Greater Buchan Area Integrated Studies Agreement

RNS Number : 1773G

Jersey Oil and Gas PLC

16 March 2020

 

16  March 2020

Jersey Oil and Gas plc

("Jersey Oil & Gas", "JOG" or the "Company")

Greater Buchan Area Joint Integrated Studies Agreement

Jersey Oil & Gas plc (AIM:JOG), an independent upstream oil and gas company ‎focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to announce it has established and will lead the Greater Buchan Area Joint Integrated Studies Agreement (the "Agreement") between neighbouring field operators, to undertake and complete technical and commercial evaluation studies for a collaborative development of the wider Greater Buchan Area, which contains discovered oil and gas resources in excess of 200 million barrels of oil equivalent ("boe").

A key objective of the studies under the Agreement is to establish whether a collaborative development would lead to a reduction in development costs and an increase in value for all participants in a new production hub in the area, potentially including electrification in line with the Oil & Gas Authority's ("OGA") Maximising Economic Recovery ("MER") strategy for the UKCS and reducing CO₂ emissions. 

Fields, Discoveries and Participants Involved

· Buchan, J2 and Glenn - operated by Jersey Oil & Gas (100%);

· Verbier - operated by Equinor UK Limited (70%) (pending completion of the Company's acquisition announced on 27 January 2020) alongside its partners Jersey Petroleum Limited (18%) and CIECO Exploration and Production Limited (12%);

· Avalon - operated by Ping Petroleum UK Limited (50%) alongside its partner Summit Exploration and Production Limited (50%); and

·     Leverett - operated by Zennor Resources (N.I.) Limited (100%).

A map of the licenses and operators who will form part of the study can be viewed here: https://www.jerseyoilandgas.com/wp-content/uploads/2020/03/jisa-map.png

Andrew Benitz, CEO of Jersey Oil and Gas, commented :

"We are delighted to be progressing this important study to evaluate the technical and commercial benefits of working together with neighbouring operators to potentially develop over 200 million boe of discovered oil and gas within the wider Greater Buchan Area."

Scott Robertson, Director of Operations at the OGA said :

"I am delighted with this collaboration agreement in the Greater Buchan Area, particularly given collaboration was a key component of the OGA's vision for the Greater Buchan Area through the 31st Supplementary Licensing Round award in 2019.  Oil and gas will remain an important part of the UK's energy mix for the foreseeable future as we transition to net zero.  The OGA is encouraged by the collaborative and energy efficient example Jersey Oil & Gas is setting."

Enquiries :

Jersey Oil and Gas plc	Andrew Benitz, CEO		C/o Camarco: Tel: [phone]
Strand Hanson Limited	James Harris Matthew Chandler James Bellman		Tel: [phone]
Arden Partners plc	Paul Shackleton Benjamin Cryer		Tel: [phone]
BMO Capital Markets Limited	Jeremy Low Tom Rider		Tel: [phone]
Camarco	Billy Clegg James Crothers		Tel: [phone]

Qualified Person's Statement :

The information contained in this announcement has been reviewed and approved by Ronald Lansdell, Chief Operating Officer of Jersey Oil & Gas, a qualified Geologist and Fellow of the Geological Society, who has over 40 years' relevant experience within the sector.

Notes to Editors :

Jersey Oil & Gas is a UK E&P company focused on building an upstream oil and gas business in the North Sea. The Company holds a significant acreage position within the Central North Sea referred to as the Greater Buchan Area, which includes operatorship and 100% working interests in blocks that contain the Buchan oil field and J2 and Glenn oil discoveries, and, following the acquisition of an additional 70% working interest announced in late January 2020 will, subject to completion, also assume operatorship of and hold an 88% working interest in the P2170 Licence, Blocks 20/5b & 21/1d,  that contains the Verbier oil discovery.

JOG's acreage is estimated by management to contain more than 140 million boe of discovered mean recoverable resources net to JOG, in addition to significant exploration upside potential.  JOG is currently progressing the appraise and select phases of a Field Development Plan ("FDP") for the Greater Buchan Area.

JOG is focused on delivering shareholder value and growth through creative deal-making, operational success and licensing rounds. Its management is convinced that opportunity exists within the UK North Sea to deliver on this strategy and the Company has a solid track-record of tangible success.

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.

 

END

 

 

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