Jersey Oil & Gas, Orcadian Energy Shares Rise as UK Approves Jackdaw Field

Shares in Jersey Oil & Gas (LON: JOG) and Orcadian Energy (LON: ORCA) jumped in early trading today as the UK government approved gas production at the Jackdaw field. Both are North Sea oil and gas companies listed on AIM, London’s market for smaller growth companies.

Jersey Oil & Gas stood at 130.69p at 9.33am, up 10.3% on yesterday’s close of 118.5p, after touching 137.7p. Orcadian was at 15.8p at 9.24am, up 12.9% on 14p. Both trade thinly, and Jersey’s shares had already jumped on Monday, from 104p to 118p, before the news.

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Energy secretary Miatta Fahnbulleh is reported to have agreed that the regulator can grant consent for gas to be produced at Jackdaw, with supply to the UK expected from this winter. Orcadian published a short announcement this morning noting the approval.

Jackdaw is a large gas field about 150 miles east of Aberdeen. Gas is reported to be able to reach the UK by the end of the month. The developer, Adura, estimates the field will supply up to 6% of UK-produced gas at its peak.

Orcadian chief executive Steve Brown welcomed the decision and looked to the next one, Rosebank, a large undeveloped North Sea oilfield still awaiting a verdict.

Well about time. We have escaped the madness of a fully developed gas field trapped in a web of conflicting regulation as winter approaches. Now for Rosebank, another well-advanced development that can underpin the UK’s energy security.

Steve Brown, CEO, Orcadian Energy

Brown also said the approval shows Orcadian’s Earlham plan, a gas project that would capture and store most of its emissions, will not founder on an objection to gas or oil.

Orcadian’s own announcement, however, says the news is not considered material or to have a significant impact on management’s expectations of the company’s performance. It does not say Orcadian holds an interest in Jackdaw.