LONDON: Jersey Oil & Gas plc, an independent upstream oil and gas company focused on the UK Continental Shelfregion of the North Sea, has entered into a conditional Sale and Purchase Agreement (SPA) to acquire operatorship of, and an additional 70% working interest in, Licence P2170 from Equinor UK Limited.
The consideration for the Acquisition consists of two milestone payments and a royalty based on potential future oil volumes produced from the Verbier Upper Jurassic (J62-J64) reservoir oil discovery.
Contingent payments of US$3 million upon sanctioning by the UK’s Oil & Gas Authority (OGA) of a Field Development Plan (FDP) in respect of the Verbier Field; and US$5 million upon first oil from the Verbier Field.
Certain royalty payments on the first 35 million barrels of oil produced from the Verbier Field calculated on the basis of a 70% working interest for on-block volumes.
Andrew Benitz, CEO of JOG, commented: “Acquiring further discovered oil volumes enhances JOG’s project value considerably and at the same time strengthens our plan to bring Verbier into future production through the GBA development, which is a truly exciting opportunity to showcase what is possible with new developments in the UKCS. We are working closely with the OGA and leading contractors to introduce technologies to enable the GBA development to be at the forefront of the energy transition as well as being a new area hub that encourages regional industry collaboration to maximise the economic recovery of resources in this prolific part of the Central North Sea.”
“We are now well placed to progress our development plans through Concept Select, before launching a farm-out process to attract industry partners to join us in unlocking the significant value that exists within the Greater Buchan Area.”