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(Alliance News) - Jersey Oil & Gas PLC on Thursday said it has completed its farm-out transaction with NEO Energy in the Greater Buchan Area in the North Sea.
The UK continental shelf-focused upstream oil and gas company said each of the companies now hold a 50% interest in the licenses in the GBA, with NEO set to become the operator as part of the deal.
Jersey said it received a USD2 million cash payment on the completion of the deal and will receive USD9.4 million on the finalisation of the development solution for the licenses, USD12.5 million on approval by the North Sea Transition Authority and USD5 million on each field development plan approval in respect to the J2 and Verbier oil discoveries.
It will also take a 12.5% carry of the Buchan field development costs included in the FDP approved by NSTA.
Chief Executive Andrew Benitz said: "We are delighted to have completed the farm-out transaction and to be swiftly moving forwards with finalisation of the GBA development solution. With the route and the funding secured for preparation of the Buchan Field Development Plan, our attention now turns to unlocking further value by securing an additional GBA partner ahead of FDP approval and retaining a fully carried 20-25% interest in the development programme."
Jersey Oil & Gas shares rose 2.2% to 186.50 pence each in London on Thursday afternoon.
By Harvey Dorset, Alliance News reporter
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