Jersey Oil & Gas PLC - Interim Results for the Six Months Ended 30 Jun 19
Interim Results for the Six Months Ended
· Strong cash position of approximately
· Drilled the 20/05b-14 Verbier appraisal well which, although failing to encounter Upper Jurassic sands, provided the P2170 JV partners with valuable well data
· Received the final instalment of the processed data from the 2018 PGS 3D seismic survey, which will be incorporated with data from the 20/05b-14 Verbier appraisal well to provide a Verbier licence full re-evaluation
Post Period End:
· Transformational licence awards in the
· Awards add an estimated 119 million barrels of discovered mean recoverable resources net to JOG
· Three month 50% option granted to Equinor for Blocks 20/5d and 21/1a (the "
· Field Development Planning ("FDP") work underway on the Greater
· Adopting key Environment, Social and Governance principles to ensure that we develop our resources in a sustainable, low carbon and responsible manner
· Hiring key project team members to enhance our technical and project management capabilities
· Appointing key contractors to undertake Appraise and Select phases of the FDP work
· Commissioned a new independent Competent Person's Report ("CPR") for the Buchan Blocks, which contain the Buchan Field and J2 discovery
· Progressing full subsurface re-interpretation / validation of licence P2170 using the new final processed data from the 2018 PGS 3D seismic survey
· Undertaking independent work in respect of licence P2170 to support potential future drilling activity
· Potential production acquisition opportunities continue to be pursued
"The first half of 2019 has been transformational for JOG, we have begun work on a full re-evaluation of the P2170 licence area and after significant effort and investment JOG was awarded 100% working interest and operatorship of four blocks in the Greater
The Greater Buchan area is a very material and scalable project, which has the clear potential to deliver significant shareholder value beyond what we have already achieved. We are dealing with well-known, good quality, light oil fields and discoveries in a relatively benign and shallow part of the
The board and I look forward to develop this vital resource sustainably and would like to thank shareholders for their ongoing support and look forward to updating them on further progress."
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Tel: 020 3757 4983
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Tel: 020 7409 3494
Arden Partners plc
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Tel: 020 7614 5900
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Tel: 020 7236 1010
Tel: 020 3757 4983
Notes to Editors:
The Company plans to build an upstream E&P portfolio via both organic development and acquisitions coinciding with the cyclical recovery in the oil price and the opportune buying market in the
The first six months of 2019 was a busy period for
This was against a backdrop of the Brent Crude oil price starting 2019 at approximately
Verbier and the
To our great disappointment, the Verbier appraisal well did not encounter the anticipated Upper Jurassic sands. Nonetheless, we remain committed to the P2170 Licence area, particularly in the context of: a) the operator's estimate of 25m barrels of discovered contingent resources at Verbier; b) potential additional resources in the area located to the north west of the earlier Verbier discovery (the 20/05b-14 well) which remain untested; c) the further untested resource potential in a deeper horizon beneath the Verbier discovery; and d) the Cortina prospect.
During the first half of 2019, we also continued to work very hard on our application for acreage on offer under the 31 SLR, which included the Buchan oil field and the J2 oil discovery (well 20/5a-10Y), both of which are located in areas contiguous to P2170 in the
The 31 SLR awards represent a huge opportunity for JOG, bringing us operatorship of most of the key discovered oil fields within the Greater Buchan Area, whilst additionally enhancing the potential development of the Verbier discovery, as part of an overall area development project.
Further details of the 31 SLR awards are contained in the Chief Executive Officer's Report. As Chairman, I would like to take this opportunity to acknowledge the huge amount of effort that has been put into achieving these licence awards by the entire JOG team, which is the culmination of preparatory work that has been ongoing for much of the last two years.
The Company's total cash reserves at
Going forward, we now have a much enlarged portfolio of assets, which we expect will continue to grow in the future, each with interdependent funding considerations.
Following the recent 31 SLR awards, we have started to work on the development project for the Greater Buchan Area with vigour and look forward to delivering significant shareholder value as this workstream progresses.
CHIEF EXECUTIVE OFFICER'S REPORT
During the first half of 2019, the Verbier appraisal well was drilled, in which JOG holds an 18% non-operated working interest. Unfortunately, after the success of the initial exploration discovery in late 2017, this initial appraisal well did not encounter the anticipated Upper Jurassic reservoir sands. Whilst this was a temporary setback for the Company, it is important to note that such an outcome does not factor in elements of additional resource potential within the P2170 licence area which include an area to the north west of Verbier, a deeper objective beneath the Verbier discovery and the Cortina prospect to the east of Verbier. Together with our co-venturers,
The Verbier appraisal well programme was part of a larger Equinor-operated drilling campaign which began in
The Greater Buchan Area - A transformational event for
The Buchan oil field was discovered in the mid-1970s and was brought onstream by BP in 1981 with nine development wells with initial production peaking at 54,537 barrels of oil per day ("bopd"). 148 million barrels ("mmbbls") of oil were produced under natural depletion with aquifer support through to
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