Jersey Oil & Gas Plc (LON:JOG) chief executive Andrew Benitz said he is “very excited” over the prospects for the company’s key Verbier asset as partner and project operator Statoil advances an appraisal programme.
Verbier was discovered with an exploration well almost a year ago, and, Statoil has subsequently put in place plans for a follow-up programme. Statoil has secured regulatory approval and has awarded contracts for the well, scheduled for the fourth quarter of this year.
Jersey is fully-fund for its share of the programme’s costs, ending the first half with £22.1mln of cash.
Current estimates put Jersey’s share of the cost in the range of £9-11mln, with only £7-8mln likely to be incurred during the 2018 financial year.
"It is encouraging to note the progress that is being made on our flagship asset and it is evident from the appraisal work programme that we have announced, that our co-venturers in P2170 collectively see significant potential across our area of interest,” Benitz said in Jersey’s financial results statement for the first half.
"Management remain very excited by the investment case and continue to believe that there is significant value potential for shareholders in the event of a successful outcome on the Verbier appraisal well programme and, importantly, in the additional opportunity set in this prolific part of the Central North Sea."
In terms of financials, the pre-revenue explorer reported a £857,455 loss for the six months to June 30.