Major boon predicted for Jersey Oil & Gas as bullish broker repeats Buy rating

Cavendish sees almost fivefold upside in Jersey Oil and Gas PLC (AIM:JOG, OTC:JYOGF) after regulators extended the Verbier licence, giving the partners more time to advance an integrated Greater Buchan Area development.

The broker has repeated a Buy recommendation and 537p price target, representing 388% upside from the AIM-listed company’s 110p share price.

The North Sea Transition Authority approved a six-month extension to the second term of the P2170 Verbier licence, bringing its expiry into line with the neighbouring P2498 Buchan Horst licence.

Cavendish said the alignment reflected plans for an integrated area development that could incorporate nearby third-party volumes, potentially including Ping Petroleum’s Avalon field.

“Activity at Buchan continues as the JV partners assess the optimal development solution,” the broker said in a note.

Engineering and commercial work will continue into 2027, with the partners establishing a work programme and budget for next year.

Jersey Oil & Gas also retains a solid funding position.

It held £11 million of cash at the end of 2025 after reducing annual cash costs by 50% to £1.5 million.

The company is fully carried through Buchan development and is due another US$20 million under its farm-out agreements once the field development plan is approved.

Cavendish added that Buchan remains central to the longer-term growth plans of partners NEO NEXT+ and Serica Energy, with the project representing around half of Serica’s 2C resources.