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LONDON (Alliance News) - North Sea-focused oil and gas company Jersey Oil & Gas PLC on Tuesday said it has signed an agreement on the farm-out of its 50% interest in the Seaward production licence.
Jersey has signed a sale and purchase agreement with Azinor Catalyst Ltd to farm-out its 50% stake. The remaining half of the licence is owned by Norwegian Energy Co UK Ltd.
The licence area is located in the North West Witch Ground Graben in the Moray Firth region of the North Sea.
Azinor Catalyst is acquiring 100% of the licence through deal with Jersey and Norwegian Energy and will make payments to the pair of USD2.0 million within 90 days of an exploration well drilled in the area exceeding a net-pay threshold, plus a further USD2.0 million within 90 days of a field development plan being approved.
"We are pleased to announce this farm-out to Catalyst. In line with our stated strategy, Jersey Oil & Gas is actively managing and de-risking its existing exploration portfolio and this transaction ensures that the company maintains exposure to the potential upside from this Licence, at no further cost to the company," said Jersey Chief Executive Andrew Benitz.
Jersey shares were up 16% to 14.0199 pence at the open.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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