Andrew Benitz, CEO of Jersey Oil & Gas, commented: The first half of 2019 has been transformational for JOG, we have begun work on a full re-evaluation of the P2170 licence area and after significant effort and investment JOG was awarded 100% working interest and operatorship of four blocks in the Greater Buchan Area.
This has significantly enhanced the Company’s resource base of discovered oil volumes.
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 its interim results for the six months ended 30 June 2019 (the “Period”).
· Strong cash position of approximately £15.5m at period end
· Drilled the 20/05b-14 Verbier appraisal well which, although failing to encounter Upper Jurassic sands, provided the P2170 JV partners with valuable well data
· Received the final instalment of the processed data from the 2018 PGS 3D seismic survey, which will be incorporated with data from the 20/05b-14 Verbier appraisal well to provide a Verbier licence full re-evaluation
· Received £750,000 in settlement from Total E&P UK Limited (“TEPUK”) in relation to the termination of its 2013 farm-in to licence P2032
Post Period End:
· Transformational licence awards in the Oil and Gas Authority’s (“OGA”) 31st Supplementary Offshore Licensing Round in the UK North Sea
· Greater Buchan Area awards include 100% equity and operatorship of the Buchan Field together with the J2 and Glenn discoveries
· Awards add an estimated 119 million barrels of discovered mean recoverable resources net to JOG
· Three month 50% option granted to Equinor for Blocks 20/5d and 21/1a (the “Buchan Blocks”)
· Field Development Planning (“FDP”) work underway on the Greater Buchan Area hub development project
· Adopting key Environment, Social and Governance principles to ensure that we develop our resources in a sustainable, low carbon and responsible manner
· Hiring key project team members to enhance our technical and project management capabilities
· Appointing key contractors to undertake Appraise and Select phases of the FDP work
· Commissioned a new independent Competent Person’s Report (“CPR”) for the Buchan Blocks, which contain the Buchan Field and J2 discovery
· Progressing full subsurface re-interpretation / validation of licence P2170 using the new final processed data from the 2018 PGS 3D seismic survey
· Undertaking independent work in respect of licence P2170 to support potential future drilling activity
· Potential production acquisition opportunities continue to be pursued
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
“The first half of 2019 has been transformational for JOG, we have begun work on a full re-evaluation of the P2170 licence area and after significant effort and investment JOG was awarded 100% working interest and operatorship of four blocks in the Greater Buchan Area. This has significantly enhanced the Company’s resource base of discovered oil volumes.
The Greater Buchan area is a very material and scalable project, which has the clear potential to deliver significant shareholder value beyond what we have already achieved. We are dealing with well-known, good quality, light oil fields and discoveries in a relatively benign and shallow part of the Central North Sea, which are located within UK waters, near good surrounding infrastructure for export and represent a potentially valuable energy resource for both JOG and the UK.
The board and I look forward to develop this vital resource sustainably and would like to thank shareholders for their ongoing support and look forward to updating them on further progress.”
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