Jersey Oil & Gas (JOG) plans to add a further 12% to its central North Sea interests with the acquisition of licence P2170 blocks 20/5b & 21/1d containing the Verbier oil discovery.
ACREAGE
The agreement sees the company acquire the entire issued share capital of CIECO V&C (UK) Ltd, owned by ITOCHU Corporation and Japan Oil, Gas and Metals National Corporation (JOGMEC).
The transaction is subject to the Oil & Gas Authority’s approval for a field development plan (FDP), currently in the concept phase, for Verbier.
JOG will pay £150,000 in cash and a contingent payment of £1.5 million with a further £1m cash payable not later than one year after first oil from all or any part of the area subject to the FDP.
The company posted a strong cash position of £8.9m in its interim results in September.
The new blocks, within JOG’s Greater Buchan Area (GBA) development project, would increase its ownership of “multiple high-impact exploration opportunities” including “drill-ready” prospects of Verbier Deep, Wengen and Cortina.
JOG estimates its current acreage holds more than 140 million barrels of oil equivalent of discovered mean recoverable resources net, with additional “significant” exploration potential.
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