Last checked at 3 Apr 2019 07:00
3 April 2019
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Verbier Appraisal 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 20/05b-14 appraisal well has been safely drilled, ahead of schedule and within budget to a total depth of 3,784m. Based on preliminary observations during drilling, the well did not encounter Upper Jurassic sands as anticipated. As a result, our contingent resource volumetric estimations for the Verbier discovery are likely to be revised towards the lower end of the initial resource estimate of 25 million barrels of oil equivalent ("mmboe") announced following the discovery in October 2017.
The appraisal well results will be fully integrated with the final processed data from the 3D seismic survey acquired in 2018 in order to evaluate the upside potential for further Verbier appraisal activity. A large part of the mapped area of the Verbier discovery, located to the north west of the 20/05b-14 well location remains untested. Additional resource potential, which was not tested with this well or the discovery well, has also been identified in a deeper horizon beneath the Verbier discovery. This, along with the Cortina prospect, will be matured with the new seismic data and be considered for future drilling.
It is JOG's view that the Verbier oil discovery remains commercially viable at 25 mmboe and we look forward to evaluating potential future development options, including the potential to develop the Verbier discovery as part of a wider area development plan.
The co-venturers in the P2170 Licence and their respective interests are: Equinor UK Limited 70%, JOG 18% and CIECO V&C (UK) Limited 12%.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are both surprised and disappointed by the results of our appraisal well. JOG remains confident that Verbier is a commercially viable development project that could be further enhanced by the potential for a new area hub development, together with undeveloped discoveries that sit in close proximity to Verbier.
Verbier has been a play-opener for JOG and we remain excited about the growth potential surrounding this valuable asset. JOG remains well-funded to pursue our growth plans and will continue to assess various acquisition opportunities as we move forward."
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 | Paul Shackleton Benjamin Cryer | Tel: 020 7614 5900 |
BMO Capital Markets Limited | Jeremy Low Tom Rider | Tel: 020 7236 1010 |
Camarco | Billy Clegg James Crothers | Tel: 020 3757 4983 |
Qualified Person's Statement:
The information contained in this announcement has been reviewed and approved by Ronald Lansdell, Chief Operating Officer of Jersey Oil & Gas, a qualified Geologist and Fellow of the Geological Society, who has over 40 years' relevant experience within the sector.
Notes to Editors:
Jersey Oil & Gas is a UK E&P company focused on building an upstream oil and gas business in the North Sea. The Company owns an 18% interest in the P2170 licence, Blocks 20/5b & 21/1d, Outer Moray Firth, in which the operator, Equinor UK Limited, owns a 70% interest and CIECO V&C (UK) Limited owns a 12% interest.
The Company plans to build an upstream E&P portfolio via both organic development and acquisitions coinciding with the cyclical recovery in the oil price and the opportune buying market in the North Sea. The Company is involved in multiple acquisition opportunities and intends to draw on its management team's considerable experience, knowledge and expertise to deliver shareholder value from its stated growth strategy.
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