6 October 2016
Jersey Oil and Gas plc
("Jersey Oil & Gas" or the "Company")
Completion of Farm-out to Statoil
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, is pleased to announce that, further to the announcement of 23 August 2016, the Company, alongside its co-venturer, CIECO Exploration and Production (UK) Limited ("CIECO"), has now satisfied all conditions precedent. Following receipt of funds by all parties, which is expected imminently, JOG will have completed on the sale and purchase agreement ("SPA") with Statoil (U.K.) Limited ("Statoil"), a leading multinational oil and gas company, for the farm-out to Statoil of, in aggregate, a 70 per cent. working interest in UK Seaward Licence P.2170, Blocks 20/5b and 21/1d (the "P.2170 Licence") located in the UK Central North Sea (the "Farm-out").
In accordance with the terms of the Farm-out, the Company will receive a cash consideration of US$540,000 from Statoil. The balance of the US$1.2 million cash consideration, due to JOG as part of the farm-out agreement, is payable to the Company's partners in the Athena asset, in accordance with the Company's historical settlement agreement.
Post completion of the Farm-out, Statoil will hold 70 per cent. of Licence P.2170 as operator and will fund all costs up to US$25 million in respect of the first exploration well to be drilled. The Company retains an 18 per cent. interest, of which 10 per cent. will continue to be carried by CIECO, pursuant to the pre-existing arrangements between the parties, and CIECO will retain a 12 per cent. interest.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are delighted to be completing this farm-out to Statoil. The P.2170 Licence area has significant exploration potential for the discovery of oil and we look forward to drilling one of the prospects with our partners, conceivably during 2017."
Enquiries:
Jersey Oil & Gas plc |
Andrew Benitz, CEO |
C/o Camarco: Tel: 020 3757 4983 |
Strand Hanson Limited |
James Harris Matthew Chandler James Bellman |
Tel: 020 7409 3494 |
FirstEnergy Capital LLP |
Hugh Sanderson David van Erp |
Tel: 020 7448 0200 |
Camarco |
Billy Clegg Georgia Mann Sean Blundell |
Tel: 020 3757 4983 |
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
