Jersey Oil and Gas PLC (LON:JOG) has revealed results from the Equinor-operated Verbier appraisal well which has failed to deliver the potential upside case for the project.
The well, designed to confirm and upgrade resources, did not encounter the targeted Upper Jurassic sands as anticipated.
It means that the contingent resource estimates for Verbier will now be revised towards the lower end of the initial resource estimate of 25mln barrels oil equivalent, Jersey said.
Consequently, the approach to the discovery’s development will likely also change now, although Jersey told investors that it remains confident that Verbier will be a commercially viable project.
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It highlighted that a large part of Verbier’s mapped area located to the north remains untested, and, additional resource upside potential was identified in a deeper horizon beneath the Verbier discovery.
Jersey said that this potential will be evaluated via new seismic data and will be considered for future drilling, alongside the nearby Cortina prospect.
"We are both surprised and disappointed by the results of our appraisal well,” said Andrew Benitz, Jersey Oil & Gas chief executive.
“JOG remains confident that Verbier is a commercially viable development project that could be further enhanced by the potential for a new area hub development, together with undeveloped discoveries that sit in close proximity to Verbier.
“Verbier has been a play-opener for JOG and we remain excited about the growth potential surrounding this valuable asset.”
Benitz added that Jersey is well-funded to pursue our growth plans and will continue to assess various acquisition opportunities.