9th Dec 2015 10:04
LONDON (Alliance News) - Jersey Oil & Gas PLC Wednesday said it believes it has enough cash to fund its activities into the second half of 2016 and said it has placed a number of bids to acquire producing assets in the UK North Sea.
Jersey Oil was formed earlier in 2015 after Trap Oil Group PLC acquired Jersey Oil & Gas E&P Ltd as part of Trap's major restructuring which included a name change.
Since that restructuring announced back in July, Jersey Oil has been rather quiet on the news front as it looks to acquire assets. The company still owns stakes in six North Sea assets from before the merger was completed.
Those stakes vary from as low as 10% to as high as 73% and are comprised of the Athena, Magnolia, Romeo, Niobe, Homer and Cortina assets, with Jersey Oil operating Cortina and Romeo and holding smaller stakes in the other assets.
On Wednesday, Jersey Oil said it has put forward several bids for producing assets in the North Sea as it tries to capitalise on the current weak market conditions caused by low oil prices.
Jersey Oil also said it has focused on minimising costs and has been prudent with its expenditure to try to adjust the company to the lower oil price environment and to allow the company to manage the legacy portfolio.
As a result, Jersey Oil believes it has enough cash to fund its working capital requirements "into the second half of 2016".
Jersey Oil shares were trading down 5.5% to 13.0 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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