-Jersey Oil & Gas PLC on Wednesday said its loss narrowed during 2022 and that it looks forward to ‘unlocking’ the value of its Greater Buchan Area development project as it moves towards production.

The UK continental shelf-focused upstream oil and gas company reported a £3.1 million pretax loss in 2022, narrowing from a £4.2 million loss the previous year. It reported no revenue for the period.

Jersey Oil & Gas said its cash and equivalents balance was £6.6 million at December 31, down 50% from £13.0 million at the same time one year prior.

The company’s rported no sales cost in 2022, compared to a £101,079 hit the year prior. Its losses in 2021 also included a £447,812 exploration write-off or licence relinquishment which was not repeated in 2022.

Its administrative expenses meanwhile decreased 13% to £3.2 million in 2022 from £3.7 million the prior year. Finance expenses also decreased 22% to £4,730 from £6,098.

Jersey Oil & Gas also announced in April that it had agreed to farm-out a 50% interest in its GBA licences to NEO Energy Ltd for a total of $28.9 million in cash payments, 12.5% carry of the field development costs and carry for Jersey Oil & Gas’s 50% share of the estimated $25 million field development plan costs. The company said NEO was ‘a technically and financially strong partner to move the GBA development forwards into production’.

Jersey Oil & Gas expects the farm-out to be completed by the end of the second quarter, and said the transaction would provide ‘significant value’ by securing a fully-funded position through to FDP submission and by increasing the likelihood of monetising the GBA resources in future.

The company also said its cash balance left it ‘well positioned’ and would be enhanced by the farm-out payments it will receive from NEO. It will continue to prioritise pursuing its corporate growth strategy though the execution of accretive acquisitions.

‘2022 was an instrumental year in securing the future success of the company,’ said Chief Executive Officer Andrew Benitz. ‘The GBA is a high-quality re-development, which is on track to generate significant value for the company and its shareholders.

‘With the route for execution of the development programme now firmly established, the company looks forward to unlocking the many value catalysts that mark the run up to approval of the project and beyond.’

Shares in Jersey Oil & Gas were down 0.9% at 228.00 pence in London on Wednesday.

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