It has been confirmed with the UK authorities that Statoil is committed to drilling an exploration well, in partnership with Jersey Oil and Gas PLC (LON:JOG), next year.
Jersey in a statement said that Statoil, as operator, formally communicated to the Oil and Gas Authority that a firm well is committed on the P.2170 Licence in the summer season of 2017.
As a result of the formal confirmation an extension of the ‘drill-or-drop’ phase of the licence is not required, Jersey added.
The AIM quoted company’s 18% interest in the exploration programme is ‘carried’ by Statoil due to a joint venture agreement signed earlier this year.
Andrew Benitz, Jersey Oil and Gas chief executive, said: “We are delighted to confirm the company's participation in a well to be drilled on the highly material and prospective Verbier prospect in which Jersey Oil & Gas holds an 18% interest.
“We believe the planned well could be one of the most exciting exploration prospects to be drilled in the UKCS in recent years."