Jersey Oil and Gas PLC Corporate and Operational Update (1344X)
17 February 2017 - 7:00AM
UK Regulatory
TIDMJOG
RNS Number : 1344X
Jersey Oil and Gas PLC
17 February 2017
17 February 2017
Jersey Oil and Gas plc
("Jersey Oil & Gas" or the "Company")
Corporate and Operational Update
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 provide a corporate and operational
update.
Licence P.2170, Blocks 20/5b & 21/1d ("Verbier")
Statoil (U.K.) Limited ("Statoil"), the operator of Licence
P.2170 in which the Company holds an 18 per cent. interest, is
currently undertaking a tender process for a drilling rig and all
related services, which is expected to be awarded in the near
future, in respect of the planned exploration well to be drilled on
the Verbier prospect this summer, as announced previously on 14
November 2016.
In addition to Statoil's work, Jersey Oil & Gas is
conducting further technical studies to improve and update the
group's understanding of the Verbier prospect.
Following commencement of the Verbier well work programme,
including the Q4 2016 site survey, Jersey Oil & Gas is now
benefitting from the 10 per cent. carried interest arrangement in
place with its other co-venturer CIECO Exploration and Production
(UK) Limited in terms of reimbursement of the well programme
related costs. Additionally, pursuant to the terms of the farm-out,
Statoil is funding all costs up to US$25 million in respect to the
drilling of the first exploration well on the licence.
Licence P.1989, Blocks 14/11, 12 & 16 ("Partridge")
Azinor Catalyst Limited ("Azinor") has stated its intention to
drill an exploration well the Partridge prospect (previously named
Homer) on Licence P.1989, Blocks 14/11, 12 & 16 later this
year. Further to the terms of the farm-out announced by the Company
on 5 January 2016, subject to a discovery being made that satisfies
certain technical criteria, a payment of US$2m would be due to the
Company from Azinor, and, should that discovery subsequently result
in a formal Field Development Plan being approved, a further cash
payment of US$2m would also be triggered.
Production Acquisition Strategy
Several large-scale North Sea divestments have been announced by
industry participants in recent months. Such divestments have given
a great deal of encouragement that a new wave of deal activity is
beginning in the UKCS. The Company continues to be involved in
multiple sales processes, and the Board remains confident that the
management team's experience, knowledge and expertise, in
particular the foundations and processes established over the
course of the past 18 months, puts the Company in a strong position
to deliver shareholder value from its stated production acquisition
strategy.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are pleased to report the continued progress being made by
Statoil in preparation for drilling the Verbier prospect this
summer, as well as our ongoing additional technical evaluation of
the prospect. Our team also remains actively involved in multiple
sales processes targeting possible production acquisitions in line
with our stated strategy."
Enquiries:
Jersey Oil and Andrew Benitz, C/o Camarco:
Gas plc CEO Tel: 020 3757 4983
Strand Hanson Limited James Harris Tel: 020 7409 3494
Matthew Chandler
James Bellman
Arden Partners Chris Hardie Tel: 020 7614 5900
plc Benjamin Cryer
Camarco Billy Clegg Tel: 020 3757 4983
Georgia Edmonds
James Crothers
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 company news service from the London Stock Exchange
END
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February 17, 2017 02:00 ET (07:00 GMT)