Last checked at 4 Apr 2017 12:06
4 April 2017
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Rig Contract Signed for Drilling of the "Verbier" Prospect in Summer 2017
Jersey Oil & Gas (AIM:JOG), an independent upstream oil and gas company focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to announce that Statoil (U.K.) Limited ("Statoil"), operator of UK Seaward Licence P.2170, Blocks 20/5b & 21/1d (the "P.2170 Licence"), has awarded a contract to Transocean Drilling UK Limited ("Transocean") for the semisubmersible rig Transocean Spitsbergen. The Transocean Spitsbergen rig will drill the Verbier prospect on the P.2170 licence in the Central North Sea.
The Verbier well will be part of a Statoil operated three well drilling programme, with the Verbier well planned to be drilled in summer 2017.
The Verbier prospect in which the Company holds an 18 per cent. interest, is located in Blocks 20/5b & 21/1d. The recently announced Competent Person's Report ("CPR") undertaken by ERC Equipoise Ltd ("ERCE"), estimated gross mean Prospective Resources attributable to the P.2170 Licence to be 162 MMboe for the Verbier prospect.
Statoil will fund all costs up to US$25 million in respect of the Verbier well in addition to which JOG benefits from an additional carry of 10 per cent. from co-venturer CIECO Exploration and Production (UK) Limited ("CIECO") in respect of the well programme related costs.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are very pleased to announce that Statoil has contracted the rig, Transocean Spitsbergen, to drill the Verbier prospect in summer of this year. Confirmation of this contract is the culmination of a great deal of technical work by the Joint Venture partnership and we are grateful for the support received from our shareholders during this time."
Enquiries:
Jersey Oil and Gas plc
| Andrew Benitz, CEO | C/o Camarco: Tel: 020 3757 4983 |
Strand Hanson Limited | James Harris Matthew Chandler James Bellman | Tel: 020 7409 3494 |
Arden Partners plc | Chris Hardie Benjamin Cryer | Tel: 020 7614 5900 |
BMO Capital Markets | Vicary Gibbs Neil Haycock Tom Rider | Tel: 020 7236 1010 |
Camarco | Billy Clegg Georgia Edmonds James Crothers | Tel: 020 3757 4983 |
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.
Notes to Editors:
Jersey Oil and Gas is a UK E&P Company focused on the North Sea. The company owns an 18% interest in the P.2170 licence, Blocks 20/5b &21/1d, Inner Moray Firth, where it is participating in a Statoil funded and operated exploration well on the Verbier prospect in summer 2017. A recent Competent Persons Report, carried out by ERC Equipoise ltd suggests the Verbier prospect to contain 162MMboe gross mean prospective resources. The licence also contains the Cortina prospect (124mmboe gross mean prospective resources) and Meribel lead which are both Upper Jurassic targets like Verbier.
The company plans to potentially build a major production portfolio via acquisitions coinciding with the cyclical recovery in the oil price and the opportune buying market available in the North Sea. The company is involved in multiple sales processes and intends to draw on its management team's experience, knowledge and expertise to deliver shareholder value from its stated production acquisition strategy.