Salary cuts and cost savings are part of a Jersey Oil & Gas strategy to maintain a lean operation that it believes will help it make money at less than $30 per barrel.
The company said further cost savings and salary reductions should enable it to continue operating with its existing cash resources into 2017 as it pursues its acquisition strategy in a difficult North Sea market
Jersey has no existing debt, a clean balance sheet, access to debt capital and significant tax losses available to acquire interests in lower cost tie back fields capable of generating cash in the low oil price environment.
The company aims to move from asset-related to “more probable corporate opportunities”.
Meanwhile, Jersey and its co-venturer, CIECO Exploration and Production (UK) are currently seeking farm-in partners for their Cortina blocks in the Central North Sea, awarded in the 28th Licencing Round, having completed planned technical studies.
Two large medium risk oil prospects have been identified with estimated volumes of 300 and 212 million stock-tank barrels respectively.
The acreage lies in a proven, light oil fairway close to the Buchan and Tweedsmuir oilfields with access to surrounding infrastructure. A farm-out process is underway with initial interest expressed by several parties.
Jersey has relinquished its Liberator field licence citing “onerous” licence fees, forgoing its 10% carried interest in this licence.
A decision by the joint venture partners has also been made to relinquish its Romeo field licence from February 11.
Chief executive Andrew Benitz, said: “We believe that the recent oil price decline will create significant opportunities during 2016 for those entering the market and that Jersey Oil & Gas is very well positioned to take advantage of this opportune environment for acquirers.
“We are also excited to announce the launch of the Cortina farm-out process, which benefits from two identified oil prospects with significant resource potential, located in a prolific, proven light oil fairway.”
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