UK Fiscal Update

27 November 2025

Jersey Oil and Gas plc

("Jersey Oil & Gas", "JOG" or the "Company")

UK Fiscal Update

Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company ‎focused on the UK Continental Shelf region of the North Sea, notes the UK Government's response to the consultation concerning future changes to the UK oil and gas tax regime. The subject of the consultation was the development of a permanent successor to the Energy Profits Levy ("EPL"), in the form of the Oil and Gas Price Mechanism ("OGPM").

The consultation response states that:

§ The OGPM will come into effect either on 1 April 2030 or earlier if the existing price floors that pertain to the EPL are passed (being $74/bbl and 57p/therm in the last financial year)

§ The Government has decided to adopt a revenue-based model for the calculation of windfalls under the OGPM, with a 35% tax being levied only on the revenues generated above the threshold prices

§ Two independent threshold price points will be set annually, one for oil (in dollars per barrel) and one for gas (in pence per therm)

§ The thresholds in financial year 2026-27 have been set at $90/bbl for oil and 90p/therm for gas - they will be adjusted annually in line with CPI inflation and are projected to be around $98/bbl and 98p/therm by 2030

§ The OGPM when in effect returns the tax rate to the 40% headline rate in the permanent regime, with the OGPM only applying to oil or gas revenues in the event the respective commodity price is unusually high

With clarity on the longer-term tax regime now provided, the Company will be working with the Buchan joint venture partners, NEO Next Energy and Serica Energy, to assess the impact of these changes on the Buchan project.

Enquiries:

- 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" ("GBA"). Licence P2498 contains the Buchan Horst ("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 potential 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's 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.