Rig Mobilised for Drilling of "Verbier" Prospect

RNS Number : 8441J

Jersey Oil and Gas PLC

03 July 2017

 

3 July 2017

Jersey Oil and Gas plc

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

Rig Mobilised for Drilling of the "Verbier" Prospect in August 2017

Jersey Oil & Gas (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 that Statoil (U.K.) Limited ("Statoil"), operator of the UK Seaward Licence P.2170 Blocks 20/5b & 21/1d, has recently mobilised the semi-submersible rig Transocean Spitsbergen from Bergen, Norway. The rig will undertake a three well exploration drilling campaign in the UKCS that will be conducted on the Mariner, Jock Scott and Verbier licences (of which Statoil is the operator).

The Verbier prospect, in which the Company holds an 18 per cent. interest, is located in Blocks 20/5b & 21/1d. The Verbier well is anticipated to spud during August 2017 and is expected to take between 30-70 days to complete, with plans to drill a possible sidetrack well contingent on results.

Statoil will fund all costs up to US$25 million in respect of the Verbier well, in addition to which JOG benefits from a further carry of 10 per cent. from its co-venturer CIECO Exploration and Production (UK) Limited ("CIECO").

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

"We are delighted to announce that Statoil has now mobilised the rig, Transocean Spitsbergen, which is currently expected to commence drilling the Verbier prospect during August. The drilling of a well to test the Verbier prospect is the culmination of a great deal of technical work and operational planning by the Verbier joint venture partnership, and we are grateful for the support received from our shareholders during this time."

The full text of Statoil's press announcement released today can be found below.

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	Chris Hardie Benjamin Cryer	Tel: [phone]
BMO Capital Markets	Neil Haycock Tom Rider	Tel: [phone]
Camarco	Billy Clegg Georgia Edmonds  James Crothers	Tel:  [phone]

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.

Notes to Editors:

Jersey Oil and Gas is a UK E&P Company focused on the North Sea. The Company owns an 18 per cent. interest in the P.2170 licence, Blocks 20/5b & 21/1d, Inner Moray Firth, where it is participating in a Statoil funded and operated exploration well on the Verbier prospect in summer 2017. A recent Competent Persons Report, carried out by ERC Equipoise Ltd estimates the Verbier prospect to contain 162MMboe gross mean prospective resources. The licence also contains the Cortina prospect (124mmboe gross mean prospective resources) and Meribel lead which are both Upper Jurassic targets like Verbier.

The Company plans to potentially build a major 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 experience, knowledge and expertise to deliver shareholder value from its stated production acquisition strategy.

Statoil Press Release - 3 July 2017

"Kick-off for Statoil's UK exploration campaign

Statoil will soon commence a 3 well exploration drilling campaign on the UK continental shelf. In early July, the Transocean Spitsbergen semi-submersible rig will spud the first well in the campaign.

"This is an exciting campaign testing three very different opportunities on the UKCS. We hope to make discoveries that can add value to existing projects and also provide the resources necessary for new developments on the UKCS," says Jenny Morris, vice president Exploration, UK.

The wells will be drilled in a continuous campaign that is expected to last approximately 2-3 months. The first well, Mariner Segment 9, could prove additional resources and increase the extent of the Mariner Field.

After completing the well, expected to take between 15 and 25 days, the rig will move to Jock Scott, a prospect on the underexplored margins of the Viking Graben. The well is expected to be completed in 20-40 days.

The last well of the campaign will be the Verbier opportunity in the Moray Firth area. The well is assumed to take 30-70 days to complete.

"We have three exciting wells to test with a proven and efficient rig that will enable us to continue to develop our understanding of the full exploration potential of this mature basin and hopefully add new commercial reserves to our UK portfolio," says Morris.

Information box:

Mariner Segment 9 partners: Statoil 65.1111%, JX Nippon 20%, Siccar Point Energy 8.889%, Dyas 6%

Jock Scott partners: Statoil 75%, BP Exploration Operating Company 25%

Verbier partners: Jersey Oil and Gas 18 %, CIECO Exploration and Production (UK) 12 %"

www.statoil.com                                                                                                     

 

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