Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, is pleased to announce its intention to undertake a fundraising of, in aggregate, up to GBP15 million (gross) by way of a placing of, and a subscription by certain of the Company's directors for, new Ordinary Shares.
In addition, the Company intends to launch an offer to Qualifying Participants to raise up to a further GBP2 million (gross) (the 'Offer', together with the Placing and the Subscription, the 'Fundraising') at the Issue Price.
The Placing will be effected by way of an accelerated bookbuild (the 'Bookbuild') at a price of 165p (the 'Issue Price') per Placing Share. The Bookbuild will open with immediate effect following release of this Announcement. A further announcement confirming the closing of the Bookbuild and the number of new Ordinary Shares to be issued pursuant to the Placing is expected to be made in due course.
Andrew Benitz, Vicary Gibbs, Ronald Lansdell and Marcus Stanton (the 'Participating Directors') have indicated their intention to subscribe for up to GBP60,000 in aggregate for up to 36,361 new Ordinary Shares at the Issue Price. Further details of such Subscription by the Participating Directors will be set out in the announcement to be made following closure of the Bookbuild.
Following the successful completion of the Fundraising, and in consideration of the strong performance of the Company, the Remuneration Committee is minded to make a grant of options under the Jersey Oil and Gas plc 2016 Enterprise Management Incentive and Unapproved Share Option Plan, within the terms of the schemes.
Completion of the Placing and Subscription is subject, inter alia, to Shareholder approval of the Resolutions to authorise the issue of the Placing Shares and Subscription Shares, which will be sought at a General Meeting of the Company to be held at 10.00 a.m. on 14 April 2021.
A Circular containing further details of the Fundraising including a formal Notice convening the General Meeting is expected to be despatched to Shareholders on or around 29 March 2021 and will thereafter be available on the Company's website at www.jerseyoilandgas.com.
The Offer
It is proposed that the Offer will comprise an offer to Qualifying Participants of Offer Shares with the aggregate consideration to be received by the Company limited to GBP2 million, being the Offer Maximum. Qualifying Participants can apply for as many Offer Shares as they wish. However, the Directors reserve the right to exercise their absolute discretion (with the agreement of the Joint Brokers) in the allocation of successful applications, including, without limitation, to ensure that no Offer Shares are issued so as to exceed the Offer Maximum.
It is proposed that the Offer will only be available to Qualifying Participants and, save as set out in the preceding paragraph, there is no maximum or minimum subscription per Applicant. No Qualifying Participant may subscribe for Offer Shares in excess of the Offer Maximum and multiple applications may be submitted. Qualifying Participants who are joint Shareholders may only apply for Offer Shares as joint Applicants. A Circular will be posted on or around 29 March 2021, containing, inter alia, details of the Offer. In order to apply for Offer Shares, Qualifying Participants should complete the Application Form in accordance with the instructions to be set out therein and in the Circular. A further announcement setting out timings in respect of the Offer will be made in due course.
The Offer is not being underwritten. The Application Form and accompanying procedure for application will set out, in detail, how Qualifying Participants may participate in the Offer.
Background to and reasons for the Fundraising
On 3 March 2021, the Company announced the key findings of its Concept Select Report in respect of its Greater Buchan Area ('GBA') development project, which set out a three-phase development approach centred around a single integrated wellhead, production, utilities and quarters platform located at the Buchan field - the GBA hub. The development concept is based on P50 technically recoverable resource estimates of, in aggregate, 172 million barrels of oil equivalent ('MMboe') of light sweet crude and associated gas within the core GBA, which includes the Buchan oil field and J2 and Verbier oil discoveries.
Jersey Oil & Gas aims to deliver production from the planned GBA development project at an industry leading carbon intensity level due to platform electrification, as seen in certain fields in the Norwegian sector. Overall carbon emissions from the proposed GBA development with platform electrification are estimated by management at
JERSEY OIL AND GAS PLC 
