JOG set to strengthen grip on North Sea Buchan area

Jersey Oil & Gas has a conditional agreement to acquire North Sea E&P company CIECO V&C (UK), currently owned by Japan’s ITOCHU Corporation and JOGMEC.

Assuming approval for the transaction, JOG would secure a further 12% interest in licence P2170 blocks 20/5b and 21/1d in the UK central North Sea, giving it 100% ownership.

The licence is within the company’s Greater Buchan Area (GBA) and includes the majority of the Verbier oil discovery.

Other drill-ready prospects are Verbier Deep, Wengen, and Cortina.

JOG will pay £1.5 million (US$2 million) in cash following consent from the UK’s Oil & Gas Authority for a development plan for Verbier in the Upper Jurassic (J62-J64) Burns sandstone reservoir, and a further £1 million (US$1.34 million) not later than one year after first oil from all or any part of the area covered by the plan.

CEO Andrew Benitz said: “The corporate acquisition of CIECO V&C completes 100% ownership of the final component of our GBA project that was not previously wholly owned by JOG and positions us perfectly ahead of completion of concept select and the planned launch of JOG’s wider GBA sales process.”

Source: Offshore Magazine