Proactive Investors - Run By Investors For Investors

New hope for Jersey Oil & Gas’s Verbier well as Statoil recommends side-track

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
Offshore oil operations, North Sea
The side-track is expected to take between 25 to 35 days.

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.

 -- Adds share price --

View full JOG profile View Profile

Jersey Oil and Gas PLC Timeline

Related Articles

oil and gas operations
September 20 2018
Spirit Energy, majority-owned by British Gas parent Centrica, is to fund a programme of new wells and cover Hurricane's costs for initial field development work for the Greater Warwick Area
1542291002_5485566276_150f71870a_o.jpg
November 15 2018
This party is offering financing alongside services for the OPL226 development project and is reported to have strong familiarity with the region.
oil well
February 06 2019
Company has exploration and production interests in shale licences in the US and Australia

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use