Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf (“UKCS”) region of the North Sea, is pleased to announce its audited results for the year ended 31 December 2017.
Highlights
- Oil Discovery at Verbier sidetrack well 20/05b-13Z, with estimated gross recoverable resources of up to 130 million barrels of oil equivalent, with a minimum proven volume of 25 million barrels of oil equivalent
- Placing with new and existing institutional investors and open offer completed in November 2017 raising £23.8m (gross) to significantly strengthen the Company’s balance sheet
- The Company benefitted from a double carry on the exploration programme, with Operator Statoil carrying well costs of up to $25 million on the 20/05b-13 well and JOG receiving a 10% cash carry from its co-venturer CIECO of approximately £2.4m
- Cash balances at year end of £25.4m and no debt
Post year end
- 2018 work programme and budget approved for P2170 licence which includes an appraisal well programme for the recent Verbier oil discovery
- Contracts awarded by P2170 Licence Operator, Statoil, for the semi-submersible rig, West Phoenix, to drill an appraisal well, with the possibility for a sidetrack well, on the Verbier oil discovery in P2170 licence in the summer of 2018
- The P2170 licence co-venturers have committed to pre-fund a 3D seismic survey over the P2170 licence area and certain offset acreage, during Q2 2018 with delivery of final data expected in Q1 2019
Outlook
- Global oil prices appear to be holding steady above the $60/bbl level, providing increased clarity for pursuit of the Group’s growth strategy
- Exciting year ahead with near-term drilling activity on Verbier in the summer of 2018
- Additional 3D seismic survey will facilitate the potential future development of the Verbier discovery and enhance our understanding and evaluation of other drillable prospects in the greater P2170 licence area
- Ongoing licence-wide exploration effort looking for other Verbier analogues, including Cortina and Meribel
- Contingent plans for site survey and additional exploration well planning
- The Company continues to pursue its dual strategy of appraising and exploring P2170, while seeking to acquire oil and gas production assets in the UK Continental Shelf (“UKCS”) region of the North Sea
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
“2017 has been a significant and exciting year for Jersey Oil and Gas and has been the culmination of years of hard work by the Company. Our exploration drilling programme on our highly exciting Verbier prospect in October delivered a stand out discovery in the North Sea which we look forward to appraising this summer. Our successful fundraising in October has meant that the Company is well funded for the upcoming work programme on the P2170 licence.”
“The board and I look forward to 2018 from a position of optimism and would like to thank shareholders for their ongoing support and look forward to updating them on further progress.”
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