Additional Award of Block 21/2a containing the Glenn Oil Discovery
· JOG awarded, subject to documentation, 100% working interest and operatorship of an additional block (Block 21/2a) in the Oil & Gas Authority's ("OGA") 31st Supplementary Offshore Licensing Round
· Additional Greater Buchan Area ("GBA") acreage in Block 21/2a includes the Glenn oil discovery and adds a further 14 million barrels of oil equivalent ("mmboe") discovered mean recoverable resources
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are delighted to announce this further licence award within the Greater Buchan Area. This additional acreage completes a 100 per cent. success rate of awards across all of the acreage we applied for in the 31st Supplementary Offshore Licensing Round. The Glenn oil discovery contained therein adds additional discovered resources net to JOG as well as operatorship of another discovered resource in the area of our Buchan-centred development hub plans for the GBA."
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 been awarded 100% working interest and operatorship of Block 21/2a in the OGA's 31st Supplementary Offshore Licensing Round. The additional acreage awarded to JOG, subject to documentation, includes the Glenn oil discovery.
The licence in respect of Block 21/2a comprises a two-year Initial Term with certain firm work obligations, principally comprising geotechnical studies, with a drill or drop well obligation at the end of the term.
The acreage is contiguous with the previously announced 31st Supplementary Offshore Licensing Roundawards both in the Greater Buchan Area ("GBA") containing the Buchan and J2 discoveries and the Capri, Chamonix, Courchevel and Zermatt prospects and the Licence P2170 (Blocks 20/5b and 21/1d) acreage that contains the Verbier oil discovery, in which JOG holds an 18% working interest alongside operator, Equinor UK Limited ("Equinor") (70%), and CIECO V&C (UK) Limited (12%).
Together with its interest in the Verbier discovery and previous GBA acreage awards, the addition of Block 21/2a to its portfolio provides the Company a significant opportunity to operate a major new area development of in excess of 120 million barrels of oil equivalent ("mmboe") of discovered mean recoverable resources net to JOG.
Block 21/2a resource estimate
Unrisked Gross Recoverable Mean Resources (mmboe)
Source: JOG Management estimates.
JOG has already commenced work on a Field Development Plan ("FDP") seeking to deliver a JOG-operated area hub development in line with the OGA's Maximising Economic Recovery of UK petroleum ("MER UK") strategy. JOG is fully funded to an FDP. This area hub will be planned to incorporate the redevelopment of the Buchan oil field, together with the development of the J2 oil discovery and potentially the Glenn and Verbier oil discoveries as well as other discovered and yet-to-be-found resources in the GBA. First oil, subject to funding, is targeted for 2024. JOG will evaluate and determine the optimal sustainable development plan, designed to deliver phased and extended plateau production.
Jersey Oil and Gas plc
Andrew Benitz, CEO
Tel: 020 3757 4983
Strand Hanson Limited
Tel: 020 7409 3494
Arden Partners plc
Tel: 020 7614 5900
BMO Capital Markets Limited
Tel: 020 7236 1010
Tel: 020 3757 4983
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 owns an 18% interest in the P2170 licence, Blocks 20/5b & 21/1d, Outer Moray Firth, in which the operator, Equinor UK Limited, owns a 70% interest and CIECO V&C (UK) Limited owns a 12% interest. This licence contains the 2017 Verbier discovery.
Jersey Oil and Gas 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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Andrew Benitz of Jersey Oil & Gas PLC (LON:JOG) says pre-funding the seismic being shot over the Verbier acreage in North Sea allows the data to be optimised and is cheaper.
Capex for the appraisal programme will be at the upper end of £9-11mln including seismic.