Menu
Close

Jersey Oil and Gas - North Sea Oil

lse:jog

#21

Arden have increased their Target Price for JOG to 550p a share from 450p a share following this extra license award.

They assumed that the newly awarded license will also see JOG give 50% to Equinor and so included just 50% of the new license into their NAV modelling.

Anyway, their new NAV are :

Risked NAV now 597p a share and unrisked NAV 1352p a share (these NAV values based on long term oil price of 65 US$ per barrel)

Unrisked 1352p a share after the 50% Equinor option take up (or as we stand now 2704p a share 100% owned)

.


#22

#23

…“someones summary of JOG”…??

…mine actually, Pro_S2009…I don’t mind at all btw; glad to see JOG get some coverage, even on here. Everyone’s abandoned ship!

Not sure how far you can go back now on ii but TRAP was an interesting story and my posts go back a long way if you’re interested. The shares I bought in JOG at 8p turned out to be a good buy. As did multi buys at between 10p and about 35p Sept 15 through to about March or April 2016. I also subscribed in all the placings. Top slicing at 375p+ (it wasn’t there for long) got me a decent holding in SQZ as well, so I owe a lot to JOG. I’m presently holding more than I’ve ever held after ditching CLNR and putting 2/3rds of the proceeds into JOG (in the 60s) and the rest into SQZ at around the current price. SQZ is a long way below fair value too imv - it’s full of cash and adding a lot more daily. They’ll buy something soon but I’m not quite sure what!!

It’s nice to get a few decisions right for once. You know the value I see in JOG - it wouldn’t imv be overvalued at 5x the present price, although there’s uncertainty over how ownership of JOG’s proven resources will pan out, which I suppose will put some people off. I’d like to see commonality of ownership between the P2170 partners across the 5 GBA licences, which would hopefully get JOG to first oil without too much dilution and leave it with plenty of cash. Wdik? The directors are incredibly switched on in this regard and want to see the shares even more tightly held than they already are, I’d wager.

I’m looking forward to JOG telling an invited audience (or more) in London early in Q4 exactly what they’ve got and what they intend to do with it. One or two institutions (hopefully well informed and a bit more patient than the clowns in Schroders & L&G) buying into JOG’s story would change the dynamics and probably result in a sharp price increase that hopefully could be maintained instead of sold into by weak holders, many of whom I hope have now gone.

It must be one of the biggest anomalies in the history of the markets that JOG, with discovered and proven to flow reserves in the NS of 120mmboe, hundreds of millions of barrels prospective and £10m+ in cash has a market cap of about $45m, whilst UKOG, with the square root of f*** all, has a m/c of $65m. Tells you how uninformed most of those making up the market must be.

But we already knew that…

GL - eagle (aka dick)


#24

Hi Dick,

Yes, it is most strange. I am guessing its just the wrong time of the year (institutional holidays) and everyone is waiting for Equinor to rubber stamp the project.

Equinor farming in along with everyone back from summer holidays should see plenty of buying and perhaps then JOG will rerate upwards to more where it should be. At this moment in time should be over 500p…that it is not just represent a massive bargain.


#25

Arden Flash Update on JOG in the link below (PDF file)

http://s000.tinyupload.com/?file_id=02961162995959236408

.


#26

IC Buy rec for JOG

.


#27

#28

3 September 2019
Jersey Oil and Gas* (JOG LN) – Arden note released
Buy, Current Price: 239p Target Price: 550p

Key Points: JOG recently announced the award of substantial new assets in the UK North Sea. This note maps out the newsflow we would expect this to generate as the company moves towards development, while also laying out a series of valuation scenarios. This all well supports our Buy recommendation and 550p price target.

Significant asset additions. JOG recently announced 100% award of the Buchan oil field and Buchan Andrew, J2 and Glenn oil discoveries. These contain gross mean contingent resources of 119mmboe – a huge uplift on JOG’s existing Verbier 5mmboe net 2C position.

Buchan is development ready. Buchan is an existing field with all the required data to be redeveloped: JOG is now beginning to work on a new field development plan.

Share price not yet fully reflecting new assets. JOG shares have already made significant gains. Our modelling indicates that they are still substantially undervaluing the new asset position, however.

Way forward to help demonstrate veracity of new asset value. There are a number of waypoints over the coming months and years that should help demonstrate JOG’s asset value, including development plan submission (mid-2021), potential farm out (50% option granted to Equinor expires in Q4 2019; numerous other potential partners otherwise), completion of funding and FID, and first oil (targeted for 2024). We could also see further P2170 drilling in 2020.

Our modelling shows a wide range of potential valuations. This note includes a number of modelled scenarios for JOG’s assets, and we also look at UK North Sea transaction multiples. Our base case returns a JOG risked NAV of 597p, but our overall range runs from 292p to 2,664p.

Buy recommendation, 550p target. Going forward we expect the outcome of the Equinor option, new JOG CPRs, confirmation of the 2020 P2170 work programme, potential 2020 drilling and periodic Buchan development planning updates. This, alongside the underlying asset value, supports our Buy recommendation and 550p target.


#29

The conclusion from the new Arden note makes interesting reading. For the first time they mention potential farm out.

So the news flow to get the JOG price up to a more proper nigher value is… Equinor deal, farm out, CPR’s and p2170 update and drilling program news…all possibly in the final months of 2019 it seems. Loads of news ahead.

Conclusion

The award of Buchan,J2 and Glenn is a very substantial event for JOG, transforming asset value and the company’s activity schedule going forward. The various valuations that we have set out above show a very wide potential range, but even the lowest of all of these, at 292p, is materially above current levels. As such, we are of the view that the value of the asset awards is yet to be fully appreciated by the market.

The route to realising a greater portion of the value of JOG’s assets is also set out above, and includes progression of the development plan, potential farm out, new CPRs and clarity on the 2020/21 P2170 work programme in the coming months. This should then be followed by further development planning progress,potential P2170 drilling in 2020 and potential drilling on the new exploration assets, alongside the ever-present possibility of production acquisitions.

The substantial discount to our base case risked NAV, combined with the upcoming newsflow, supports our Buy recommendation and 550p target price.


#30

The various valuations scenarios for JOG by Arden:

.


#31

For your weekend reading.

21 page September 2019 note on JOG by Arden.

.


#32

DNO looking to buy North Sea development and production assets.

.


#33

So events moving forward.

JOG have a Capital Markets Day event in London on 8th October. What new info is going to be released before then or on that day in an RNS ahead of the presentations ?

Equinor quarterly update due 24th October (which means they will be having a board meeting earlier in October).

3 months option for Equinor entering into the deal with JOG, also ends during the week ending Friday 25th October.

October is going to be fun :slight_smile:


#34

News out today with formal completion of licensing.

Also a brand new Corporate Presentation released :

.


#35

Arden Partners flash update on JOG following todays news:

.


#36

Jersey Oil & Gas

JOG interims this morning which show no surprises but the CEO makes a number of key points ahead of the upcoming Capital Markets Day. Cash is at £15.5m at period end and whilst there a number of modest calls on the balance sheet upcoming the company is strongly placed at the moment.

JOG has had a very busy time recently and best described by CEO Andrew Benitz ‘the period has been transformational as the company has begun work on a full re-evaluation of the P2170 Licence Area and after significant effort and investment JOG was awarded 100% WI and operatorship of 4 blocks in the Greater Buchan Area’. It is worth noting that Equinor is still contemplating its option to back-in before 22nd October.

There is potentially massive upside for this area where the CNS can still deliver a sizeable JOG operated hub. With this potential and the company gearing up with key personnel ahead of the programme the company is a very exciting prospect. The Capital Markets Day on the 8th October will be worth listening to as the company delivers its plans and work programme ahead and shareholders should very much look forward to it. A leader in the Bucket list and likely to remain so…

.


#37

Arden update on JOG after the interims.

.


#38

Following todays CPR and other news Arden increase target price to 600p

Flash note in the link below:

.


#39

9th October interview with CEO:

.