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Jersey Oil and Gas confirmed it has raised £20mln in share placing

JOG is expecting a new appraisal and exploration programme at Verbier, and it is now funded to cover drilling costs.
Offshore oil operations, North Sea
New shares are being issued at 200p each

Jersey Oil and Gas PLC (LON:JOG) has confirmed it has closed the books on its £20mln share placing, with 10mln new shares being issued at a price of 200p.

In late afternoon trading, the AIM-listed shares were changing hands at 211.5p each, down 16.7% on last night's close, holding above the placing price. 

The company noted that a number of directors - Marcus Stanton, Andrew Benitz, Ronald Lansdell, Scott Richardson Brown, Frank Moxon - and a further £4mln could be raised through an open offer to existing shareholders.

"I am delighted by the strong support we have received from a list of very high quality institutional investors and am delighted to provide the opportunity to our non-institutional shareholders to participate on the same terms,” said Andrew Benitz, Jersey chief executive.

“As we enter our next stage of growth, today's financing provides us with the ability to fund our anticipated appraisal and exploration commitments in P.2170 and a strong platform to deliver further shareholder value through the acquisition of producing assets."

Verbier second wind

The company has an 18% stake in the UK Seaward Licence P2170 in the North Sea where Statoil is the operator.

Statoil estimates the new Verbier discovery between 25 and 130mln barrels, with at least 25mln barrels seen as recoverable in the immediate vicinity of the discovery well.

At Verbier, the exploration well’s initial target was unsuccessful but Statoil decided to drill out a side-track targeting a separate up-dip prospect, and the gamble proved successful as it found a hydrocarbon accumulation in good quality sands.

Given that the average North Sea discovery is typically in the order of 20mln barrels, the initial discovery at Verbier represents an opportunity to make a significant project.

Jersey said in a statement on Friday morning that it believes Statoil will suggest further appraisal and exploration drilling in order to better define the prospectivity and commerciality of three key prospects - namely Verbier, Cortina and Meribel.

The AIM-quoted explorer’s own view anticipates the appraisal and exploration programmes taking place through 2018, prior to development with Verbier potentially reaching ‘first oil’ by around 2022.

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