Cavendish Keeps 537p Jersey Oil and Gas Buy on North Sea Oil
Cavendish kept its Buy call on Jersey Oil and Gas and held a 537p target price on the AIM-listed north sea oil developer, pointing to value in its Greater Buchan Area interests. The note implies a 407% premium to the 106p share price, a gap that leaves the stock priced well below the broker’s view of asset value.
Greater Buchan Area 537p call
Cavendish said Jersey Oil and Gas remains well placed to unlock value from its Greater Buchan Area interests. The broker’s line was blunt: "Buchan remains an attractive project for JOG and its JV partners". For holders of the shares, that is the clearest read-through from the note — a valuation call anchored in a specific project rather than a broad sector view.
537p is not a casual target. Against 106p, it signals a market that is still discounting the development heavily even after Cavendish repeated its Buy recommendation on Tuesday. The note matters because it ties the upside to a defined asset base, not to a vague North Sea theme.
Jersey Oil and Gas cash position
£11 million of cash and no debt gave Jersey Oil and Gas a clean balance sheet at the end of 2025. That cash position matters because the company is still funding a development story, not a producing one, and the note also points to a further US$20 million in cash payments on FDP approval under farm-out terms agreed with NEO NEXT+ and Serica Energy.
More than 70 million barrels sit inside the development tied to Jersey Oil and Gas’s fully carried 20% interest, which is the asset behind Cavendish’s valuation work. The broker also said both NEO NEXT+ and Serica have expanded their North Sea portfolios, a reminder that the company’s partners are not static bystanders in the project.
Buchan work keeps moving
Work continues on the Buchan Environmental Impact Assessment addendum, including updated Scope 3 emissions guidance and the socio-economic benefits of the development. At the same time, value engineering is being carried out around drilling and subsea infrastructure, with the goal of optimising the project’s capital expenditure programme.
Jersey Oil and Gas is also assessing potential UK producing asset acquisitions that could bring cash flow into the business and accelerate the value of more than US$100 million of existing UK tax allowances. If that search delivers, the broker note stops being only a paper valuation exercise and starts to look like a route to nearer-term funding and tax efficiency as the Buchan plan advances.
