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 the results of a comprehensive subsurface evaluation that has been completed across all of the Company’s licensed acreage.
This evaluation has validated our existing prospectivity and has identified a significant new prospect named Wengen, located on Licence P2170, directly west of the producing Tweedsmuir field.
Four of the prospects have been matured to drill-ready status: Verbier Deep, Cortina NE (J64), Wengen (P2170) and Zermatt (P2497) with aggregate P50 prospective resources of 222 MMboe (including upside potential to Cortina NE (J64) that, in the success case, could be tested by an initial exploration well and a side-track well). Individual probabilities of geological success (“Pg”) range from 16 to 30%.
Subject to funding, a drilling campaign is planned from 2022. In the success case, it is envisaged that development would be made via short distance, subsea tiebacks to the planned GBA facility.
The geological and geophysical evaluation undertaken by the Company has been peer-reviewed by Rockflow Resources Ltd. (P2170) and Xodus Group (P2497), and the subsequent reservoir engineering and commercial evaluation has been undertaken jointly by the Company and Xodus Group.
The prospects are individually economically robust with, in each case, the estimated P90 economically recoverable volumes exceeding the required minimum economic field size, to be developed as subsea tiebacks to JOG’s planned GBA hub development.
An exploration update presentation is available to view on the Company’s website at: www.jerseyoilandgas.com/investors/presentations/
JOG also notes that the Oil & Gas Authority has acknowledged an application for the discretionary surrender of part of the licensed area of Licence P2170. As such, with effect from 30 November 2020, the licensed area as defined at Schedule 1 to the Licence shall be replaced by the new licence area, as illustrated on page 2 of the aforementioned presentation published on the Company’s website today. The retained licensed area includes the four drill-ready prospects identified as shown and affords a significant saving in respect of annual licence rental payments.
Andrew Benitz, CEO of Jersey Oil & Gas, commented :
“Our latest subsurface work has further detailed the significant value within the wider Greater Buchan Area. These highly attractive, drill-ready exploration prospects are in the immediate vicinity of our planned GBA production facility and, as a result, a discovery at any one of these prospects would have the potential to extend the GBA production plateau and further enhance shareholder value. We look forward to progressing a drilling campaign post a successful conclusion to our upcoming GBA sales process.”
Qualified Person’s Statement
The information contained in this announcement has been reviewed and approved by Ronald Lansdell, Chief Operating Officer of Jersey Oil & Gas, a qualified Geologist and Fellow of the Geological Society, who has over 40 years’ relevant experience within the sector.
Notes to Editors :
Jersey Oil & Gas is a UK E&P company focused on building an upstream oil and gas business in the North Sea. The Company holds a significant acreage position within the Central North Sea referred to as the Greater Buchan Area (“GBA”), which includes operatorship and 100% working interests in blocks that contain the Buchan oil field and J2 and Glenn oil discoveries and an 100% working interest in the P2170 Licence Blocks 20/5b & 21/1d (subject to OGA approval of the acquisition of CIECO V&C UK Limited as announced on 26 November 2020), that contain the Verbier oil discovery and other exploration prospects.
JOG’s acreage is estimated by management to contain more than 140 million barrels of oil equivalent (“boe”) of discovered mean recoverable resources net to JOG, in addition to significant exploration upside potential. JOG is currently progressing the Concept Select phase of an FDP for the Greater Buchan Area.
JOG is focused on delivering shareholder value and growth through creative deal-making, operational success and licensing rounds. Its management is convinced that opportunity exists within the UK North Sea to deliver on this strategy and the Company has a solid track-record of tangible success.
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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