Sorry, we got it wrong on Jersey Oil & Gas
Jersey Oil & Gas (JOG:AIM) 74p
Loss to date: 20% (stopped out)
Original entry point: Buy at 213.8p, 21 March 2019
Shortly after adding the resources group to our Great Ideas portfolio, shares in North Sea oil play Jersey Oil & Gas (JOG:AIM) fell heavily as it announced disappointing results from drilling in the North Sea.
An appraisal well on the Verbier discovery only confirmed the lower end of earlier estimates.
We felt the risk was more limited than pure oil and gas exploration given a degree of certainty that oil was there; it was just a question of how much exactly. However, the outcome was probably about as negative as it could have been.
Analyst David Round from Canadian bank BMO still thinks it can be a commercial project, with a prospective development valued at 140p per share. However, the market is likely to take some convincing.
The next key piece of news for the company is likely to be the result of licensing awards for acreage around Verbier, due in the third or fourth quarter.
SHARES SAYS: A very poor outcome, and one we will look to learn from.