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Jersey Oil & Gas confirms summer follow-up drilling plans for Verbier discovery

At least one well will be drilled to follow-up and appraise the Verbier oil discovery this year
oil well drilling
Negotiations are underway with rig contractors

Jersey Oil & Gas Plc (LON:JOG) has told investors that a follow on to the Verbier discovery well is planned for this summer.

The company said in a statement that the co-venturers ( led by project operator Statoil) have now approved a work programme and budget for 2018, and it includes an appraisal of the Verbier oil discovery.

Negotiations are presently advanced for the contracting a drilling rig for the new Verbier programme, JOG said.

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

The company added that the programme is planned to comprise one appraisal well, plus an option for a sidetrack well.

JOG’s share of the work programme will be funded from existing cash reserves which amounted to £25mln at the end of December (a capital budget of £9mln to £11mln is envisaged for the year).

"We are pleased with the progress being made on the post-discovery technical work being undertaken by the P.2170 joint venture partnership and that plans to appraise the Verbier oil discovery have been confirmed,” said JOG chief executive Andrew Benitz.

READ: North Sea oil firms boosted as Chancellor announces raft of tax breaks to spur investment

He added: "We look forward to updating our shareholders in due course as drilling plans and further exploration activity progresses."

JOG owns a 12% stake in Verbier, where Statoil’s initial estimates have put the gross recoverable resources at some 69mln barrels oil equivalent (mean) – the estimates range from 25mln to 130mln barrels.

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Jersey Oil and Gas PLC Timeline

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