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 an oil discovery in the Verbier sidetrack well, 20/05b-13Z. The well has been drilled safely and within budget to the planned total depth of 3811m and a suite of log data has been acquired via Logging While Drilling (“LWD”), including pressure data.
Preliminary analysis indicates:
· The well has proven a hydrocarbon accumulation in good quality sands, up dip of the water bearing sands encountered in the initial well
· Evaluation of the well results, together with the existing 3D seismic data is ongoing
· Initial Operator estimates of gross recoverable resources associated with the Verbier discovery are between 25 and 130 million barrels of oil equivalent, with a minimum proven recoverable volume in the immediate vicinity of the wellbore of 25 million barrels of oil equivalent
In addition to confirming the presence of oil in the Verbier prospect, this discovery provides valuable information to help better understand the prospectivity of the licence area, which includes the Cortina prospect and the Meribel lead. JOG holds an 18% working interest in the licence.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
“We are delighted by the positive outcome of the Verbier sidetrack. The well has achieved its objective by encountering good quality, hydrocarbon-bearing sands, up dip from the initial well with the results exceeding pre drill expectations for the sidetrack.“
Jenny Morris, Vice President for Exploration in the UK of Statoil, commented:
“The results show that we made the right decision to sidetrack the well and this discovery proves that there could be significant remaining potential in this mature basin… we are convinced of the remaining, high-value potential on the UK continental shelf and the Verbier result certainly gives us the confidence and determination to continue our exploration efforts.”
Qualified Person’s Statement:
The information contained in this announcement has been reviewed and approved by Ronald Lansdell, Chief Operating Officer of Jersey Oil and Gas, qualified Geologist and Fellow of the Geological Society, who has over 40 years’ relevant experience within the sector.
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.
Notes to Editors:
Jersey Oil & Gas is a UK E&P Company focused on building a production focused company in the North Sea. The Company owns an 18 per cent. interest in the P.2170 licence, Blocks 20/5b & 21/1d, Inner Moray Firth. Statoil (U.K.) Limited owns a 70% interest and CIECO V&C (UK) Limited owns a 12% interest.
The Company plans to build a production portfolio via 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 production acquisition strategy.
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