Jersey Oil & Gas plc (LON:JOG) told investors that drilling operations have now begun for the Verbier appraisal well, in the UK North Sea.
The company owns an 18% stake in the well which aims to refine estimates of Verbier’s recoverable resource potential - presently seen in a wide range of 25mln to 130mln barrels - and, potentially, advance the project towards a development scenario.
It anticipates total capex for the well will be within previously stated guidance.
"Further to the Verbier oil discovery announced in October 2017, we are delighted to announce that drilling operations to appraise Verbier have now commenced and look forward to participating in a safe and successful well programme, with well results expected by mid Q2 2019," said Andrew Benitz, Jersey Oil & Gas chief executive.
Verbier is being led by Norway’s state-backed operator Equinor (formerly called Statoil) and Jersey holds 18%.
It is located around 100 kilometres offshore, in relative proximity to pipeline infrastructure.
A 2017 exploration well unearthed a substantial oil resource, though presently the volumes are estimated in a broad range of 25mln to 130mln barrels - the gross oil value was estimated up to $1.75bn and a conservative ‘low case’ net estimate saw JOG’s stake worth around £31mln.