16 January 2019
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
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 it has been advised by Equinor UK Limited ("Equinor UK"), operator of the P2170 (Blocks 20/5b & 21/1d) licence area (the "P2170 licence"), that the West Phoenix rig has, on 16 January 2019 moved off contract with Equinor Norway and will shortly come on contract with Equinor UK to commence operations on the three well UKCS drilling programme operated by Equinor UK, which includes the appraisal drilling of the Verbier discovery, the third well in the programme.
The Verbier discovery, in which the Company holds an 18 per cent. interest, is located in Block 20/5b. Initial operator estimates of gross recoverable resources associated with the Verbier discovery are between 25 and 130 million barrels of oil equivalent ("mmboe") with an estimated mean of 69 mmboe. The purpose of the planned appraisal well is to determine the potential volume range in the discovery.
JOG is pleased to advise that a 'fast-track' processed volume of data from the 3D seismic survey shot by PGS over the P2170 licence area and certain offset acreage earlier in the year was delivered on 13th December 2018. Interpretation of this new dataset has commenced.
JOG is also pleased to report that the P2170 work programme and budget for 2019 has been approved. The Company's share of the work programme will be funded from its existing cash reserves, with total Capex for 2019 expected to be in the range of £7 million to £10 million. This includes the Verbier appraisal programme expenditure which has moved from 2018 into 2019 and remains in line with previous guidance.
JOG further notes that, effective 24th November 2018, the Oil & Gas Authority has confirmed the new licensed area as illustrated on our website at, www.jerseyoilandgas.com/our_assets/verbier/, in order to satisfy the Mandatory Surrender Area required, under the terms of the Licence, at the end of the Initial Term. The licensed area retains all identified prospectivity including Verbier, Cortina and Meribel.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are pleased to note the Equinor operated UKCS drilling operations have now commenced and look forward to the safe and successful drilling of the upcoming Verbier appraisal well programme.
"We are now interpreting the new 3D seismic dataset and look forward to furthering our knowledge of Verbier and the additional prospectivity in and around P2170."
Jersey Oil and Gas plc
Andrew Benitz, CEO
Tel: 020 3757 4983
Strand Hanson Limited
Tel: 020 7409 3494
Arden Partners plc
Tel: 020 7614 5900
BMO Capital Markets Limited
Tel: 020 7236 1010
Tel: 020 3757 4983
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. This licence contains the Verbier oil discovery, with initial operator estimates of gross recoverable resources of between 25 and 130 million barrels of oil equivalent ("mmboe") with an estimated mean of 69mmboe.
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
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