Jersey Oil & Gas plc (JOG) has received regulatory approval for an 18-month extension until 28 February 2025 to the second term of its P2498 Buchan licence in the central North Sea.
FARM-OUT
The North Sea Transition Authority (NSTA) also granted permission for the company to assign a 50% working interest in the licence and P2170 (Verbier) to NEO Energy, as part of the recently announced Greater Buchan area farm-out transaction.
JOG said that the extension to P2498 would provide the licensees time to prepare a field development plan (FDP) to submit to the NSTA during 2024.
Following FDP approval the licence moves into the third term, which covers the development and production phase of activities for the life of the field.
CONDITIONS PRECEDENT
JOG has now satisfied the conditions precedent for the farm-out of the 50% interest in P2498 to NEO, and is currently completing the final outstanding condition precedent for P2170.
The company added it expected to complete assignment of both licences during June 2023.