Last checked at 11 Sep 2017 07:00
11 September 2017
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Verbier and Partridge Well Results
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf ("UKCS") region of the North Sea, announces that the Statoil operated 20/05b-13 exploration well drilled on the P.2170 licence Blocks, 20/05b & 21/1d to test the Verbier prospect (in which the Company owns an 18 per cent. interest) has been safely drilled, reaching the planned target Total Depth of 4,267m on 10 September 2017. The well encountered water bearing Upper Jurassic sands, deeper than anticipated. A decision on whether to drill a sidetrack will be taken after evaluation of wireline logs, although at this stage JOG considers this to be unlikely. In the event a sidetrack is not drilled, the well will be plugged and abandoned.
This well was drilled with ultimately no cost exposure to JOG. The Board estimates that the Company's cash position at the end of 30 September 2017, taking into account both existing cash reserves and funds due from the Company's carry arrangements in respect of the Verbier well, will be approximately £2.5m.
In addition, the Company notes the announcement by Azinor Catalyst Limited ("Azinor") on 8 September 2017 relating to its 14/11a-2 well on the Partridge Prospect in which JOG had a contingent financial interest, as announced by the Company on 5 January 2016. While that well encountered excellent quality reservoir rocks, hydrocarbons were not present and it has now been plugged and abandoned. Accordingly no contingent payments will be received by the Company from Azinor.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are naturally disappointed by these results, but remain in a strong position to continue to pursue our core strategy of growth through potential production asset acquisitions.
"In light of the Verbier result, the Company will now update its evaluation of the P.2170 licence acreage and consider the possible implications for the Cortina prospect, which remains an independent and prospective Upper Jurassic target."
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 | 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 & Gas is a UK E&P Company focused on building a production focused company in the North Sea. The Company owns an 18 per cent. interest in the P.2170 licence, Blocks 20/5b & 21/1d, Inner Moray Firth, containing the Cortina prospect and Meribel lead. A Competent Persons Report published in March 2017, commissioned from ERC Equipoise Ltd estimated the Cortina prospect to contain 124MMboe gross mean prospective resources.
The Company plans to build a major production portfolio via acquisitions coinciding with the cyclical recovery in the oil price and the current opportune buying market in the North Sea. The Company is involved in multiple sales processes and intends to draw on its management team's considerable experience, knowledge and expertise to deliver shareholder value from its stated production acquisition strategy.