Jersey Oil & Gas plc (JOG) announced it will not progress with its non-core licences P2497 Block 20/4c (Zermatt) and P2499 Block 21/2a (Glenn) in its Greater Buchan Area (GBA) in the Central North Sea.
SELECTED CONCEPT
The selected concept for the GBA development is planned to be executed in three phases none of which included Glenn or Zermatt.
“In the case of Glenn, this was due to the current sub-commercial status of the Glenn and Glenn North oil discoveries and in the case of the Zermatt licence, it was after taking into account the higher ranked, drill-ready portfolio of exploration opportunities in Licence P2170 (Verbier),” said the company in a statement.
“With Glenn and Zermatt not featuring in our GBA Development plans, this licence determination does not impact our GBA farm-out process, which is ongoing.
“JOG has decided not to progress to the next licence phase, which would have required committing to a firm well in each of these two licence areas.
“Accordingly, the licences will automatically cease and determine at the end of Phase A of their initial term on 29 August 2021.”
“JOG’s management has taken the pragmatic and cost-effective decision not to proceed with firm well commitments for the non-core Glenn and Zermatt licences in the context of efficient and targeted capital allocation,” added chief executive Andrew Benitz.”
OGA
Before reaching the decision, JOG conducted comprehensive technical and economic evaluations of P2497 and P2499 and had meetings with the Oil and Gas Authority (OGA).
The company said that OGA had confirmed it was satisfied that the Phase A firm commitments for both licences had been fulfilled.