P.2170, 20/5b & 21/1d - Competent Person's Report
27 March 2017
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Increased resource estimates for the Verbier and Cortina prospects on Licence P.2170, Blocks 20/5b & 21/1d and Appointment of Joint Broker
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 an independent assessment of resource estimates in relation to UK Seaward Licence P.2170, Blocks 20/5b & 21/1d, in which the Company holds an 18 per cent. interest, and the associated prospects (Verbier and Cortina), has been completed by ERC Equipoise Ltd ("ERCE").
Highlights
· Mean Prospective Resources attributed to Licence P.2170 for the Verbier prospect increased to 162 Million barrels of oil equivalent ("MMboe") from 118 MMboe and the chance of success increased to 29% from 26%
· Contingent Resources relating to discovery well 20/5a-10Y identified
· Mean Prospective Resources for the Cortina prospect increased to 124 MMboe from 91 MMboe with a chance of success of 19%
· Drilling of the Verbier exploration well by Statoil, Operator, planned for Summer 2017
· BMO Capital Markets appointed as Joint Broker
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are very pleased to provide the key findings of the independent Competent Person's Report which indicate a significant uplift in Prospective Resources for the Verbier prospect on licence P.2170, compared to the previously announced unaudited management estimates, together with a modest increase in the chance of success for this prospect. This follows further independent technical work conducted by JOG on the Verbier prospect and we are grateful for the support received from our shareholders including at the placing in November 2016 that has enabled us to further these important studies ahead of the planned upcoming exploration well.
"We are also pleased to bring BMO Capital Markets on board as joint broker and look forward to working with them as we pursue the Company's growth objectives."
UK Seaward Licence P.2170, Blocks 20/5b & 21/1d ("P.2170") - Competent Person's Report
JOG commissioned ERCE, as a competent person, to review the Company's latest geological, geophysical and petrophysical interpretations of the P.2170 licence area and the named prospects, Verbier and Cortina.
ERCE has now completed this work and made independent estimates of Prospective Resources, Contingent Resources and the Geological Chance of Success ("Pg") for the prospects.
Verbier
ERCE estimates gross mean Prospective Resources attributable to P.2170 to be 162 MMboe, with a Pg of 29%., compared with the unaudited mean Prospective Resources of 118 MMboe and Pg of 26%. previously estimated and disclosed by JOG. In addition, ERCE estimates gross 2C Contingent Resources attributable to P.2170 of 2.0 MMboe associated with the 20/5a-10Y well.
Cortina
ERCE estimates mean Prospective Resources attributable to P.2170 for the Cortina prospect to be 124 MMboe with a Pg of 19% compared to the unaudited mean Prospective Resources of 91 MMboe previously estimated and disclosed by JOG.
Competent Person's Report - Executive Summary
ERCE has completed an audit of Prospective Resources, including estimates of Geological Chance of Success (Pg), attributable to the Verbier and Cortina prospects. Statoil (U.K.) Limited ("Statoil") operates the licence with a 70% working interest. CIECO Exploration and Production (UK) Ltd hold a 12% working interest and Jersey Oil and Gas the remaining 18%.
The Verbier prospect is located along the northern flank of the Buchan High. Well 20/5a-10Y, drilled by Talisman in 2006, penetrated 46ft (14m) of oil-bearing Upper Jurassic sandstone within the Kimmeridge Clay Formation, the "J64 Sands". This well lies along strike from the planned 2017 Verbier exploration well.
An exploration well is planned for this summer to test the Verbier prospect.
Competent Person's Resource Estimates
ERCE reports a range of Contingent Resources related to discovery Well 20/5a-10Y. ERCE assigns Prospective Resources to the trap, which will be tested by the planned exploration well. The stock tank oil initially in place (STOIIP) and Prospective Resources for Verbier in P.2170 are set out in Table 1, along with the Geological Chance of Success ("Pg").
Table 1: Verbier Prospect - Prospective Resources and Contingent Resources (P.2170)
|
Verbier (J64) Contingent Resources ERCE (P2170) |
1C |
2C |
3C |
|
STOIIP (MMstb) |
4.0 |
5.7 |
8.3 |
|
Recoverable Oil (MMstb) |
1.0 |
1.8 |
3.3 |
|
Recoverable Gas (Bscf)* |
0.5 |
1.0 |
1.9 |
|
Total Contingent Resources (MMboe) |
1.1 |
2.0 |
3.6 |
|
PG = 1.0 |
|||
*Solution Gas
|
Verbier (J64) - Prospective Resources ERCE (P2170) |
Low |
Best |
High |
Mean |
|
STOIIP (MMstb) |
135 |
340 |
855 |
440 |
|
Recoverable Oil (MMstb) |
38 |
108 |
301 |
148 |
|
Recoverable Gas (Bscf)* |
20 |
58 |
168 |
82 |
|
Total Prospect Resources (MMboe) |
42 |
117 |
329 |
162 |
|
Pg = 0.29 |
||||
*Solution Gas
Note: boe, converted to oil using a conversion rate of one barrel of oil for six thousand standard cubic feet of natural gas
The Cortina prospect lies approximately 6 km due east of the Verbier prospect. The trap is broadly similar to Verbier, but lies at a greater depth. It consists of stratigraphic and dip-closure in the east, north and west, with fault-seal required towards the south. Like Verbier, the seismic image suggests a fan shaped deposition. The STOIIP and the Prospective Resources for Cortina are set out in Table 2, along with the Geological Chance of Success.
Table 2: Cortina Prospect - Prospective Resources (P.2170)
|
Cortina (J64) - Prospective Resources ERCE (P2170) |
Low |
Best |
High |
Mean |
|
STOIIP (MMstb) |
129 |
281 |
612 |
338 |
|
Recoverable Oil (MMstb) |
36 |
89 |
219 |
114 |
|
Recoverable Gas (Bscf)* |
19 |
48 |
123 |
63 |
|
Total Prospective Resources (MMboe) |
39 |
97 |
240 |
124 |
|
Pg = 0.19 |
||||
*Solution gas
Note: boe, converted to oil using a conversion rate of one barrel of oil for six thousand standard cubic feet of natural gas
Appointment of Joint Broker
JOG is also pleased to announce the appointment of BMO Capital Markets as Joint Broker to the Company.
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 |
Vicary Gibbs 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.
Qualified Person's Statement:
The information contained in this announcement has been reviewed and approved by Ronald Lansdell, Chief Operating Officer of Jersey Oil and Gas, qualified Geologist and Fellow of the Geological Society, who has over 40 years' relevant experience within the sector.
The estimates provided in this announcement are based on the Petroleum Resources Management System ("PRMS") published by the Society of Petroleum Engineers ("SPE") and are reported consistent with the March 2007 SPE/WPC/AAPG/SPEE PRMS guidelines.
Glossary:
|
Bscf
|
Billion standard cubic feet |
|
Contingent Resources |
those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects but which are not currently considered to be commercially recoverable due to one of more contingencies. Contingent resources are a class of discovered recoverable resources;
|
|
Geological Chance of Success or Pg |
the estimated chance, or probability, of making an oil and gas discovery in an exploration well;
|
|
MMboe |
million barrels of oil equivalent;
|
|
MMstb
|
million stock tank barrels of oil |
|
PRMS
|
Petroleum Resources Management System published by the Society of Petroleum Engineers
|
|
Prospective Resources |
those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations;
|
|
STOIIP |
stock tank oil-initially-in-place |
This information is provided by RNS
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