Jersey Oil & Gas announces corporate and operational update
Friday, Feb 17, 2017
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to provide a corporate and operational update.Licence P.2170, Blocks 20/5b & 21/1d ("Verbier")
Statoil (U.K.) Limited ("Statoil"), the operator of Licence P.2170 in which the Company holds an 18 per cent. interest, is currently undertaking a tender process for a drilling rig and all related services, which is expected to be awarded in the near future, in respect of the planned exploration well to be drilled on the Verbier prospect this summer, as announced previously on 14 November 2016.
In addition to Statoil's work, Jersey Oil & Gas is conducting further technical studies to improve and update the group's understanding of the Verbier prospect.
Following commencement of the Verbier well work programme, including the Q4 2016 site survey, Jersey Oil & Gas is now benefitting from the 10 per cent. carried interest arrangement in place with its other co-venturer CIECO Exploration and Production (UK) Limited in terms of reimbursement of the well programme related costs. Additionally, pursuant to the terms of the farm-out, Statoil is funding all costs up to US$25 million in respect to the drilling of the first exploration well on the licence.Licence P.1989, Blocks 14/11, 12 & 16 ("Partridge")
Azinor Catalyst Limited ("Azinor") has stated its intention to drill an exploration well the Partridge prospect (previously named Homer) on Licence P.1989, Blocks 14/11, 12 & 16 later this year. Further to the terms of the farm-out announced by the Company on 5 January 2016, subject to a discovery being made that satisfies certain technical criteria, a payment of US$2m would be due to the Company from Azinor, and, should that discovery subsequently result in a formal Field Development Plan being approved, a further cash payment of US$2m would also be triggered.Production Acquisition Strategy
Several large-scale North Sea divestments have been announced by industry participants in recent months. Such divestments have given a great deal of encouragement that a new wave of deal activity is beginning in the UKCS. The Company continues to be involved in multiple sales processes, and the Board remains confident that the management team's experience, knowledge and expertise, in particular the foundations and processes established over the course of the past 18 months, puts the Company in a strong position to deliver shareholder value from its stated production acquisition strategy.Andrew Benitz, CEO of Jersey Oil & Gas, commented:"We are pleased to report the continued progress being made by Statoil in preparation for drilling the Verbier prospect this summer, as well as our ongoing additional technical evaluation of the prospect. Our team also remains actively involved in multiple sales processes targeting possible production acquisitions in line with our stated strategy."
For more information, please visit: http://www.jerseyoilandgas.com