Member Info for indi123

Short and sweet. Hopefully things are falling into place, geopolitically.

Whoops. Just seen they've already released the Q1 update in March.

...should be imminent.

I hope the price increase today does not indicate a RNS has been scheduled for tomorrow. Friday RNS's make me nervous.

Thanks Adon30. I must be doing something wrong.

Thanks obmuj

Adon30

Which location coordinates are you using for 36-2?

I'm using 38.84907 / -109.98661 but can't see it using sentinel. Whereas I can see 16-2 using 38.899426 / -110.043221. Both sets of coordinates are taken from the UDOGM website.

Thursday's price action was probably down to investors cashing in on recent gains. Should see a rerate on here in the next few weeks.

Live price 270 - 275 now.

https://www.energyvoice.com/oilandgas/north-sea/495043/neo-energy-takes-over-buchan-field-from-jersey-oil-and-gas/

Deal: NEO Energy takes over Buchan field from Jersey Oil and Gas
By Allister Thomas
06/04/2023, 7:48 am

NEO Energy has struck a deal to acquire operatorship and a 50% stake in the Greater Buchan Area from Jersey Oil and Gas (AIM: JOG).

The private-equity backed player, which is the fifth-largest producer in the UK North Sea, has agreed the farm-in deal worth more than $40m for the assets in the Moray Firth.

Jersey Oil and Gas said NEO Energy coming in “unlocks the route” to monetising Buchan’s 100 million barrels of oil equivalent in resources and finalising the development solution.

First oil is targeted for 2026 and Jersey said it has “confirmed a short list of attractive options” for GBA which utilise existing North Sea infrastructure.

It added that the “unstable fiscal conditions” due to the UK windfall tax “have been challenging” and the joint venture “will be mindful of the future fiscal attractiveness of the UK” as it progresses.

The company will receive carry for JOG’s 50% share of the estimated $25m development costs, alongside more than $28m in other payments.

Jersey said it expects to divest up to 30% more of its stakes in the project.

CEO Andrew Benitz said: “We are delighted to announce this transaction with NEO Energy, a well-funded industry heavyweight and the fifth largest producer in the UKCS. The farm-out marks a major value creation moment for JOG, a significant de-risking of the GBA development programme, from both an operational and funding perspective, and provides the springboard from which to grow the long-term value of the business.

“We are looking forward to working collaboratively with NEO Energy to select the optimal development solution for the GBA and taking the project through to sanction and on into future production.”

NEO Energy, backed by private equity firm HitecVision, has built itself up through M&A deals over they years to become the sector’s number five producer.

In January, the firm named Nexen veteran Paul Harris as its new CEO, replacing dealmaker Russ Alton in the top job.

Located on licence P2498 across Blocks 20/5A, 20/5E and 21/1A, the GBA comprises the Buchan oilfield, as well as the J2 and Verbier oil discoveries, and boasts estimated gross 2C economic resources of 162 million barrels of oil equivalent (boe) – making it one of the biggest pre-FID developments in the UK North Sea.

Buchan came on stream in 1981, but production halted in 2017 because the Buchan Alpha platform was unsafe and had to be removed by then-operator Repsol Sinopec.

Jersey has been working on plans for the area for several years, but extended its development timeline in late 2021 to allow for further studies on electrification.

Thanks for the link Si_Derman. Had a listen. Mr McGeever sounds very optimistic and thinks highly of CH.

IMHO this is a great business model; new exploration funded from profits and government grants. Soon we'll find out if the under test 36-2 well, will be adding to profits and in turn fund more wells. As the saying goes 'Mighty oaks from little acorns grow'.

If 36-2 is deemed to be an oil well, there should be little or no delay to production and profitability.

Adon30 - do you have a link for the satellite images please?

Thanks for checking.

Shame there's no flare, 'cos I was hoping to analyse the colour and size of the flare and calculate the boepd and API. :-)

Has anyone looked ? Do we have a flare yet?

Yeah, just seen your post Adon30. - bang on the money. Only thing is, it took around 9 months for 36-3 permit to be approved. Hope 16-3 doesn't take so long.

Things are progressing nicely. New permit application submitted for well API 4301950118 - White Sands Unit 16-3LSE-CC, last Friday 17 March 2023.

I found the short five minute video at the link below to be quite informative, in a very simplistic sense. It may be of use to others on this board:

https://www.youtube.com/watch?v=wWBdWMF1XSg

Agreed. When other explorers are raising cash by means of placings, Zephyr are managing to pay for exploration from their profits. Great business model and long may it last.