Last checked at (Sharecast News) - Jersey Oil & Gas announced on Monday that it has established and will lead the Greater Buchan Area joint integrated studies agreement between neighbouring field operators, to undertake and complete technical and commercial evaluation studies for a collaborative development of the wider Greater Buchan Area.
The AIM-traded firm explained that the area contains discovered oil and gas resources of more than 200 million barrels of oil equivalent.
It said a key objective of the studies under the agreement was to establish whether a collaborative development would lead to a reduction in development costs, and an increase in value for all participants in a new production hub in the area, which could potentially include electrification in line with the Oil & Gas Authority's 'Maximising Economic Recovery' strategy for the UK Continental Shelf, and reducing carbon dioxide emissions.
Jersey said the fields, discoveries and participants involved included Buchan, J2 and Glenn, operated by Jersey Oil & Gas at 100%, as well as Verbier, operated by Equinor UK at 70% pending completion of its acquisition announced on 27 January, alongside its partners Jersey Petroleum Limited at 18% and CIECO Exploration and Production at 12%.
It also included Avalon, operated by Ping Petroleum UK at 50% alongside its partner Summit Exploration and Production at 50%, and Leverett, operated by Zennor Resources at 100%.
"We are delighted to be progressing this important study to evaluate the technical and commercial benefits of working together with neighbouring operators to potentially develop over 200 million boe of discovered oil and gas within the wider Greater Buchan Area," said chief executive officer Andrew Benitz.
Scott Robertson, director of operations at the Oil & Gas Authority, said he was "delighted" with the collaboration agreement in the Greater Buchan Area, particularly given collaboration was a "key component" of the authority's vision for the Greater Buchan Area, through the 31st Supplementary Licensing Round award in 2019.
"Oil and gas will remain an important part of the UK's energy mix for the foreseeable future as we transition to net zero.
"The OGA is encouraged by the collaborative and energy efficient example Jersey Oil & Gas is setting."
At 0952 GMT, shares in Jersey Oil & Gas were flat at 57p.
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