Jersey Oil & Gas has completed its acquisition of the entire issued share capital of CIECO V&C (UK) Limited ("CIECO V&C"), owned by ITOCHU Corporation and Japan Oil, Gas and Metals National Corporation ("JOGMEC"). The consideration for the acquisition consists of a completion payment of £150,000 and two contingent payments based on the UK's Oil & Gas Authority's consent for a Field Development Plan and the potential future development and production of oil volumes from the Verbier discovery in the Upper Jurassic (J62-J64) Burns Sandstone reservoir located on Licence P2170 (Blocks 20/5b and 21/1d) ("Licence P2170").
The Acquisition provides JOG with an opportunity to create significant value through potentially developing the Verbier discovery as part of its planned Greater Buchan Area ("GBA") hub. Licence P2170 also benefits from multiple material exploration prospects that have high value potential through tie-backs to the proposed new GBA hub.
In addition, the Company also announces that finnCap Ltd has been appointed as its Joint Broker with immediate effect.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"I am pleased to announce the completion of our acquisition of CIECO V&C, which adds the final component part of the GBA to our existing portfolio. This is an important acquisition for our recently launched farm-out process in respect of our GBA development project and increases JOG's discovered resources, adds material value and exploration upside in addition to useful tax losses that accompany the corporate acquisition."
KeyFacts Energy: Jersey Oil and Gas UK country profile