the Non-Executive Directors did not receive additional fees for acting as members of the Board’s
various committees.
Non‐Executive Directors’ Letters of Appointment
The principal termination provisions of the Non-Executive Directors’ letters of appointment, as amended by any
relevant deed of variation, are summarised below. Non-Executive Directors’ letters of appointment are available
to view at the Company’s registered office.
L J Thomas
M J Stanton
F Moxon
Date of Appointment
13.04.21
11.03.19
11.03.19
Date of Resignation
-
01.01.2025
-
Unexpired Term
Rolling Contract
Rolling Contract
Rolling Contract
Notice Period
6 Months
3 Months
6 Months
Loss of Compensation
No
No
No
Jersey Oil and Gas plc
39
Directors’ Emoluments
Year Ended 31 Dec. 2024
Year Ended 31 Dec. 2023
Presented in
£’000s
Salary
/ Fees
Pension
Benefits
Bonus
Total
Salary
/ Fees
Pension
Benefits
Bonus
Total
J A Benitz
(note 2)
254
23
4
250
531
267
27
4
250
548
G A Forbes
(note 1)
247
11
5
240
503
253
11
6
240
510
Executive
Directors
501
34
9
490
1,034
520
38
10
490
1,058
L J Thomas
70
-
-
-
70
59
-
-
-
59
M J Stanton
(resigned 31
December
2024)
71*
-
-
-
71
53
-
-
-
53
F H Moxon
57
2
-
-
59
53
2
-
-
55
Non-Exec.
Directors
198
2
-
-
200
165
2
-
-
167
Total
Directors
699
36
9
490
1,234
685
40
10
490
1,225
*: Includes £14,150 redundancy paid in Dec 2024.
Notes:
1.
Until August 2023 salary includes an 8% cash contribution as an alternative to a matching 10% pension contribution, and again from
July 2024.
2.
Until November 2024 a matching 10% pension contribution, thereafter an 8% cash contribution as an alternative.
Jersey Oil and Gas plc
40
Options held by Directors at 31 December 2024 are set out below.
Notes:
1. These options were originally exercisable at any time up to 29 January 2023, but the expiry date was extended to 29 January 2024 due to the
Company being in a prolonged close period.
2. All the options had vested and were exercisable up to 17 January 2024 but subsequently lapsed.
3. All the options have vested, are exercisable up to 18 March 2028 and will lapse if not exercised by such date.
4. All the options have vested, are exercisable up to 18 March 2026 and will lapse if not exercised by such date.
5. All the options have vested, are exercisable up to 23 November 2028 and will lapse if not exercised by such date.
6. Options vest in three equal tranches (one, two and three years from the date of grant) and are subject to the satisfaction of certain performance
conditions to be determined and interpreted at the discretion of the Remuneration Committee. The first two tranches have already vested.
Subject to vesting, the options are exercisable up to 29 April 2029.
7. Options vest in three equal tranches (one, two and three years from the date of grant) and have no performance conditions. The first two
tranches have already vested. Subject to vesting, the options are exercisable up to 29 April 2027.
8. Options vest in three equal tranches (one, two and three years from the date of grant) and are subject to the satisfaction of certain
performance conditions to be determined and interpreted at the discretion of the Remuneration Committee. The first tranche has already
vested. Subject to vesting, the options are exercisable up to 19 April 2030.
9. Options vest in three equal tranches (one, two and three years from the date of grant) and have no performance conditions. The first tranche
has already vested. Subject to vesting, the options are exercisable up to 19 April 2028.
Presented in ‘000s
Grant date Exercisable
By
At 1 Jan
2023
Issued Exercised Lapsed At 31 Dec
2023
Issued Exercised Lapsed
At 31 Dec
2024
Executive Directors
J A Benitz
At 200.0p
29.01.18
29.01.25
180
-
-
-
180
-
-
-
180
At 175.0p
17.01.19
17.01.26
70
-
-
-
70
-
-
-
70
At 210.0p (note 3)
18.03.21
18.03.28
110
-
-
-
110
-
-
-
110
At 230.0p (note 6)
29.04.22
29.04.29
290
-
-
-
290
-
-
-
290
At 247.5p (note 8)
19.04.23
19.04.30
-
150
-
-
150
-
-
-
150
650
150
-
-
800
-
-
-
800
G A Forbes
At 147.0p (note 5)
23.11.21
23.11.28
350
-
-
-
350
-
-
-
350
At 230.0p (note 6)
29.04.22
29.04.29
150
-
-
-
150
-
-
-
150
At 247.5p (note 8)
19.04.23
19.04.30
-
100
-
-
100
-
-
-
100
500
100
-
-
600
-
-
-
600
Non-Executive
Directors
L J Thomas
At 230.0p (note 7)
29.04.22
29.04.27
75
-
-
-
75
-
-
-
75
At 247.5p (note 9)
19.04.23
19.04.28
-
45
-
-
45
-
-
-
45
75
45
-
-
120
-
-
-
120
F H Moxon
At 200.0p (note 1)
29.01.18
29.01.24
20
-
-
-
20
-
-
(20)
-
At 175.0p (note 2)
17.01.19
17.01.24
15
-
-
-
15
-
-
(15)
-
At 210.0p (note 4)
18.03.21
18.03.26
15
-
-
-
15
-
-
-
15
At 230.0p (note 7)
29.04.22
29.04.27
30
-
-
-
30
-
-
-
30
At 247.5p (note 9)
19.04.23
19.04.28
-
20
-
-
20
-
-
-
20
80
20
-
-
100
-
-
(35)
65
M J Stanton
(resigned December
2024)
At 200.0p (note 1)
29.01.18
29.01.24
40
-
-
-
40
-
-
(40)
-
At 175.0p (note 2)
17.01.19
17.01.24
20
-
-
-
20
-
-
(20)
-
At 210.0p (note 4)
18.03.21
18.03.26
20
-
-
-
20
-
-
-
20
At 230.0p (note 7)
29.04.22
29.04.27
30
-
-
-
30
-
-
-
30
At 247.5p (note 9)
19.04.23
19.04.28
-
20
-
-
20
-
-
-
20
110
20
-
-
130
-
-
(60)
70
Total
1,415
335
-
-
1,750
-
-
(95)
1,655
Jersey Oil and Gas plc
41
Shareholder Feedback
The objective of this report is to communicate the remuneration of the Directors and how this is linked to
performance. In this regard the Board is committed to maintaining an open and transparent dialogue with
shareholders and is always interested to hear their views on remuneration matters.
Frank Moxon
Chairman of the Remuneration Committee
27 May 2025
Jersey Oil and Gas plc
42
Independent auditor’s report to the members of Jersey Oil and Gas Plc
Opinion on the financial statements
In our opinion:
•
the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at
31 December 2024 and of the Group’s loss for the year then ended;
•
the Group financial statements have been properly prepared in accordance with UK adopted international accounting
standards;
•
the Parent Company financial statements have been properly prepared in accordance with United Kingdom Generally
Accepted Accounting Practice; and
•
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Jersey Oil and Gas Plc (the ‘Parent Company’) and its subsidiaries (the ‘Group’) for
the year ended 31 December 2024 which comprise the consolidated statement of comprehensive income, consolidated statement
of financial position, consolidated statement of changes in equity, consolidated statement of cash flows, company statement of
financial position, company statement of changes in equity and notes to the financial statements, including a summary of material
accounting policies.
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law
and UK adopted international accounting standards. The financial reporting framework that has been applied in the preparation
of the Parent Company financial statements is applicable law and United Kingdom Accounting Standards, including Financial
Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements
section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We remain independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to
our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed entities, and we have
fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. Our evaluation of the Directors’ assessment of the Group and the Parent
Company’s ability to continue to adopt the going concern basis of accounting included:
-
Obtaining and examining management’s base case forecasts and downside scenarios and verifying that these
forecasts had been subject to board review and approval.
-
Challenging and corroborating the future cash flows included in the base case to ensure these are consistent with our
understanding of work performed over other key areas of the financial statements.
-
Assessing the downside scenarios applied by management, ensuring that these represented reasonably plausible
downside scenarios in the context of the business, and overlaying additional sensitivities to understand the impact of
changes in cash flows of the Group.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group and the Parent Company’s ability to continue as a going
concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections
of this report.
Jersey Oil and Gas plc
43
Overview
Coverage
100% of Group loss before tax
99% of Group total assets
Key audit matters
2024
2023
Impairment of intangible assets
Accounting for farm-out arrangements
×
Accounting for farm-out arrangements is no longer considered to be a key
audit matter because the farm-out transaction which completed during 2024
was assessed in combination with the first farm out transaction, which
concluded in 2023, and as a result the audit team assessed a lower level of
inherent risk during the 2024 audit.
Materiality
Group financial statements as a whole
£364,000 (2023: £418,000) based on 1.5% (2023: 1.5%) of total assets.
An overview of the scope of our audit
Our Group audit was scoped by obtaining an understanding of the Group and its environment, the applicable financial reporting
framework and the Group’s system of internal control. On the basis of this, we identified and assessed the risks of material
misstatement of the Group financial statements including with respect to the consolidation process. We then applied professional
judgement to focus our audit procedures on the areas that posed the greatest risks to the group financial statements. We
continually assessed risks throughout our audit, revising the risks where necessary, with the aim of reducing the group risk of
material misstatement to an acceptable level, in order to provide a basis for our opinion.
Components in scope
The Group consists of the Parent Company (Jersey Oil and Gas Plc ) and six subsidiaries of which two were identified as requiring
audit procedures for the audit of the Group (Jersey Petroleum Limited and Jersey Oil and Gas E&P Limited). As part of performing
our Group audit, we have determined the Parent Company to be in a full scope audit and these two subsidiaries to be full scope
audit on financial statement areas based on the Group risks assessment. All components are audited by the Group audit team
and are managed centrally by the same finance team which is based in the United Kingdom and therefore the control environment
is the same.
Procedures performed at the component level
We performed procedures to respond to group risks of material misstatement at the component level that included the following.
Component
Component Name
Entity
Group Audit Scope
1
Parent Company
Jersey Oil and Gas Plc
Statutory audit and procedures on the entire
financial information of the component.
2
Subsidiaries
Jersey Petroleum Ltd
and Jersey Oil and Gas
E&P Ltd
Procedures on one or more classes of
transactions, account balances or disclosures
The Group engagement team has performed all procedures directly and has not involved component auditors in the Group audit.
Procedures performed centrally
We considered there to be a high degree of centralisation of financial reporting and commonality of controls and similarity of the
group’s activities and business lines in relation to all FSAs. We therefore designed and performed procedures centrally in these
areas.
The group operates and also outsource a centralised IT function that supports IT processes for all components. This IT function
is subject to specified risk-focused audit procedures, predominantly the testing of the relevant IT general controls and IT
application controls.
Jersey Oil and Gas plc
44
Changes from the prior year
There have no significant changes on the Group audit scope from the prior year.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to
fraud) that we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources
in the audit, and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter
How the scope of our audit addressed the key audit matter
Impairment
of
Intangible
asset
Refer to noted
10
and
2
(Exploration and
evaluation costs
section)
At 31 December 2024, the group held
intangible assets on its statement of
financial position, as detailed in note 10,
with a value of £11.7m (2023: £16.4m).
The Directors are required to assess
whether impairment indicators exist in
accordance with IFRS 6 and perform
impairment testing if such indicators are
identified. There is a risk that the
Directors will not identify impairment
indicators when they exist.
Given the financial significance of the
intangible assets in the context of the
Group’s statement of financial position
and the significant degree of judgement
involved in the assessment
of whether any indicators of
impairment exist, we considered this to
be a key audit matter.
In addressing the KAM, we have performed the following audit
procedures:
-
We have reviewed and challenged management’s
impairment indicator assessment and considered whether
there are any indicators of impairment in line with criteria
set out under IFRS 6;
-
We have obtained and reviewed relevant license
agreements relating to the GBA assets and NSTA
correspondence to consider any indicators that the
licenses will not be extended past current term;
-
We have corroborated the independence and competence
of management’s expert opining on reserves and
resources and assessed whether these are indicative of
the GBA asset not being recoverable;
-
We have considered information obtained during our audit
work to assess whether there are any other potential
indicators of impairment that have not been identified by
management. In doing so, we have reviewed the results of
studies undertaken in the year on the GBA asset, to
evaluate whether there are indicators of impairment;
-
We have assessed the impact of climate change and how
it has been factored into management’s assessment; and
-
Reviewed and assessed management’s disclosures
included within the financial statements.
Key observations:
Based on the procedures performed, we have found the
Directors’ assessment of the carrying value of intangible assets
to be acceptable.
Jersey Oil and Gas plc
45
Our application of materiality
We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. We
consider materiality to be the magnitude by which misstatements, including omissions, could influence the economic decisions
of reasonable users that are taken on the basis of the financial statements.
In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower
materiality level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these
levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and the
particular circumstances of their occurrence, when evaluating their effect on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole and performance
materiality as follows:
Group financial statements
Parent company financial statements
2024
£
2023
£
2024
£
2023
£
Materiality
364,000
418,000
184,000
165,000
Basis
for
determining
materiality
1.5% of total
assets
1.5% of total assets
1.5% of total
assets
1.7% of total assets
Rationale for the benchmark
applied
We considered total assets to be the
most significant determinant of the
Group’s financial performance for users
of the financial statements, given the
Group’s exploration focus.
We considered total assets to be the most
significant determinant of the parent company’s
financial performance for users of the financial
statements, given the nature of the entity as a
holding company within the group.
Performance materiality
273,000
271,700
138,300
107,200
Basis
for
determining
performance materiality
75%
of
overall
materiality
65%
of
overall
materiality
75% of overall
materiality
65% of overall materiality
Rationale for the percentage
applied
for
performance
materiality
Performance materiality was set considering factors including the nature of activities and
expected total value of known and likely misstatements, based on our understanding of the
group.
Component performance materiality
For the purposes of our Group audit opinion, we set performance materiality for each component of the Group, apart from the
Parent Company whose materiality and performance materiality are set out above, based on a percentage of 95% of Group
performance materiality dependent on the size and our assessment of the risk of material misstatement of those components.
Component performance materiality £259,000.
Reporting threshold
We agreed with the Audit Committee that we would report to them all individual audit differences in excess of £18,000 (2023:
£12,500). We also agreed to report differences below this threshold that, in our view, warranted reporting on qualitative grounds.
Other information
The directors are responsible for the other information. The other information comprises the information included in the document
entitled annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any
form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or
otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements,
we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based
on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact.
We have nothing to report in this regard.
Jersey Oil and Gas plc
46
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during the course of the audit, we are required by the
Companies Act 2006 and ISAs (UK) to report on certain opinions and matters as described below.
Strategic
report
and
Directors’
report
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Strategic report and the Directors’ report for the financial year for which
the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors’ report have been prepared in accordance with applicable
legal requirements.
In the light of the knowledge and understanding of the Group and Parent Company and its environment
obtained in the course of the audit, we have not identified material misstatements in the strategic report
or the Directors’ report.
Matters on which
we are required to
report
by
exception
We have nothing to report in respect of the following matters in relation to which the Companies Act
2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the Parent Company, or returns adequate
for our audit have not been received from branches not visited by us; or
the Parent Company financial statements are not in agreement with the accounting records
and returns; or
certain disclosures of Directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and the Parent Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no
realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including fraud is detailed below:
Non-compliance with laws and regulations
Based on:
Our understanding of the Group and the industry in which it operates;
Discussion with management and the Audit committee; and
Obtaining an understanding of the Group’s policies and procedures regarding compliance with laws and regulations;
We considered the significant laws and regulations to be UK adopted International Accounting Standards, UK tax legislation,
Petroleum Act 1998, AIM Listing Rules and Companies Act 2006.
Jersey Oil and Gas plc
47
The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the
amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such
laws and regulations to be the Petroleum Act 1998.
Our procedures in respect of the above included:
Review of minutes of meetings of those charged with governance for any instances of non-compliance with laws and
regulations;
Review of correspondence with regulatory and tax authorities including NSTA and HMRC for any instances of non-
compliance with laws and regulations;
Review of financial statement disclosures and agreeing to supporting documentation; and
Review of legal expenditure accounts to understand the nature of expenditure incurred.
Fraud
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment
procedures included:
Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;
Obtaining an understanding of the Group’s policies and procedures relating to:
o
Detecting and responding to the risks of fraud; and
o
Internal controls established to mitigate risks related to fraud.
Review of minutes of meetings of those charged with governance for any known or suspected instances of fraud;
Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud; and
Considering remuneration incentive schemes and performance targets and the related financial statement areas
impacted by these.
Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls, and
areas of judgement due to the level of subjectivity involved in them.
Our procedures in respect of the above included:
Holding fraud inquiries with management and those charged with governance to identify whether any instances of fraud
were noted in the period;
Making enquiries of management as to whether there was any correspondence with regulators and the Government,
in so far as the correspondence related to the financial statements and reviewed this correspondence;
Performing targeted journal entry testing based on identified characteristics the audit team considered could be
indicative of fraud to address the presumed risk of management override of controls;
Reviewing the Group’s year end unadjusted entries, consolidated entries and investigating any that appear unusual as
to nature or amount by agreeing to supporting documentation; and
Assessing significant estimates made by management for bias.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who
were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-
compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the
risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud
may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent
limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the
events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A
further description
of
our responsibilities
is
available on
the Financial Reporting
Council’s
website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
Jersey Oil and Gas plc
48
This report is made solely to the Parent Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the Parent Company’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the Parent Company and the Parent Company’s members as a
body, for our audit work, for this report, or for the opinions we have formed.
John Black (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London, UK
27 May 2025
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Jersey Oil and Gas plc
49
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2024
Continuing operations
Note
2024
£
2023
£
Administrative expenses
(4,079,726)
(5,706,675)
Operating loss
7
(4,079,726)
(5,706,675)
Finance income
6
542,637
114,825
Finance expense
6
(3,185)
(3,503)
Loss before tax
7
(3,540,274)
(5,595,353)
Tax
8
-
-
Loss for the year
(3,540,274)
(5,595,353)
Total comprehensive loss for the year (net of tax)
(3,540,274)
(5,595,353)
Total comprehensive loss for the year attributable to:
Owners of the parent
(3,540,274)
(5,595,353)
Loss per share expressed in pence per share:
Basic
9
(10.84)
(17.19)
Diluted
9
(10.84)
(17.19)
The notes on pages 53 to 73 are an integral part of these financial
statements
Jersey Oil and Gas plc
50
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2024
Note
2024
£
2023
£
Non-current assets
Intangible assets - exploration & development costs
10
11,741,406
16,421,797
Property, plant and equipment
11
1,675
-
Right-of-use assets
12
83,797
139,661
Deposits
17,466
2,692
11,844,344
16,564,150
Current assets
Trade and other receivables
13
86,732
478,234
Cash and cash equivalents
14
6,185,872
5,482,935
Term deposits
15
6,150,000
5,000,000
12,422,604
10,961,169
Total assets
24,266,948
27,525,319
Equity
Called up share capital
16
2,574,529
2,574,529
Share premium account
110,535,059
110,535,059
Share options reserve
20
4,504,673
3,890,986
Accumulated losses
(93,349,289)
(89,960,102)
Reorganisation reserve
(382,543)
(382,543)
Total equity
23,882,429
26,657,929
Liabilities
Non-current liabilities
Lease liabilities
12
14,585
71,309
14,585
71,309
Current liabilities
Trade and other payables
17
313,211
740,927
Lease liabilities
12
56,723
55,154
369,934
796,081
Total liabilities
384,519
867,390
Total equity and liabilities
24,266,948
27,525,319
The financial statements on pages 49 to 52 were approved by the Board of Directors and authorised for issue on 27
May 2025 They were signed on its behalf by Graham Forbes – Chief Financial Officer.
Graham Forbes
Chief Financial Officer
27 May 2025
Company Registration Number: 07503957
The notes on pages 53 to 73 are an integral part of these financial
statements
Overview
Our Governance
Jersey Oil and Gas plc
51
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2024
Called up
share
capital
£
Share
premium
account
£
Share
options
reserve
£
Accumulated
losses
£
Reorganisation
reserve
£
Total
equity
£
At 1 January 2023
Note
2,573,395
110,309,524
2,566,343
(84,600,273)
(382,543)
30,466,446
Loss and total
comprehensive
loss for the year
-
-
-
(5,595,353)
-
(5,595,353)
Transactions with owners in
their capacity as owners
Issue of share capital
1,134
225,535
-
-
-
226,669
Expired share options
20
-
-
-
-
-
-
Lapsed share options
20
-
-
(148,178)
148,178
-
-
Exercised share options
20
-
-
(87,346)
87,346
-
-
Share based payments
20
-
-
1,560,167
-
-
1,560,167
At 31 December 2023 and
1 January 2024
2,574,529
110,535,059
3,890,986
(89,960,102)
(382,543)
26,657,929
Loss and total
comprehensive
loss for the year
-
-
-
(3,540,274)
-
(3,540,274)
Transactions with owners in
their capacity as owners
Expired share options
20
-
-
(151,087)
151,087
-
-
Share based payments
20
-
-
764,774
-
-
764,774
At 31 December 2024
2,574,529
110,535,059
4,504,673
(93,349,289)
(382,543)
23,882,429
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
Amountsubscribedfor sharecapitalinexcessofnominalvalue
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 deficit in respect of options exercised or
cancelled/lapsed
Accumulated losses
Cumulative netgainsand lossesrecognised inthe ConsolidatedStatement ofComprehensive Income
Reorganisation reserve
Amounts resulting from the restructuring of the Group at the time of the Initial Public Offering (IPO) in 2011
Jersey Oil and Gas plc
52
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December
Note
2024
£
2023
£
Cash flows from operating activities
Cash used in operations
22
(3,359,763)
(4,185,049)
Interest paid
6
(3,185)
(3,503)
Net cash used in operating activities
(3,362,948)
(4,188,552)
Cash flows from investing activities
Farm-out proceeds
5,519,216
9,103,944
Interest received
6
490,674
114,825
Purchase of tangible assets
11
(2,363)
-
Purchase of intangible assets
10
(736,487)
(1,013,081)
Investing cash flows before movements in capital balances
5,271,040
8,205,688
Changes in Term deposits:
15
(1,150,000)
(5,000,000)
Net cash from investing activities
4,121,040
3,205,688
Cash flows from financing activities
Principal elements of lease payments
(55,155)
(113,550)
Net cash (used in)/generated from financing activities
(55,155)
(113,550)
Decrease in cash and cash equivalents
22
702,937
(1,096,414)
Cash and cash equivalents at beginning of year
14
5,482,935
6,579,349
Cash and cash equivalents at end of year
14
6,185,872
5,482,935
The notes on pages 51 to 73 are an integral part of these financial statements
Jersey Oil and Gas plc
53
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
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.
2. Material accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out
below. These policies have been consistently applied to all the periods presented, unless otherwise stated.
Basis of Accounting
The consolidated financial statements of Jersey Oil and Gas Plc as of 31 December 2024 and for the year then ended
(the "consolidated financial statements") were prepared in accordance with UK-adopted International Accounting
Standards in conformity with the requirements of the Companies Act 2006 (the "Companies Act").
The financial statements have been prepared under the historic cost convention, except as disclosed in the
accounting policies below. All amounts disclosed in the financial statements and notes have been rounded off to the
nearest one thousand pounds unless otherwise stated.
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 financial statements. The Group has cash reserves following the successful farm-out of the
GBA licences and receipt of initial funds resulting from the two transactions with NEO and Serica. The Group now
has a fully funded 20% interest in the on-going Buchan redevelopment project. Other work that the Group is
undertaking in respect of the GBA licenses and surrounding areas is modest relative to its current cash reserves. 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 financial statements. Even in a
scenario where the Buchan redevelopment did not progress for any reason and any future instalment payments
were not realised the Group already has in place a cost structure and expenditure profile that enables the business
to continue 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 the farm-outs 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 consolidated financial statements.
Jersey Oil and Gas plc
54
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
New and amended standards adopted by the Group. The Group has applied the following amendments for the first
time for the annual reporting period commencing 1 January 2024:
• Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
• Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
• Non-current Liabilities with Covenants (Amendments to IAS 1)
The amendments listed above did not have any impact on the amounts recognised in prior periods and are not
expected to significantly affect the current or future periods.
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting standards and interpretations have been published
that are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the Group.
These standards, amendments or interpretations are not expected to have a material impact on the entity in the
current or future reporting periods or on foreseeable future transactions.
• Lack of Exchangeability (Amendments to IAS 21)
• Amendments to the Classification and Measurement of Financial Instruments (Amendments
to IFRS 9 and 7)
• IFRS 18 ‘Presentation and Disclosure in Financial Statements’
• IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’
Significant Accounting Judgements and Estimates
The preparation of the financial statements requires management to make estimates and assumptions that affect the
reported amounts of expenses, assets and liabilities at the date of the financial statements. If in the future such
estimates and assumptions, which are based on management’s best judgement at the date of the financial
statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as
appropriate in the period in which the circumstances change. The Group’s accounting policies make use of
accounting estimates and judgements in the following areas:
•
The judgement of the existence of impairment triggers (note 10).
•
The estimation of share-based payment costs (note 20).
•
The judgement associated with the treatment of farm-out transactions.
Impairments
The Group tests its capitalised exploration licence costs for impairment when indicators, further detailed below under
‘Exploration and Evaluation Costs’ as set out in IFRS 6, suggest that the carrying amount exceeds the recoverable
amount which is inherently judgmental. An impairment loss is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount of the Cash Generating Unit is the higher
of an asset’s fair value less costs of disposal and value in use. The Group assessed that there were no impairment
triggers during the year.
Jersey Oil and Gas plc
55
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
Share-Based Payments
The Group currently has several share schemes that give rise to share-based payment charges. The charge to
operating profit for these schemes amounted to £764,774 (2023: £1,560,167). Estimates and judgements for
determining the fair value of the share options are required. For the purposes of the calculation, a Black-Scholes
option pricing model has been used. Based on experience, it has been assumed that options will be exercised, on
average, at the mid-point between vesting and expiring. The share price volatility used in the calculation is based on
the actual volatility of the Group’s shares since 1 January 2017. The risk-free rate of return is based on the implied yield
available on zero coupon gilts with a term remaining equal to the expected lifetime of the options at the date of grant.
Estimates are also used when calculating the likelihood of share options vesting given the vesting conditions of time
and performance on the options granted. Share options that expire unexercised are accounted for by reversing any
previously recognised expense. Expired options do not result in a cash outflow and have no further impact on the
Group’s financial position beyond the reversal of previously recognised charges.
Farm-out transactions
Determining the value of the consideration received for a farm-out disposal of assets with proven resources can be
challenging. This is even more the case for assets which are farmed out in the pre proven resources phase. A
judgement has been made that for such farm-outs only cash payments received will be recognised and no
recognition will be made of any consideration in respect of the future value of work to be performed and carried by
the farmee. Rather, the Group will carry the remaining interest at the previous full interest cost reduced by the
amount of any cash consideration received from entering into the agreement. The effect will be that there is no gain
recognised on the farm-out unless the cash consideration received exceeds the carrying value of the entire asset
held. Upon FID, the Group will start recognising both cash payments received and the value of future carried assets
to be received and will recognise a future asset receivable with an accompanying gain in the income statement for
the equity share of the asset disposed of.
Basis of Consolidation
(a) Subsidiaries
Subsidiaries are all entities over which the Group has the power to govern their financial and operating policies
generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of
potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group
controls another entity. The Group also assesses the existence of control where it does not have more than 50% of the
voting power but is able to govern the financial and operating policies by virtue of de facto control. De facto control
may arise in circumstances where the size of the Group’s voting rights relative to the size and dispersion of holdings
of other Shareholders give the Group the power to govern the financial and operating policies.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated
from the date the Group ceases to have control.
(b) Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions
- that is, as transactions with the owners in their capacity as owners. The difference between fair value of any
consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in
equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.
(c) Disposal of subsidiaries
When the Group ceases to have control any retained interest in the entity is remeasured to its fair value at the date
when control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying
amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture, or financial
asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are
accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts
previously recognised in other comprehensive income are reclassified to profit or loss.
Jersey Oil and Gas plc
56
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
Inter-company transactions, balances, income and expenses on transactions between Group companies are
eliminated on consolidation. Profits and losses resulting from inter-company transactions that are recognised in assets
are also eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the Group.
The following subsidiaries which are included in these consolidated accounts are exempt from the requirements of
the Companies Act relating to the audit of their accounts under section 479A of the Companies Act 2006:
Subsidiary
Registration number
Country of Incorporation
JerseyNorthSeaHoldingsLtd
06451896
England&Wales
Jersey Petroleum Ltd
06490608
England&Wales
Jersey V&C Ltd
10853027
England&Wales
Sunny Day 123 Ltd*
15207887
England&Wales
Jersey E & P Ltd**
SC319467
Scotland
JerseyOilLtd**
SC319461
Scotland
Jersey Exploration Ltd**
SC319459
Scotland
Jersey Oil & Gas E & P Ltd
115157
Jersey
*Dissolved 25 February 2025
**Dissolved 11 February 2025
Acquisitions, Asset Purchases and Disposals
Transactions involving the purchase of an individual field interest, farm-ins, farm-outs or acquisitions of exploration and
evaluation licences for which a development decision has not yet been made that do not qualify as a business
combination, are treated as asset purchases. Accordingly, no goodwill or deferred tax arises. The purchase
consideration is allocated to the assets and liabilities purchased on an appropriate basis. Proceeds on disposal
(including farm-ins/farm-outs) are applied to the carrying amount of the specific intangible asset or development and
production assets disposed of, and any surplus is recorded as a gain on disposal in the Consolidated Statement of
Comprehensive Income.
Acquisitions of oil and gas properties are accounted for under the purchase method where the acquisitions meet the
definition of a business combination. The Group applies the acquisition method of accounting to account for business
combinations. The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred,
the liabilities incurred, and the equity interests issued by the Group. The consideration transferred includes the fair
value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and
liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value at the
acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition
basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of the
acquiree’s identifiable net assets.
Acquisition related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity
interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.
Any contingent consideration to be transferred on a business combination by the Group is recognised at fair value at
the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an
asset or liability are recognised in accordance with IFRS 9 either in profit or loss or as a change to other comprehensive
income. Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is
accounted for within equity.
Jersey Oil and Gas plc
57
Our Governance
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the fair value of the
non-controlling interest over the net identifiable assets acquired and liabilities assumed. If this consideration is lower
than the fair value of the net assets of the subsidiary acquired, the difference is recognised in profit or loss.
Exploration and Evaluation Costs
The Group accounts for oil and gas exploration and evaluation costs using IFRS 6 “Exploration for and Evaluation of
Mineral Resources”. Such costs are initially capitalised as Intangible Assets and include payments to acquire the legal
right to explore, together with the directly related costs of technical services and studies, seismic acquisition,
exploratory drilling and testing. The Group only capitalises costs as intangible assets once the legal right to explore an
area has been obtained. The Group assesses the intangible assets for indicators of impairment at each reporting date.
Potential indicators of impairment include but are not limited to:
a) the period for which the Group has the right to explore in the specific area has expired during the period or will
expire soon and is not expected to be renewed.
b) substantive expenditure on further exploration for and evaluation of oil and gas reserves in the specific area is
neither budgeted nor planned.
c) exploration for and evaluation of oil and gas reserves in the specific area have not led to the discovery of
commercially viable quantities of oil and gas reserves and the entity has decided to discontinue such activities in
the specific area.
d) sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or
by sale.
The Group analyses the oil and gas assets into cash generating units (CGUs) for impairment and reporting purposes.
In the event an impairment trigger is identified the Group performs a full impairment test for the CGU under the
requirements of IAS 36 Impairment of assets. An impairment loss is recognised for the amount by which the
exploration and evaluation assets’ carrying amount exceeds their recoverable amount. The recoverable amount is the
higher of the exploration and evaluation assets’ fair value less costs of disposal and value in use.
As at 31 December 2024, the carrying value of intangible assets was £11.7m, as per Note 10 ‘Intangible Assets’. The
Group considered other factors which could give rise to an impairment trigger such as commodity prices, licence
expiration dates, budgeted spend and movements in estimated recoverable reserves. Based on this assessment, no
impairment triggers existed in relation to exploration assets as of 31 December 2024. For more detail on the current
position, please refer to note 23, Post Balance Sheet Events.
Property, Plant and Equipment
Property, plant and equipment is stated at historic purchase cost less accumulated depreciation. Asset lives and
residual amounts are reassessed each year. Cost includes the original purchase price of the asset and the costs
attributable to bringing the asset to its working condition for its intended use.
Depreciation on these assets is calculated on a straight-line basis as follows:
Computer & office equipment 3 years
Jersey Oil and Gas plc
58
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
Leases
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net
present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the
commencement date;
• amounts expected to be payable by the Group under residual value guarantees;
• the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the
liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is used, being
the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value
to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Group where possible, uses recent third-party rates provided by
banks or financial institutions as a starting point, adjusted to reflect changes in financing conditions since third party
financing was received.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over
the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each
period.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date less any lease incentives received;
• any initial direct costs; and
• restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-
line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over
the underlying asset’s useful life.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are
recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12
months or less. Low-value assets comprise any lease with a value of £5,000 or less.
Jersey Oil and Gas plc
59
Overview
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
Joint Ventures
The Group participates in joint venture/co-operation agreements with strategic partners; these are classified as joint
operations. The Group accounts for its share of assets, liabilities, income and expenditure of these joint venture
agreements and discloses the details in the appropriate Statement of Financial Position and Statement of
Comprehensive Income headings in the proportion that relates to the Group per the joint venture agreement.
Investments
Fixed asset investments in subsidiaries are stated at cost less accumulated impairment in the Company’s Statement
of Financial Position and reviewed for impairment if there are any indications that the carrying value may not be
recoverable.
Financial Instruments
Financial assets and financial liabilities are recognised in the Group and Company’s Statement of Financial Position
when the Group becomes party to the contractual provisions of the instrument. The Group does not have any
derivative financial instruments.
Cash and cash equivalents include cash in hand and deposits held on call with banks with a maturity of three months
or less.
Term deposits are those amounts held by third parties on behalf of the Group and are not available for the Group’s
use; these are recognised separately from cash and cash equivalents on the balance sheet.
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less any expected credit loss. The Group recognises an allowance for expected credit losses (ECLs)
for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive,
discounted at an approximation of the original effective interest rate. The carrying amount of the asset is reduced with
an allowance account, and the amount of the loss will be recognised in the Consolidated Statement of Comprehensive
Income within administrative expenses. Subsequent recoveries of amounts previously provided for are credited
against administrative expenses in the Consolidated Statement of Comprehensive Income.
Trade payables are stated initially at fair value and subsequently measured at amortised cost.
Offsetting of Financial Instruments
Financial assets and financial liabilities are offset, and the net amount is reported in the Consolidated Statement of
financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
Deferred Tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred taxation liabilities are provided, using the liability method, on all taxable temporary differences at the
reporting date. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from
the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be available
against which the temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at
each reporting date.
Jersey Oil and Gas plc
60
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
Current Tax
The current income tax charge is calculated based on the tax laws enacted or substantively enacted at the end of the
reporting period in the countries where Jersey Oil and Gas Plc and its subsidiaries operate and generate taxable
income. We periodically evaluate positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. Provisions are established where appropriate based on amounts expected to
be paid to the tax authorities.
Current tax is payable based upon taxable profit for the year. Taxable profit differs from net profit as reported in the
Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible
in other years and it further excludes items that are never taxable or deductible. Any Group liability for current tax is
calculated using tax rates that have been enacted or substantively enacted by the reporting date.
Foreign Currencies
The functional currency of the Company and its subsidiaries is Sterling. Monetary assets and liabilities in foreign
currencies are translated into Sterling at the rates of exchange ruling at the reporting date. Transactions in foreign
currencies are translated into Sterling at the rate of exchange ruling at the date of the transaction. Gains and losses
arising on retranslation are recognised in the Consolidated Statement of Comprehensive Income for the year.
Employee Benefit Costs
Payments to defined contribution retirement benefit schemes are recognised as an expense when employees have
rendered service entitling them to contributions.
Share-Based Payments
Equity settled share-based payments to employees and others providing similar services are measured at the fair value
of the equity instruments at the grant date. The total amount to be expensed is determined by reference to the fair value
of the options granted using the Black-Scholes Model:
•
including any market performance conditions (for example, an entity’s share price);
•
excluding the impact of any service and non-market performance vesting conditions (for example, profitability,
sales growth targets and remaining an employee of the entity over a specified time-period); and
•
including the impact of any non-vesting conditions (for example, the requirement for employees to save).
The fair value determined at the grant date of the equity settled share-based payments is expensed on a straight-line
basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a
corresponding increase in equity. At the end of each reporting period, the Group revises its estimate of the number of
equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit
or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity
settled employee benefits reserve.
Equity settled share-based payment transactions with parties other than employees are measured at the fair value of
the goods or services received, except where that fair value cannot be estimated reliably, in which case they are
measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods, or
the counterparty renders the service.
Exercise proceeds net of directly attributable costs are credited to share capital and share premium.
Jersey Oil and Gas plc
61
Our Financials
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
Contingent Liabilities & Provisions
In accordance with IAS 37, provisions are recognised where a present obligation exists to third parties because of a
past event, where a future outflow of resources with economic benefits is probable and where a reliable estimate of
that outflow can be made. If the criteria for recognising a provision are not met, but the outflow of resources is not
remote, such obligations are disclosed in the notes to the consolidated financial statements (see note 19).
Contingent liabilities are only recognised if the obligations are more certain, i.e. the outflow of resources with
economic benefits has become probable and their amount can be reliably estimated.
Share Capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
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 2024 and 2023 the Group had no revenue.
4. Financial risk management
The Group’s activities expose it to financial risks and its overall risk management programme focuses on minimising
potential adverse effects on the financial performance of the Group. The Company’s activities are also exposed to
risks through its investments in subsidiaries and it is accordingly exposed to similar financial and capital risks as the
Group.
Risk management is carried out by the Directors, and they identify, evaluate, and address financial risks in close co-
operation with the Group’s management. The Board provides written principles for overall risk management, as well
as written policies covering specific areas, such as mitigating foreign exchange risks and investing excess liquidity.
Credit Risk
The Group’s credit risk primarily relates to its trade receivables. Responsibility for managing credit risks lies with the
Group’s management.
A debtor evaluation is typically obtained from an appropriate credit rating agency. Where required, appropriate trade
finance instruments such as letters of credit, bonds, guarantees and credit insurance will be used to manage credit
risk.
Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group
manages its liquidity through continuous monitoring of cash flows from operating activities, review of actual capital
expenditure programmes, and managing maturity profiles of financial assets and financial liabilities.
Jersey Oil and Gas plc
62
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
Capital Risk Management
The Group seeks to maintain an optimal capital structure. The Group considers its capital to comprise both equity and
net debt.
The Group monitors its capital mix needs and suitability dependent upon the development stage of its asset base.
Earlier stage assets (pre-production) typically require equity rather than debt given the absence of cash flow to service
debt. As the asset mix becomes biased towards production then typically more debt is available. The Group seeks to
maintain progress in developing its assets in a timely fashion. With the completion of the NEO Energy farm-out in
2023 and the Serica Energy farm-out during the year, the Group expects ’s that the introduction of these two industry
partners will deliver sufficient cash to progress its assets to first oil in return for a capital (equity) contribution via the
farm-outs. As the GBA development project progresses towards first oil, debt will become available and may be
sought to enhance equity returns. As at 31 December 2024 there are no borrowings within the Group (2023: Nil).
The Group monitors its capital structure by reference to its net debt to equity ratio. Net debt to equity ratio is
calculated as net debt divided by total equity. Net debt is calculated as borrowings less cash and cash equivalents.
Total equity comprises all components of equity.
Maturity analysis of financial assets and liabilities
Financial assets
2024
£
2023
£
Up to 3 months
18,798
410,011
3 to 6 months
-
-
Over 6 months
17,466
-
36,264
410,011
Financial liabilities
2024
£
2023
£
Up to 3 months
281,102
613,067
3 to 6 months
-
-
Over 6 months
-
-
281,102
613,067
Lease liabilities
2024
£
2023
£
Up to 3 months
14,585
14,585
3 to 6 months
14,585
14,585
Over 6 months
43,755
102,095
72,925
131,265
Strat Report
Jersey Oil and Gas plc
63
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
5. Employees and Directors
2024
£
2023
£
Wages and salaries
2,356,684
2,860,964
Social security costs
229,520
289,654
Share-based payments (note 20)
764,774
1,560,167
Otherpension costs
304,165
265,538
3,655,143
4,976,323
Other pension costs include employee and Group contributions to money purchase pension
schemes.
The average monthly number of employees during the year was as follows:
2024
No.
2023
No.
Directors
5
5
Employees - Finance
1
1
Employees - Technical
5
8
11
14
Directors Remuneration:
2024
£
2023
£
Directors’ remuneration
1,162,791
1,174,317
Payment in lieu of notice
14,150
-
Directors’ pension contributions to money purchase schemes
36,102
39,047
Share-based payments (note 20)
447,420
853,551
Benefits
9,377
9,585
1,669,840
2,076,500
The average number of Directors to whom retirement benefits were accruing was as follows:
2024
No.
2023
No.
Money purchase schemes
2
2
Information regarding the highest paid Director is as follows:
2024
£
2023
£
Aggregate emoluments and benefits
507,798
520,586
Share-based payments
211,884
324,902
Pensioncontributions
22,917
26,667
742,599
872,155
Our Financials
Jersey Oil and Gas plc
64
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
Key management compensation
Key management includes Directors (Executive and Non-Executive) and an adviser to the Board. The
compensation paid or payable to key management for employee services is shown below:
2024
£
2023
£
Wages and short-term employee benefits
1,186,318
1,193,901
Share-based payments (note 20)
447,420
853,551
PensionContributions
36,102
39,047
1,669,840
2,086,499
6. Net Finance Income
2024
£
2023
£
Financeincome:
Interest received
542,637
114,825
542,637
114,825
Finance costs:
Interest paid
Interest on lease liability
-
(3,185)
-
(3,503)
(3,185)
(3,503)
Net finance income
539,452
111,322
7. Loss Before Tax
The loss before tax is stated after charging/(crediting):
2024
£
2023
£
Depreciation - tangible assets
688
10,203
Depreciation - right-of-use asset
55,864
94,988
Auditors' remuneration - audit of parent company and consolidation
84,325
85,000
Auditors’ remuneration - audit of subsidiaries
- -
Auditors’ remuneration - non-audit work
-
-
Foreignexchangegain
(3,792)
(26,774)
Overview
Strategic Report
Jersey Oil and Gas plc
65
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
8. Tax
Reconciliation of tax charge
2024
£
2023
£
Loss before tax
(3,540,274)
(5,595,353)
Tax at the standard rate of 25% avg. (2023: 23.5%avg.)
(885,069)
(1,314,908)
Capital allowances in excess of depreciation
14,002
(671,854)
Expenses not deductible for tax purposes and non-taxable income
193,551
370,622
Deferredtaxassetnotrecognised
677,516
1,616,140
Total tax expense reported in the Consolidated Statement of
Comprehensive Income
–
–
No liability to UK corporation tax arose on ordinary activities for the year ended 31 December 2024, or for the year
ended 31 December 2023.
In April 2023, the rate of corporation tax rose to 25% for profits over £250,000.
The Group has not recognised a deferred tax asset due to the uncertainty over when the tax losses can be utilised. At
the year end, the usable tax losses within the Group were approximately £62 million (2023: £63 million). During the
year the Company transferred tax losses as a component of the farm out to Serica Energy.
9. 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 year.
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 ordinary earnings per share due to there being a loss recorded in the
year.
The share options (note 20) 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.
Loss attributable
to ordinary
shareholders
£
Weighted
average number
of shares
Per share
Amount
pence
Year ended 31 December 2024
Basic and Diluted EPS
Basic & Diluted
(3,540,274)
32,667,467
(10.84)
Year ended 31 December 2023
Basic and Diluted EPS
Basic & Diluted
(5,595,353)
32,557,964
(17.19)
Our Financials
Jersey Oil and Gas plc
66
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
10. Intangible assets
Exploration
costs
£
Cost
At 1 January 2023
24,548,122
Additions
1,152,860
Farm-out
(9,103,944)
At 31 December 2023
16,597,038
Additions
838,825
Farm-out
(5,519,216)
At 31 December 2024
11,916,647
Accumulated Amortisation
At 1 January 2023
175,241
Chargefor the year
–
At 31 December 2023
175,241
At 31 December 2024
175,241
Net Book Value
At 31 December 2024
11,741,406
At 31 December 2023
16,421,797
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
this stage of development (please refer to section on Acquisitions, Asset Purchases and Disposals on page 56) the
cash proceeds of £5,519,216 in 2024 and £9,103,944 in 2023 have both been 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 31 December 2024 there are not deemed to be
indicators that the licences are not commercial and that the carrying value of £11,741,406 continues to be supported
by ongoing exploration and development work on the licence areas with no impairments considered necessary. For
further information please refer to note 23, Post balance sheet events, for discussion of potential future impairment
triggers.
Jersey Oil and Gas plc
67
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
11. Property, Plant and Equipment
Computer
and office
equipment
£
Cost
At 1 January 2023
228,447
Additions
-
At 31 December 2023
228,447
Additions
2,363
At 31 December 2024
230,810
Accumulated Depreciation
At 1 January 2023
218,244
Chargefor the year
10,203
At 31 December 2023
228,447
Chargefor the year
688
At 31 December 2024
229,135
Net Book Value
At 31 December 2024
1,675
At 31 December 2023
-
12. Leases
Amounts Recognised in the Statement of financial position
2024
£
2023
£
Right-of-use Assets
Buildings
83,797
139,661
83,797
139,661
Lease liabilities
Current
56,723
55,154
Non-Current
14,585
71,309
71,308
126,463
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 2024 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. The
interest rate implicit in the agreement was 3% over the Bank of England’s base rate. 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. This
lease was in relation to an office in Jersey.
Amounts Recognised in the Statement of comprehensive income
2024
£
2023
£
Depreciation charge of right-of-use asset
Buildings
55,864
94,988
55,864
94,988
Interest expenses (included in finance cost)
(3,185)
(3,503)
Jersey Oil and Gas plc
68
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
13. Trade and other receivables
2024
£
2023
£
Current:
Other receivables
29
328,166
Value added tax
18,769
81,846
Prepayments
67,934
68,222
86,732
478,234
Included within other receivables in 2023 is an amount of £233,055 relating to monies outstanding from the exercise
of share options which was received during 2024.
14. Cash and cash equivalents
2024
£
2023
£
Cash in bank accounts
6,185,872
5,482,935
The cash balances are placed with creditworthy financial institutions with a minimum rating of ‘A’.
15. Term deposits
2024
£
2023
£
Maturing within ten months
6,150,000
5,000,000
Term deposits are placed with a creditworthy financial institution with a minimum rating of ‘A’.
16. Called up share capital
Issued:
Number:
Class
Nominal
value
2024
£
2023
£
32,667,627 (2023: 32,667,627)
Ordinary
1p
326,676
325,552
2,271,694 (2023: 2,271,694)
Deferred shares
99p
2,248,977
2,248,977
Ordinary shares have a par value of 1p. They entitle the holder to participate in dividends, distributions or other
participation in the profits of the Company in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting, in person or by proxy, is entitled to one
vote, and on a poll each share is entitled to one vote.
Included in the above 2023 ordinary shares are 1,667 which were committed to be issued at the year-end but not
allotted until January 2024.
In 2023, 113,334 new ordinary shares were issued to satisfy the exercise of share options which raised £233,053 (gross)
which was not paid at the 2023 year end and was included in other receivables. All other issued share capital was
fully paid.
17. Trade and other payables
2024
£
2023
£
Current:
Trade payables
44,028
345,814
Accrued expenses
237,075
256,283
Other payables
-
10,970
Taxation and Social Security
32,108
127,860
313,211
740,927
Jersey Oil and Gas plc
69
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
18. Lease liabilities
2024
£
2023
£
Non-Current
Lease Liabilities
14,585
71,309
14,585
71,309
19. Contingent Liabilities
(i) 2015 settlement agreement with Athena Consortium: In accordance with a 2015 settlement agreement reached
with the Athena Consortium, although Jersey Petroleum Ltd remains a Licensee in the joint venture, any past or future
liabilities in respect of its interest can only be satisfied from the Group’s share of the revenue that the Athena Oil Field
generates and up to 60 per cent. of net disposal proceeds or net petroleum profits from the Group’s interest in the
P2170 licence which is the only remaining asset still held that was in the Group at the time of the agreement with
the Athena Consortium who hold security over this asset. Any future repayments, capped at the unpaid liability
associated with the Athena Oil Field, cannot be calculated with any certainty, and any remaining liability still in
existence once the Athena Oil Field has been decommissioned will be written off. A payment was made in 2016 to
the Athena Consortium in line with this agreement following the farm-out of P2170 (Verbier) to Equinor and the
subsequent receipt of monies relating to that farm-out.
(ii) Equinor UK Limited: During 2020, JOG announced that it had entered into a conditional Sale and Purchase
Agreement (“SPA”) to acquire operatorship of, and an additional 70% working interest in Licence P2170 (Blocks 20/5b
and 21/1d) from Equinor UK Limited (“Equinor”), this transaction completed in May 2020. The consideration for the
acquisition consisted of two milestone payments, which will be accounted for in line with the cost accumulation
model, as opposed to contingent liabilities:
•
US$3 million upon sanctioning by the UK’s North Sea Transition Authority (“NSTA”) of a Field Development Plan
(“FDP”) in respect of the Verbier Field; and
•
US$5 million upon first oil from the Verbier Field.
The earliest of the milestone payments in respect of the acquisition is not currently anticipated being payable before
the start of 2028.
(iii) ITOCHU Corporation and Japan Oil, Gas and Metals National Corporation: During 2020, JOG announced that
it had entered into a conditional Sale and Purchase Agreement (“SPA”) to acquire the entire issued share capital of
CIECO V&C (UK) Limited, which was owned by ITOCHU Corporation and Japan Oil, Gas and Metals National
Corporation, this transaction completed in April 2021. The acquisition was treated as an asset acquisition rather
than a business combination due to the nature of the asset acquired. There were no assets or liabilities acquired
other than the 12% interest in licence P2170 (Verbier). The consideration for the acquisition included a completion
payment of £150k and two future milestone payments, which are considered contingent liabilities:
•
£1.5 million in cash upon consent from the UK’s North Sea Transition Authority (“NSTA”) for a Field Development
Plan (“FDP”) in respect of the Verbier discovery in the Upper Jurassic (J62-J64) Burns Sandstone reservoir located
on Licence P2170; and
•
£1 million in cash payable not later than one year after first oil from all or any part of the area which is the subject
of the FDP.
The earliest of the milestone payments in respect of the acquisition is not currently anticipated being payable before
the start of 2028.
Jersey Oil and Gas plc
70
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
20. Share based payments
The Group operates several share options schemes. Options are exercisable at the prices set out in the table below. Options
are forfeited if the employee leaves the Group through resignation or dismissal before the options vest.
Equity settled share-based payments are measured at fair value at the date of grant and expensed on a straight-line basis over
the vesting period, based upon the Group’s estimate of the number of shares that will eventually vest.
The Group’s share option schemes are for Directors, Officers and employees. The charge for the year was £764,774 (2023:
£1,560,167) and details of outstanding options are set out in the table below.
Date
of
Grant
Exercise
price
(pence)
Vesting date
Expiry date
No. of shares
for which
options
outstanding
at 1 Jan 2024
Options
issued
Options
Exercised
Options lapsed
/non vesting during the
year
No. of shares
for which
options
outstanding at
31 Dec 2024
Jan-18
200
Jan-21
Jan-25
360,000
-
-
-
360,000
Jan-18
200
Jan-18
Jan-23*
56,666
-
-
(56,666)
-
Jan-18
200
Jan-19
Jan-23*
56,667
-
-
(56.667)
-
Jan-18
200
Jan-20
Jan-23*
56,667
-
-
(56,667)
-
Nov-18
172
Nov-21
Nov-25
150,000
-
-
-
150,000
Jan-19
175
Jan-20
Jan-26
88,333
-
-
-
88,333
Jan-19
175
Jan-21
Jan-26
88,333
-
-
-
88,333
Jan-19
175
Jan-22
Jan-26
68,333
-
-
-
68,333
Jan-19
175
Jan-20
Jan-24
11,667
-
-
(11,667)
-
Jan-19
175
Jan-21
Jan-24
11,667
-
-
(11,667)
-
Jan-19
175
Jan-22
Jan-24
11,667
-
-
(11,667)
-
Jun-19
200
Jan-21
Jun-29
120,000
-
-
-
120,000
Jun-19
110
Jun-19
Jun-29
40,000
-
-
-
40,000
Jan-21
155
Jan-22
Jan-28
83,333
-
-
-
83,333
Jan-21
155
Jan-23
Jan-28
75,000
-
-
-
75,000
Jan-21
155
Jan-24
Jan-28
60,000
-
-
-
60,000
Mar-21
210
Mar-22
Mar-26
11,666
-
-
-
11,666
Mar-21
210
Mar-23
Mar-26
11,667
-
-
-
11,667
Mar-21
210
Mar-24
Mar-26
11,667
-
-
-
11,667
Mar-21
210
Mar-22
Mar-28
130,001
-
-
-
130,001
Mar-21
210
Mar-23
Mar-28
86,666
-
-
-
86,666
Mar-21
210
Mar-24
Mar-28
78,333
-
-
-
78,333
Nov-21
147
Nov-22
Nov-28
233,334
-
-
-
233,334
Nov-21
147
Nov-23
Nov-28
233,333
-
-
-
233,333
Nov-21
147
Nov-24
Nov-28
233,333
-
-
-
233,333
Apr-22
230
Apr-23
Apr-29
278,333
-
-
-
278,333
Apr-22
230
Apr-24
Apr-29
268,333
-
-
-
268,333
Apr-22
230
Apr-25
Apr-29
268,333
-
-
(8,333)
260,000
Apr-22
230
Apr-23
Apr-27
45,000
-
-
-
45,000
Apr-22
230
Apr-24
Apr-27
45,000
-
-
-
45,000
Apr-22
230
Apr-25
Apr-27
45,000
-
-
-
45,000
Apr-23
247.5
Apr-24
Apr-30
169,167
-
-
-
169,167
Apr-23
247.5
Apr-25
Apr-30
169,167
-
-
(5,833)
163,334
Apr-23
247.5
Apr-26
Apr-30
169,166
-
-
(5,833)
163,333
Apr-23
247.5
Apr-24
Apr-28
28,334
-
-
-
28,334
Apr-23
247.5
Apr-25
Apr-28
28,333
-
-
-
28,333
Apr-23
247.5
Apr-26
Apr-28
28,333
-
-
-
28,333
Total
3,685,832
*The share options issued in January 2018 had their expiry dates extended due to the Company being in several close periods whereby according to the scheme rules
the options were unable to be exercised. The amended expiry date for these options was 29 January 2024 with the remaining outstanding balances expiring on this
date.
Jersey Oil and Gas plc
71
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
There were no share option awards during the year. The weighted average remaining contractual life for all share option
schemes was 3 years (2023: 4 years). During the year, 170,000 of the January 2018 issuance of share options that had an
exercise price of 200 pence which had previously had their expiry date extended (to January 2024 from January 2023 due to
being in several close periods), expired, as did a further 35,000 of share options with an exercise price of 175 pence from the
January 2019 issuance. A further 20,000 share options were forfeited due to the departure of employees, these had a
weighted exercise price of 240 pence. The weighted average exercise price for all outstanding options at 31 December 2024
was 200 pence. For details of the schemes and scheme rules, please refer to the Remuneration Report.
21. Related undertakings and ultimate controlling party
The Group and Company do not have an ultimate controlling party or parent Company.
Subsidiary
% owned
Country of
Incorporation
Principal
Activity
Registered
Office
JerseyNorthSeaHoldingsLtd
100%
England&Wales
Non-Trading
1
Jersey Petroleum Ltd
100%
England&Wales
OilExploration
1
Jersey V&C Ltd
100%
England&Wales
OilExploration
1
Sunny Day 123 Ltd*
100%
England&Wales
OilExploration
4
Jersey E & P Ltd**
100%
Scotland
Non-Trading
2
JerseyOilLtd**
100%
Scotland
Non-Trading
2
Jersey Exploration Ltd**
100%
Scotland
Non-Trading
2
Jersey Oil & Gas E & P Ltd
100%
Jersey
Management
services
3
*Dissolved 25 February 2025
**Dissolved 11 February 2025
Registered Offices
1.
71-75 Shelton Street, Covent Garden, London WC2H 9JQ
2. 7 Queen’s Gardens, Aberdeen, Scotland AB15 4YD
3.
First Floor, Tower House, La Route es Nouaux, St Helier, Jersey JE2 4ZJ
4.
10, The Triangle, NG2 Business Park Nottingham, Nottinghamshire NG2 1AE
22. Notes to the consolidated statement of cash flows
Reconciliation of Loss Before Tax to Cash Used in Operations
2024
£
2023
£
Loss for the year before tax
(3,540,274)
(5,595,353)
Adjusted for:
Depreciation
688
10,203
Depreciation right-of-use asset
55,864
94,988
Share-based payments
764,774
1,560,167
Finance costs
3,185
3,503
Finance income
(542,637)
(114,825)
(3,258,400)
(4,041,317)
(Increase)/decrease in trade and other receivables
428,691
(109,685)
Decrease in trade and other payables
(530,054)
(34,047)
Cash usedin operations
(3,359,763)
(4,185,049)
Overview
Strategic Report
Jersey Oil and Gas plc
72
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
Cash and cash equivalents
The amounts disclosed on the consolidated Statement of Cash Flows in respect of Cash and cash equivalents are in respect of
these statements of financial position amounts:
Year ended 2024
31 Dec 2024
£
01 Jan 2024
£
Cashandcashequivalents
6,185,872
5,482,935
Year ended 2023
31 Dec 2023
£
01 Jan 2023
£
Cashandcashequivalents
5,482,935
6,579,349
Analysis of net cash
At 1 Jan 2024
£
Cash inflow
£
At 31 Dec 2024
£
Cashandcashequivalents
5,482,935
702,937
6,185,872
Net cash
5,482,935
702,937
6,185,872
Jersey Oil and Gas plc
73
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
23. Post balance sheet events
As highlighted in note 10, the Directors assessed that there were no conditions of impairment as at 31 December 2024.
Post year end, on 7 March 2025, the Company reported that Dana Petroleum ("Dana") had terminated the agreement
with the Buchan Horst ("Buchan") Operator, NEO Energy, in relation to the proposed purchase of the Western Isles
floating, production, storage and offloading ("FPSO") vessel. This followed the agreement having reached its longstop
date at the end of February 2025. The Buchan joint venture's ability to recommit to the acquisition of the FPSO is
naturally linked to the satisfactory conclusion of the on-going fiscal and regulatory consultations and completion of
the required pre-handover works on the vessel. In addition, the Brent oil price dropped below its previous 18-month
range of $70-90 in Q2 2025 following the introduction of the US ‘Trump Tariffs’. Both events will be considered in the
2025 reporting period as to whether either constitute an impairment trigger and consequently whether either will
result in an impairment on the current carrying value of the Buchan field.
24. Availability of the annual report 2024
A copy of this report 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.
Jersey Oil and Gas plc
74
Contents for the Company Financial Statements
For year ended 31 December 2024
Pages
Company Statement of Financial Position
75
Company Statement of Changes in Equity
76
Notes to the Company Financial Statements
77
Overview
Strategic Report
Our Governance
Our Financials
Jersey Oil and Gas plc
75
COMPANY STATEMENT OF FINANCIAL POSITION
As at 31 December 2024
Note
2024
£
2023
£
Non-current assets
Investments in subsidiaries
4
-
-
Property, plant and equipment
5
-
-
Right-of-use assets
6
-
-
-
-
Current assets
Trade and other receivables
7
102,714
377,091
Cashandcashequivalents
8
6,038,124
4,520,924
Term deposits
9
6,150,000
5,000,000
12,290,838
9,898,015
Total assets
12,290,838
9,898,015
Equity
Called up share capital
10
2,574,529
2,574,529
Share premium account
110,535,059
110,535,059
Share options reserve
4,504,668
3,890,981
Accumulated losses
(112,783,418)
(112,653,103)
Total equity
4,830,838
4,347,466
Non-current liabilities
Lease liabilities
6
-
-
Current liabilities
Trade and other payables
11
7,460,000
5,550,549
Lease liabilities
6
-
-
Total liabilities
7,460,000
5,550,549
Total equity and liabilities
12,290,838
9,898,015
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent
Company is not presented as part of these financial statements. The parent Company’s loss for the year was £281,402
(2023: Loss of £35,265,078).
The financial statements on pages 75 and 76 were approved by the Board of Directors and authorised for issue on 27 May
2025. They were signed on its behalf by Graham Forbes – Chief Financial Officer.
Graham Forbes
Chief Financial Officer
27 May 2025
Company Registration Number: 07503957
The notes on pages 77 to 82 are an integral part of these financial
statements
Jersey Oil and Gas plc
76
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2024
Called up
share
capital
£
Share
premium
account
£
Share
options
reserve
£
Accumulated
losses
£
Total
equity
£
At 1 January 2023
2,573,395
110,309,524
2,566,338
(77,623,549)
37,825,708
Totalcomprehensivelossforthe
year
–
–
–
(35,265,078)
(35,265,078)
Transactions with owners in their
capacity as owners
Issue of share capital
1,134
225,535
–
–
226,669
Lapsed share options
–
–
(148,178)
148,178
–
Exercised share options
–
–
(87,346)
87,346
–
Transactions with owners (share-
based payments)
–
–
1,560,167
–
1,560,167
At 31 December 2023
2,574,529
110,535,059
3,890,981
(112,653,103)
4,347,466
Totalcomprehensivelossforthe
year
–
–
–
(281,402)
(281,402)
Transactions with owners in their
capacity as owners
Lapsed share options
–
–
(151,087)
151,087
–
Transactions with owners (share-
based payments)
–
–
764,774
–
764,774
At 31 December 2024
2,574,529
110,535,059
4,504,668
(112,783,418)
4,830,838
The following describes the nature and purpose of each reserve:
Reserve
Description and purpose
Called up share
capital
Represents the nominal value of shares issued
Share premium
account
Amountsubscribedforshare capitalinexcessofnominal value
Share options reserve Representstheaccumulatedbalanceofshare-basedpaymentchargesrecognisedinrespectof
share options granted by the Company less transfers to accumulated deficit in respect of
options exercised or cancelled/lapsed
Accumulated losses
Cumulative net gains and losses recognised in the profit and loss and other comprehensive income
or loss
The notes on pages 77 to 82 are an integral part of these financial
statements
Overview
Our Financials
Jersey Oil and Gas plc
77
Notes to the Company Financial Statements
For the year ended 31 December 2024
1. Significant accounting policies
The financial statements of Jersey Oil and Gas Plc have been prepared in accordance with Financial Reporting
Standard 101, ‘Reduced Disclosure Framework’ (FRS 101). In preparing these financial statements, the Company
applies the recognition, measurement and disclosure requirements of International Financial Reporting Standards as
adopted by the UK (UK-adopted international accounting standards) but makes amendments where necessary in
order to comply with the Companies Act 2006 and to take advantage of FRS 101 disclosure exemptions.
The material accounting policies adopted are consistent with those set out in note 2 to the consolidated financial
statements. The financial risk management strategy for the Company is consistent with that set out in note 4 to the
consolidated financial statements. These policies have been consistently applied to all the periods presented, unless
otherwise stated.
The Company is a qualifying entity for the purposes of FRS 101. The application of FRS 101 has enabled the Company
to take advantage of certain disclosure exemptions that would have been required had the Company adopted IFRS
in full. The disclosure exemptions adopted by the Company are as follows:
The following exemptions from the requirements of IFRS have been applied in the preparation of these financial
statements, in accordance with FRS 101:
Paragraphs 45(b) and 46 to 52 of IFRS 2, ‘Share-based payment’ (details of the number and weighted
average exercise prices of share options, and how the fair value of goods or services received was
determined).
IFRS 7, ‘Financial instruments: Disclosures’.
Paragraphs 91 to 99 of IFRS 13, ‘Fair value measurement’ (disclosure of valuation techniques and inputs used
for fair value measurement of assets and liabilities).
Paragraph 38 of IAS 1, 'Presentation of financial statements' – comparative information requirements in
respect of:
o
paragraph 79(a)(iv) of IAS 1; and
o
paragraph 73(e) of IAS 16, 'Property, plant and equipment';
The following paragraphs of IAS 1, ‘Presentation of financial statements’:
o
10(d) (statement of cash flows);
o
16 (statement of compliance with all IFRS);
o
38A (requirement for minimum of two primary statements, including cash flow statements);
o
38B-D (additional comparative information);
o
111 (statement of cash flows information); and
o
134-136 (capital management disclosures).
IAS 7, ‘Statement of cash flows’.
Paragraphs 30 and 31 of IAS 8, ‘Accounting policies, changes in accounting estimates and errors’
(requirement for the disclosure of information when an entity has not applied a new IFRS that has been
issued but is not yet effective).
Paragraph 17 of IAS 24, ‘Related party disclosures’ (key management compensation).
The requirements in IAS 24, ‘Related party disclosures’, to disclose related party transactions entered into
between two or more members of a group.
Jersey Oil and Gas plc
78
Notes to the Company Financial Statements
For the year ended 31 December 2024
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 financial statements. The Group has cash reserves following the successful farm-out of the
GBA licences and receipt of initial funds resulting from the two transactions with NEO and Serica. The Group now
has a fully funded 20% interest in the on-going Buchan redevelopment project. Other work that the Group is
undertaking in respect of the GBA licenses and surrounding areas is modest relative to its current cash reserves. As
part of its financial position, the Group has a £7.3 million payable to other companies within the Group. This
intercompany liability does not impact the Group’s consolidated cash position and is not expected to affect the
Group’s ability to meet its obligations as they fall due. 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 financial statements. Even in a scenario where the Buchan redevelopment did not progress for any
unforeseen reason and any future instalment payments were not realised the Group already has in place a cost
structure and expenditure profile that enables the business to continue 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 the farm-outs 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 consolidated financial statements.
Risk management
The Company’s activities expose it to financial risks and its overall risk management programme focuses on minimising
potential adverse effects on the financial performance of the Company. The Company’s activities are also exposed to
risks through its investments in subsidiaries and it is accordingly exposed to similar financial and capital risks as the Group.
Risk management is carried out by the Directors, and they identify, evaluate and address financial risks in close co-
operation with the Company’s management. The Board provides written principles for overall risk management, as
well as written policies covering specific areas, such as mitigating foreign exchange risks and investing excess liquidity.
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity through continuous monitoring of cash flows from operating activities, review of actual
capital expenditure programmes, and managing maturity profiles of financial assets and financial liabilities.
2. Employees and directors
2024
£
2023
£
Wages and salaries
1,650,688
2,110,259
Social security costs
212,309
270,036
Share based payments
764,774
1,560,167
Otherpensions costs
266,398
219,753
2,894,169
4,160,215
Other pension costs include employee and Company contributions to money purchase pension schemes. The
average monthly number of employees during the year was as follows:
2024
2023
Directors
4
4
Employees – Finance
1
1
Employees – Technical
5
6
10
11
For details relating to the remuneration for the Directors and highest paid Director please refer to note 5 of the
consolidated financial statements.
Jersey Oil and Gas plc
79
Notes to the Company Financial Statements
For the year ended 31 December 2024
3. Loss of parent company
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent
Company is not presented as part of these financial statements.
The parent Company’s loss for the year was £281,402 (2023: Loss of £35,265,078).
Auditors’ remuneration is disclosed in note 7 in the consolidated financial statements.
4. Investment in subsidiaries
2024
£
2023
£
Company – shares in subsidiary undertakings:
–
–
Following the waiver of the intercompany balance owed by Jersey Petroleum Limited by way of a deed or forgiveness
in 2023, £27.5m was capitalised as an investment in subsidiary then subsequently impaired due to a doubt in
recoverability.
The subsidiary undertakings at 31 December 2024 were as
follows:
Subsidiary
% owned
County of
Incorporation
Principal Activity
Jersey North Sea Holdings Ltd*
100%
England&Wales
Non-Trading
Jersey Petroleum Ltd*
100%
England&Wales
OilExploration
Jersey V&C Ltd*
100%
England&Wales
OilExploration
Sunny Day 123 Ltd****
100%
England&Wales
OilExploration (Dissolved 25 Feb 2025)
Jersey E & P Ltd**
100%
Scotland
Non-Trading (Dissolved 11 Feb 2025)
Jersey Oil Ltd**
100%
Scotland
Non-Trading (Dissolved 11 Feb 2025)
Jersey Exploration Ltd**
100%
Scotland
Non-Trading (Dissolved 11 Feb 2025)
Jersey Oil & Gas E & P Ltd***
100%
Jersey
Management services
*
Registered address: 71-75 Shelton Street, Covent Garden, London WC2H 9JQ
** Registered address: 7 Queen’s Gardens, Aberdeen, Scotland AB15 4YD
*** Registered address: First Floor, Tower House, La Route es Nouaux, St Helier, Jersey, JE2 4ZJ
**** Registered address: 10 The Triangle, NG2 Business Park, Nottingham, Nottinghamshire NG2 1AE
5. Property, plant and equipment
Office
equipment
£
Cost
At 1 January 2024
178,960
At 31 December 2024
178,960
Accumulated depreciation
At 1 January 2024
178,960
Charge foryear
-
At 31 December 2024
178,960
Net book value
At 31 December 2024
-
At 31 December 2023
-
Jersey Oil and Gas plc
80
Notes to the Company Financial Statements
For the year ended 31 December 2024
6. Right-of-use Assets
Amounts Recognised in the Statement of financial position
2024
£
2023
£
Right-of-use assets
Buildings
-
-
-
-
Lease liabilities
Current
-
-
Non-Current
-
-
-
-
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 September 2023 with a lease end date of September 2024 this had a
rolling 3-month notice clause, this was in relation to the London office, 3 months’ notice on this lease was served in
January 2024. The lease was treated as a short-term lease and not a right-of-use asset.
Amounts Recognised in the Statement of comprehensive income
2024
£
2023
£
Depreciation charge of right-of-use asset
-
45,649
Buildings
-
45,649
Interest expenses (included in finance cost)
-
(410)
Jersey Oil and Gas plc
81
Notes to the Company Financial Statements
For the year ended 31 December 2024
7. Trade and other receivables
2024
£
2023
£
Current:
Other receivables (net)
-
233,054
Value Added Tax
17,436
79,862
Amounts due from Group undertakings
-
-
Prepayments
67,812
61,483
Deposits
17,466
2,692
102,714
377,091
On 19 May 2023, the Company waived the balance owed by Jersey Petroleum Limited as at 31 March 2023 totalling
£97,253,142 by way of a deed of forgiveness.
The balances in previous years were assessed for recoverability under the expected credit loss model and amounts
due from Group undertakings are stated net of losses of £69,800,211. The amounts due from Group undertakings
are unsecured, non-interest bearing, have no fixed date of repayment and are repayable on demand.
8. Cash and cash equivalents
2024
£
2023
£
Cash at bank
6,038,124
4,520,924
Cash deposits are placed with creditworthy financial institutions with a minimum rating of ‘A’.
9. Term deposits
2024
£
2023
£
Maturing within ten months
6,150,000
5,000,000
Term deposits are placed with creditworthy financial institutions with a minimum rating of ‘A’.
10. Called up share capital
Issued:
Number:
Class
Nominal
value
2024
£
2023
£
32,667,627 (2023: 32,667,627)
Ordinary
1p
326,676
325,552
2,271,694 (2023: 2,271,694)
Deferred shares
99p
2,248,977
2,248,977
Ordinary shares have a par value of 1p. They entitle the holder to participate in dividends, distributions or other
participation in the profits of the Company in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting, in person or by proxy, is entitled to one
vote, and on a poll each share is entitled to one vote.
Included in the 2023 ordinary shares of 1,667 which were committed to be issued at the year-end but not allotted
until January 2024.
Jersey Oil and Gas plc
82
Notes to the Company Financial Statements
For the year ended 31 December 2024
11. Trade and other payables
2024
£
2023
£
Current:
Amounts due to Group undertakings
7,295,614
5,192,160
Trade payables
14,443
96,135
Other payables
32,108
130,914
Accrued expenses
117,835
131,340
7,460,000
5,550,549
Amounts shown as Current: Amounts owed to Group undertakings are unsecured, interest bearing, have no fixed date of
repayment and are repayable on demand.
12. Post balance sheet events
For all Group related post balance sheet events please see note 23 of the consolidated financial statements.
Jersey Oil and Gas plc
Ground Floor
5 St Andrew’s Place
St Helier, Jersey Channel Islands
JE2 3RP
+44(0)1534 858 622