Jersey Oil and Gas PLC (LSE:JOG, FRA:TPC1) (LSE:JOG) told investors that it will not proceed into the next phase of the Zermatt (P2497) and Glenn (P2499) licences in the North Sea, and accordingly the licences will cease on 29 August.
The company, in a statement, noted that entering the next phase would have committed it to drill a well on each licence.
It added that neither Zermatt nor Glenn feature in the planned Greater Buchan Area (GBA) development project concept, announced in March, which sees the company build up a production hub over three phases.
Moreover, JOG noted that the discoveries in Zermatt were seen as sub-commercial, meanwhile the highest ranked exploration prospects in the Glenn area are behind drill-ready targets in the Verbier licence area (which is included in GBA).
"JOG's management has taken the pragmatic and cost-effective decision not to proceed with firm well commitments for the non-core Glenn and Zermatt licences in the context of efficient and targeted capital allocation," said chief executive Andrew Benitz.
“JOG fully respects the OGA's Asset Stewardship Expectations which govern the delivery of exploration and appraisal work programmes, and we continue to work closely with the OGA as we progress our plans for the company's core GBA Development project."