Jersey Oil and Gas “fully funded” to advance Greater Buchan project

Jersey Oil and Gas PLC told investors it is fully funded as it continues to progress the Greater Buchan Area (GBA) field development, which will be concept selection work.

In a statement addressing market weaknesses in light of the coronavirus (COVID-19) pandemic, the company said that it has no debt and, on current plans, it has sufficient working capital through to the end of 2021.

This comes before the company factors in any proceeds from an envisaged partial sale of project equity in the GBA, for which the process is intended later this year.

Jersey noted that it had £12.3mln cash at the end of December.

Giving its outlook amid challenging market conditions, Jersey said that “while it would be inappropriate to describe the situation as 'business as usual', we continue to work on the various workstreams required to achieve our stated goals and create long term shareholder value,  including advancing concept select for the GBA development which remains on track for delivery this summer."

It added: “Given the nature of our current workstreams these can mostly be completed remotely by our team and contractors and therefore we have set up business continuity measures to enable our team to work from home to  ensure that the safety of those in our employ remains a top priority.”

Source: Proactive Investors