KEYFACT Energy
Highlights:
- JOG awarded, subject to documentation, 100% working interest and operatorship of an additional block (Block 21/2a) in the Oil & Gas Authority's ("OGA") 31st Supplementary Offshore Licensing Round
- Additional Greater Buchan Area ("GBA") acreage in Block 21/2a includes the Glenn oil discovery and adds a further 14 million barrels of oil equivalent ("mmboe") discovered mean recoverable resources
Jersey Oil & Gas has been awarded 100% working interest and operatorship of Block 21/2a in the OGA's 31st Supplementary Offshore Licensing Round. The additional acreage awarded to JOG, subject to documentation, includes the Glenn oil discovery.
The licence in respect of Block 21/2a comprises a two-year Initial Term with certain firm work obligations, principally comprising geotechnical studies, with a drill or drop well obligation at the end of the term.
The acreage is contiguous with the previously announced 31st Supplementary Offshore Licensing Round awards both in the Greater Buchan Area ("GBA") containing the Buchan and J2 discoveries and the Capri, Chamonix, Courchevel and Zermatt prospects and the Licence P2170 (Blocks 20/5b and 21/1d) acreage that contains the Verbier oil discovery, in which JOG holds an 18% working interest alongside operator, Equinor UK Limited ("Equinor") (70%), and CIECO V&C (UK) Limited (12%).
Together with its interest in the Verbier discovery and previous GBA acreage awards, the addition of Block 21/2a to its portfolio provides the Company a significant opportunity to operate a major new area development of in excess of 120 million barrels of oil equivalent ("mmboe") of discovered mean recoverable resources net to JOG.
JOG has already commenced work on a Field Development Plan ("FDP") seeking to deliver a JOG-operated area hub development in line with the OGA's Maximising Economic Recovery of UK petroleum ("MER UK") strategy. JOG is fully funded to an FDP. This area hub will be planned to incorporate the redevelopment of the Buchan oil field, together with the development of the J2 oil discovery and potentially the Glenn and Verbier oil discoveries as well as other discovered and yet-to-be-found resources in the GBA. First oil, subject to funding, is targeted for 2024. JOG will evaluate and determine the optimal sustainable development plan, designed to deliver phased and extended plateau production.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are delighted to announce this further licence award within the Greater Buchan Area. This additional acreage completes a 100 per cent success rate of awards across all of the acreage we applied for in the 31st Supplementary Offshore Licensing Round. The Glenn oil discovery contained therein adds additional discovered resources net to JOG as well as operatorship of another discovered resource in the area of our Buchan-centred development hub plans for the GBA."