Jersey Oil & Gas Plc (LON:JOG) told investors that it expects that a rig contract will be in place in the near future for the Verbier prospect in the North Sea.
Project operator Statoil is due to drill the exploration well this summer.
It highlighted that the company’s share of well costs are covered by Statoil, up to US$25mln.
In addition to Statoil’s work, Jersey has been carrying out its own technical studies which will help improve the group’s understanding of the Verbier prospect.
"We are pleased to report the continued progress being made by Statoil in preparation for drilling the Verbier prospect this summer, as well as our ongoing additional technical evaluation of the prospect,” said Andrew Benitz, Jersey Oil & Gas chief executive.
“Our team also remains actively involved in multiple sales processes targeting possible production acquisitions in line with our stated strategy."
Acquisition strategy targeting production
The company highlighted that it continues to be involved in multiple sales processes, and it remains confident.
Jersey says it is in a strong position to deliver shareholder value from its stated production acquisition strategy.
“Several large-scale North Sea divestments have been announced by industry participants in recent months. Such divestments have given a great deal of encouragement that a new wave of deal activity is beginning in the UKCS,” it said.
Chance of extra payment from Azinor
Jersey also revealed it could be set to receive a US$2mln payment because Azinor Catalyst is planning to drill an exploration well on the Partridge prospect (previously known as Homer).
As a result of a farm-out, agreed in January, the company would be due US$2mln if a discovery is made that satisfies certain technical criteria.
Furthermore, if a discovery is made, a further US$2mln would be due to Jersey when the project advances to a formal field development.