Jersey Oil & Gas Plc (LON:JOG) has told investors that a follow on to the Verbier discovery well is planned for this summer.
The company said in a statement that the co-venturers ( led by project operator Statoil) have now approved a work programme and budget for 2018, and it includes an appraisal of the Verbier oil discovery.
Negotiations are presently advanced for the contracting a drilling rig for the new Verbier programme, JOG said.
The company added that the programme is planned to comprise one appraisal well, plus an option for a sidetrack well.
JOG’s share of the work programme will be funded from existing cash reserves which amounted to £25mln at the end of December (a capital budget of £9mln to £11mln is envisaged for the year).
"We are pleased with the progress being made on the post-discovery technical work being undertaken by the P.2170 joint venture partnership and that plans to appraise the Verbier oil discovery have been confirmed,” said JOG chief executive Andrew Benitz.
He added: "We look forward to updating our shareholders in due course as drilling plans and further exploration activity progresses."
JOG owns a 12% stake in Verbier, where Statoil’s initial estimates have put the gross recoverable resources at some 69mln barrels oil equivalent (mean) – the estimates range from 25mln to 130mln barrels.