30 July
2024
Jersey
Oil and Gas plc
("Jersey
Oil & Gas", "JOG" or the
"Company")
Changes to the Energy Profits
Levy
Jersey Oil & Gas (AIM: JOG), an
independent upstream oil and gas company focused on the UK
Continental Shelf region of the North Sea, advises of changes
announced to the Energy Profits Levy ("EPL") in a policy paper
published on 29 July 2024 as part of announcements made by the
Chancellor of the Exchequer, the Rt Hon Rachel Reeves
MP.
· EPL to
increase to 38% from 1 November 2024, bringing the headline rate of
tax on upstream oil and gas activities to 78%
· EPL to
be extended to 31 March 2030 with the Energy Security Investment
Mechanism remaining in place meaning the levy will cease to apply
if prices fall consistently to, or below, historically normal
levels for a sustained period
· The
EPL's main 29% investment allowance for qualifying expenditure
incurred will be removed from 1 November 2024
· Capital allowance claims that can be taken into account in
calculating EPL profits will be reduced; however the extent of the
reduction will only be announced in the October Budget following
engagement with stakeholders
The Greater Buchan Area joint
venture will carefully consider the impact of the tax changes to
the economics of the development and project sanction. The full
implications will, however, only be clear when the level of capital
allowance claims available as deductions to the EPL are provided in
the October Budget.
Enquiries:
|
Jersey Oil and Gas plc
|
Andrew Benitz
|
c/o Camarco:
020 3757 4980
|
|
Strand Hanson Limited
|
James Harris
Matthew Chandler
James Bellman
|
Tel: 020 7409 3494
|
|
Zeus Capital Limited
|
Simon Johnson
|
Tel: 020 3829 5000
|
|
Cavendish Capital Markets
Limited
|
Neil McDonald
Leif Powis
|
Tel: 020 7220 0500
|
|
Camarco
|
Billy Clegg
Rebecca Waterworth
|
Tel: 020 3757 4980
|
- Ends -
Notes to Editors:
Jersey Oil & Gas (AIM:JOG) is a
UK energy company focused on creating shareholder value through the
development of oil and gas assets and the execution of accretive
transactions.
The Company has a focused asset
portfolio centred on developing homegrown North Sea resources that
support the UK's energy requirements as it transitions towards net
zero. JOG holds a 20% interest in each of licences P2498
(Blocks 20/5a, 20/5e and 21/1a) and P2170 (Blocks 20/5b and 21/1d)
located in the UK Central North Sea and referred to as the "Greater
Buchan Area." Licence P2498 contains the Buchan oil field and J2
oil discovery and licence P2170 contains the Verbier oil
discovery.
JOG's strategy is focused on
unlocking the organic value of its GBA assets, combined with the
pursuit of asset acquisitions that bring cash flow, diversity and
quality investment opportunities into the portfolio. The
Company's Board and Executive team have a wealth of experience in
managing and growing publicly listed energy companies and a strong
track-record of value creation in the UK North Sea oil and gas
sector.
Forward-Looking Statements
This announcement may contain
certain forward-looking statements that are subject to the usual
risk factors and uncertainties associated with an oil and gas
business. Whilst the Company believes the expectations
reflected herein to be reasonable in light of the information
available to it at this time, the actual outcome may be materially
different owing to factors beyond the Company's control or
otherwise within the Company's control but where, for example, the
Company decides on a change of plan or strategy.
All figures quoted in this
announcement are in US dollars, unless stated otherwise.
The
information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019.