Jersey Oil & Gas Plc (LON:JOG) saw its shares bounce after the firm gave investors some fresh hope that value could be salvaged from the Verbier exploration well, with news that a side-track is being drilled to test another target.
It was announced last week that Verbier’s main target was unsuccessful, with the reservoir found to be water bearing.
"Whilst we have been disappointed by the results of the original Verbier exploration well, JOG is pleased to support the operator's recommendation to undertake the drilling of this sidetrack exploration well,” said Andrew Benitz, Jersey chief executive.
READ: Jersey Oil & Gas reveals disappointing result for Statoil’s Verbier well
“The joint venture partnership has now identified the potential for late Jurassic sands, similar to the water bearing sands encountered in the 20/05b-13 well, to be present within the hydrocarbon window up dip of the original well location, offering the possibility of a potentially lesser, but still commercially attractive, hydrocarbon accumulation.”
Jersey has an 18% stake in the Statoil operated Verbier well, and it expects it expects it share of the additional well cost will be around £700,000.
The side-track is expected to take between 25 to 35 days.
READ: Catalysts on the way for Jersey Oil & Gas as Verbier drilling gets underway
In late afternoon trading, Jersey Oil & gas shares were nearly 28%, or 18.5p higher at 85.0p.
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