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Jersey Oil and Gas lands significant acreage in North Sea licensing round

"We are delighted to announce this transformational event,” said Andrew Benitz, Jersey chief executive.

oil and gas operations
It has 100% of the asset and Equinor has an option over 50%

Jersey Oil and Gas PLC (LON:JOG) told investors that it has been awarded significant acreage through the latest North Sea licensing round.

It has landed 100% of three blocks hosting the Buchan oil field and the J2 oil discovery. The acreage is contiguous with JOG's existing interest in Licence P2170 which contains the Verbier discovery.

The Greater Buchan Area, including the parts within P2170, is estimated to contain more than 100mln barrels of oil equivalent in discovered mean recoverable resources.

READ: Jersey Oil & Gas and partners regroup after Verbier well

There is also more than 300mln barrels of prospective resources within the acreage.

Equinor, Jersey’s partner at Verbier, has agreed an option deal for a 50% interest in the Buchan Blocks. It has three months to make a decision.

In the meantime, Jersey will begin work towards a field development plan with a view to ‘first oil’ by 2024.

"We are delighted to announce this transformational event,” said Andrew Benitz, Jersey chief executive.

“Prior to these awards, JOG's net share of discovered resources in Verbier were estimated at 4.5 mmboe.  Today's awards add an estimated 105 mmboe of discovered resources net to JOG, in addition to a material uplift in new prospective resources.

“This represents a highly significant value enhancing milestone for our shareholders comprising 100% equity interests and operatorship of key development ready assets with the potential to create a major new area hub within the Greater Buchan Area.”

Benitz added: “By way of low-risk accumulation of discovered resource volumes, this is by far the most significant event for JOG since its inception and we are excited to start work on this new project immediately.”

Quick facts: Jersey Oil and Gas PLC

Price: 155 GBX

LSE:JOG
Market: LSE
Market Cap: £33.84 m
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