North Sea-focused Jersey Oil & Gas has formally launched the farm-out process of the Greater Buchan Area in the UK North Sea and started talks to raise funds to progress work on the project.
Jersey said on Thursday that it was responding to media speculation regarding the company potentially undertaking equity fundraising.
The company did confirm that it was in discussions regarding fundraising of between $14 to $21 million but added that there was no certainty that any funds would be raised.
“ The net proceeds of such a potential fundraise would be utilised to maintain momentum for the next phase of workstreams on the project and augment the company’s existing cash reserves during farm-out discussions ”, Jersey said.
Last week, Jersey revealed the preferred development concept for the Greater Buchan Area development with Phase 1 being a single integrated wellhead, production, utilities, and quarters (WPUQ) platform located at the Buchan field.
The company stated at the time that it would launch a farm-out process ahead of the final investment decision expected in 2022. In Thursday’s statement Jersey confirmed that the planned farm-out process has now been formally launched.
The development concept for the GBA includes drilling of the Buchan wells using a heavy-duty jack-up located over a 12 slot well bay.
Phase 1 facilities will be designed to accommodate Phase 2 and Phase 3 of the development. Phase 2 will develop the J2 West, J2 East, and Verbier East discoveries via a subsea tie-back to the GBA platform. Phase 3 will develop the Verbier West discovery via connection to the Phase 2 subsea infrastructure. Field life is anticipated to be 31 years.
Jersey is looking to produce first oil from the first phase in the fourth quarter of 2025. The second phase startup would be in 2027, and Phase 3 in 2028. The facilities will be powered from shore.
The Greater Buchan Area development project contains an aggregate of 172 million barrels of oil equivalent (mmboe) 2C contingent resource estimates of light sweet crude and associated gas.