Jersey Oil and Gas PLC (LON:JOG) shares jumped almost 300% in Monday’s opening deals after it revealed a new oil discovery in the North Sea, with the side-track to the originally unsuccessful Verbier well hitting hydrocarbons.
The Statoil led exploration venture has proven the oil accumulation in what is described as good quality sands, and the results are now being evaluated alongside 3D seismic data to assess what the find means for the rest of the nearby acreage.
Statoil’s initial estimate of the discovery puts the size of the new discovery between 25mln and 130mln barrels of oil, and it added that there was a minimum of 25 mln barrels proven recoverable oil in the immediate vicinity of the well bore.
"The results show that we made the right decision to sidetrack the well and this discovery proves that there could be significant remaining potential in this mature basin,” said Jenny Morris, vice president for exploration for Statoil UK in a statement.
“We are convinced of the remaining, high-value potential on the UK continental shelf and the Verbier result certainly gives us the confidence and determination to continue our exploration efforts."
Andrew Benitz, Jersey chief executive, meanwhile, added: “We are delighted by the positive outcome of the Verbier sidetrack.
“The well has achieved its objective by encountering good quality, hydrocarbon-bearing sands, up dip from the initial well with the results exceeding pre drill expectations for the sidetrack."
JOG has an 18% stake in the Verbier venture, the acreage also includes Cortina and Meribel which could now be potential follow on exploration targets.