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Energy

Jersey Oil & Gas reveals Verbier upgrade ahead of summer exploration well

Partner Statoil is slated to lead an exploration well on Verbier prospect in the summer.

Jersey Oil & Gas Plc (LON:JOG) has highlighted an upgrade of the potential prize at the Verbier exploration project in the North Sea.

Verbier, to be drilled by Statoil in the coming months, is now estimated to host some 162mln barrels of oil equivalent resources, up from a prior estimate of 118mln barrels.

Perhaps significantly, the chance of success for the upcoming well was also upgraded - to 29% from 26%.

WATCH: Jersey Oil & Gas boss believes Verbier a "material project" ...

WATCH: Verbier project a "no-brainer", says Zak Mir ...

Additionally, the resource potential of the Cortina prospect also increased - to 124mln barrels from 91mln - and the chance of success was set at 19%.

Jersey chief executive Andrew Benitz said: “We are very pleased to provide the key findings of the independent Competent Person's Report which indicate a significant uplift in prospective resources for the Verbier prospect on licence P.2170, compared to the previously announced unaudited management estimates, together with a modest increase in the chance of success for this prospect.

“This follows further independent technical work conducted by JOG on the Verbier prospect and we are grateful for the support received from our shareholders including at the placing in November 2016 that has enabled us to further these important studies ahead of the planned upcoming exploration well.”

Jersey also told investors that it has appointed BMO Capital Markets as its joint broker.

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