Jersey Oil & Gas Awarded Three UK Offshore Blocks; Shares Up 51%

(Alliance News) - Jersey Oil & Gas PLC on Monday said it has been awarded three blocks in a UK offshore licencing round, including on the Buchan oil field and J2 discovery.

Shares in the UK offshore-focused upstream oil and gas firm surged 48% to 109.00 pence in morning trade.

The company was awarded acreage containing more than 100 million barrels of oil, including Buchan, and will have a 100% working interest and operate all three blocks. The blocks were awarded under the Oil & Gas Authority's 31st supplementary offshore licencing round.

The blocks are contiguous with Jersey Oil's existing interest in licence P2170, which includes the Verbier discovery.

Including P2170, Jersey Oil has an estimated more than 100 million barrels of oil equivalent discovered mean recoverable resources, as well as an identified mean prospective resource of more than 300 million barrels of oil equivalent.

Work is ongoing on a field development plan, subject to funding, with first oil targeted for 2024, and the company is fully funded to submit the plan.

Equinor and Jersey Oil have agreed a three-month option over a 50% equity interest in respect of the Buchan blocks.

Jersey Oil Chief Executive Andrew Benitz said: "We are delighted to announce this transformational event. Prior to these awards, [Jersey Oil & Gas's] net share of discovered resources in Verbier were estimated at 4.5 million barrels of oil equivalent.

"Today's awards add an estimated 105 million barrels of oil equivalent of discovered resources net to JOG, in addition to a material uplift in new prospective resources. This represents a highly significant value-enhancing milestone for our shareholders comprising 100% equity interests and operatorship of key development-ready assets with the potential to create a major new area hub within the Greater Buchan Area."

Benitz added: "We are also pleased to enter into an option agreement with Equinor, which serves to demonstrate JOG's efforts to successfully collaborate and continue to strengthen our working relationship with Equinor as the operator of licence P2170."