18 September 2017
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Update re Verbier Well
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf ("UKCS") region of the North Sea, announces that, further to the Company's announcement of 11 September 2017, the wireline log data from the initial exploration well, received late on 12 September 2017, has now been evaluated by the P.2170 Joint Venture partnership led by the operator Statoil (U.K.) Limited ("Statoil"). Indications of the potential for hydrocarbons to be present in a smaller accumulation up dip of the 20/05b-13 Verbier exploration well cannot be ruled out. Accordingly, over the weekend, agreement was reached by the P.2170 Joint Venture partners to target this resource with a sidetrack exploration well. All necessary approvals have been received and operations have now commenced.
Taking into account JOG's carry position in relation to the P.2170 licence, it is currently expected that JOG's net cost liability for this sidetrack will be approximately £0.7m, which will be satisfied from the Company's existing cash reserves and forecast receipts. Drilling of the 20/05b-13Z sidetrack exploration well is expected to take between 25 to 35 days and a further announcement will be made in due course as appropriate.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"Whilst we have been disappointed by the results of the original Verbier exploration well, JOG is pleased to support the operator's recommendation to undertake the drilling of this sidetrack exploration well. The joint venture partnership has now identified the potential for late Jurassic sands, similar to the water bearing sands encountered in the 20/05b-13 well, to be present within the hydrocarbon window up dip of the original well location, offering the possibility of a potentially lesser, but still commercially attractive, hydrocarbon accumulation."
Enquiries:
Jersey Oil and 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 |
Arden Partners plc |
Chris Hardie Benjamin Cryer |
Tel: 020 7614 5900 |
BMO Capital Markets |
Neil Haycock Tom Rider |
Tel: 020 7236 1010 |
Camarco |
Billy Clegg Georgia Edmonds James Crothers |
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 Regulation (EU) No. 596/2014.
Notes to Editors:
Jersey Oil & Gas is a UK E&P Company focused on building a production focussed company in the North Sea. The Company owns an 18 per cent. interest in the P.2170 licence, Blocks 20/5b & 21/1d, Inner Moray Firth.
The Company plans to build a production portfolio via acquisitions coinciding with the cyclical recovery in the oil price and the current opportune buying market in the North Sea. The Company is involved in multiple sales processes and intends to draw on its management team's considerable experience, knowledge and expertise to deliver shareholder value from its stated production acquisition strategy.
