Jersey Oil & Gas (LSE:JOG) set out its outlook for 2026 following the UK Government’s conclusion of regulatory and fiscal consultations, which clarified environmental requirements and confirmed that the Energy Profits Levy will remain in place until 2030, to be followed by the Oil and Gas Price Mechanism. The company said the resulting framework provides improved visibility and supports long-term investment planning through the end of the decade.
Against this backdrop, Jersey Oil & Gas is working with operator NEO Energy and partner Serica Energy to refine the development concept for the Buchan field. This includes reassessing the previously preferred Western Isles FPSO against alternative production solutions, as well as updating the project’s Environmental Impact Assessment to incorporate Scope 3 emissions. The partners are seeking to optimise capital efficiency and project robustness ahead of key development milestones.
Within the wider Greater Buchan Area, the joint venture has partially relinquished higher-risk acreage on licence P2170, reducing associated fees by around 40%. At the same time, plans are in place to apply for extensions to the second term of licences P2498 (Buchan) and P2170 as work continues toward Field Development Plan approval.
Strategically, Jersey Oil & Gas said it remains focused on unlocking value from its existing Greater Buchan Area assets, while also pursuing selective acquisitions that could add cash flow and diversification. The group highlighted its ability to utilise more than £100 million of UK tax allowances, supported by a lower cost base, year-end 2025 cash of approximately £11 million, no debt, and a fully carried 20% share of Buchan development costs. In addition, the company is due to receive a further US$20 million cash payment on FDP approval.
Despite these strategic positives, the outlook continues to be constrained by weak financial performance, with no current revenue, ongoing losses and continued cash burn. These pressures are partly offset by a conservative balance sheet and some year-on-year improvement. Technical indicators remain mixed, while valuation support is limited by negative earnings and the absence of dividend metrics.
More about Jersey Oil & Gas
Jersey Oil & Gas plc is an independent upstream oil and gas company focused on exploration and development activities on the UK Continental Shelf. Its core assets are located in the Greater Buchan Area of the North Sea, where it is progressing the Buchan development alongside partners NEO Energy and Serica Energy, while leveraging UK tax allowances to support long-term value creation.
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