Completion of the acquisition of Equinor UK’s interest in Licence P2170
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 it has completed the transaction to acquire operatorship of and a 70% working interest in Licence P2170 (Blocks 20/5b and 21/1d) (“Licence P2170”) from Equinor UK Ltd. (“Equinor UK”) (the “Acquisition”) as announced on 27 January 2020. The consideration for the Acquisition consists of two milestone payments and a royalty based on volumes produced from the Verbier Upper Jurassic (J62-J64) reservoir oil discovery (the “Verbier discovery”).
The Acquisition, which is not subject to upfront cash payments, provides JOG with an opportunity to create significant value through potentially developing the Verbier discovery as part of the Greater Buchan Area (“GBA”) hub. Licence P2170 also benefits from multiple material exploration prospects that have high value potential through tie-backs to the proposed new GBA hub.
Andrew Benitz, CEO of Jersey Oil & Gas, commented :
“I am pleased that JOG has completed this important step to acquire an additional interest and operatorship in the Verbier discovery together with material exploration upside to facilitate our plan to develop Verbier as part of our GBA development. We continue to make solid progress on concept select for the GBA and work closely with contractors, other area stakeholders and the OGA on this important project.”
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