Jersey Oil and Gas plc (JOG) said it was in advanced exclusive discussions with a “significant UK North Sea operator” for the farm-out of the Greater Buchanan Area (GBA) in the central North Sea.
LICENCES
JOG owns operatorship and 100% working interests in blocks that contain the Buchan oil field and J2 oil discovery.
It additionally holds a 100% working interest in the P2170 Licence Blocks 20/5b & 21/1d, that contain the Verbier oil discovery and other exploration prospects.
NEGOTIATIONS
The company announced in November 2022 that it hoped to sign a deal by the end of 2022 or Q1 2023.
JOG today said it had now agreed heads of terms of a material interest in the licences to the potential partner, and both parties were working towards finalising “in the near future” a fully termed agreement.
The agreed exclusivity period will last until 30 April 2023.
“We are pleased to be in advanced exclusive negotiations with a well-funded industry heavyweight and whilst there can be no guarantees of a successful conclusion, we are aiming to finalise the farm-out in the near future and look forward to updating shareholders shortly,” added chief executive Andrew Benitz.