Jersey Oil & Gas plc (JOG) said it hoped for a farm-out agreement by the end of 2022 or during Q1 2023 for its assets in the Central North Sea.
VERBIER EXTENSION
The news comes as the company announced that the North Sea Transition Authority (NSTA) had extended its P2170 ‘Verbier’ licence for a second term.
The additional time means that the licence is now aligned with JOG’s P2498 ‘Buchan’ licence with the current phase expiring end of August 2023.
JOG added that the extension was also in keeping with its strategy of developing the Greater Buchan Area (GBA) as an area-wide development plan.
The company holds operatorship and 100% working interest in blocks that contain the Buchan oil field and J2 oil discovery.
It also owns 100% working interest in the P2170 licence Blocks 20/5b & 21/1d, that contain the Verbier oil discovery and other exploration prospects.
DISCUSSIONS
JOG also welcomed retention of the investment allowance in the recent amendments to the energy profits levy, as it continues commercial discussions on the GBA farm-out.
“We are pleased that the NSTA has agreed to extend the second term of the Verbier licence in order to align it with the rest of our GBA asset base,” said chief executive Andrew Benitz.
“Although multiple fiscal changes have slowed progress with closing out commercial farm-out discussions, we look forward to a successful conclusion if not by the end of the year then certainly in Q1 2023.”