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 announce that the co-venturers in respect of UKCS Licence P.2170 (Blocks 20/5b & 21/1d) (“P.2170”), which contains the Verbier oil discovery and the Cortina prospect, have committed to pre-fund a 3D seismic survey over the P.2170 licence area and certain offset acreage (the “Area of Interest” or “AOI”), which is to be conducted as part of a wider GeoStreamer MultiClient 3D seismic survey by Petroleum Geo-Services ASA (“PGS”) during Q2 2018 in the Moray Firth area. Delivery of the final imaged data by PGS from the survey is currently expected in late Q1 2019.
This pre-funding commitment has enabled Statoil (U.K.) Limited (“Statoil”), as operator of P.2170 and on behalf of the co-venturers, to have input into PGS’ survey design and the acquisition and processing parameters in order to ensure the delivery of a high quality dataset, specifically optimised to advance the interpretation of the Verbier discovery and assessment of other exploration opportunities within the P.2170 licence area.
The anticipated timing for delivery of the final imaged data from PGS will facilitate integration with the results from the Verbier appraisal well, scheduled for drilling this summer, which, in a success case, will be an important step for strategic planning as the project progresses into a potential future development phase.
The Company’s share of the survey costs in respect of the AOI will be funded from its existing cash reserves, with total Capex for 2018 now expected to be towards the upper end of the previously announced range of £9 million to £11 million.
Andrew Benitz, CEO of Jersey Oil & Gas, commented: “We are delighted to be able to participate in the pre-funding of PGS’ MultiClient 3D Survey with our co-venturers, which allows us to obtain state-of-the-art, broad-band seismic data at very favourable rates. We believe this represents an exciting step in our ongoing evaluation of the P.2170 licence area, with the timely delivery of the processed data facilitating the potential future development of the Verbier discovery as well as enhancing our understanding and evaluation of other drillable prospects in the greater licensed area, thereby building on our existing knowledge base gained from last year’s successful Verbier discovery well.
Jersey Oil & Gas is a UK E&P Company focused on building a production-focussed company in the North Sea. The Company owns an 18% interest in the P.2170 licence, Blocks 20/5b & 21/1d, Outer Moray Firth, in which the operator, Statoil (U.K.) Limited, owns a 70% interest and CIECO V&C (UK) Limited owns a 12% interest. In October 2017, the Company announced the Verbier oil discovery, with initial operator estimates of gross recoverable resources of between 25 to130 million barrels of oil equivalent. A well, planned for drilling in summer 2018, has been announced, to appraise the Verbier discovery.
The Company plans to build a production portfolio via both organic development and acquisitions coinciding with the cyclical recovery in the oil price and the current opportune buying market in the North Sea. The Company is involved in multiple sales processes and intends to draw on its management team’s considerable experience, knowledge and expertise to deliver shareholder value from its stated strategy.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.
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