Jersey planning for North Sea drilling campaign in 2022

Jersey Oil & Gas has identified a new prospect in the UK North Sea, near its existing infrastructure, following a comprehensive subsurface evaluation of all its licences with plans to carry out a drilling campaign from 2022.

Jersey said on Monday that the comprehensive subsurface evaluation has validated its existing prospectivity and has identified a significant new prospect named Wengen, located on Licence P2170, directly west of the producing Tweedsmuir field.

Four of the prospects have been matured to drill-ready status: Verbier Deep, Cortina NE (J64), Wengen (P2170) and Zermatt (P2497) with aggregate P50 prospective resources of 222 MMboe (including upside potential to Cortina NE (J64) that, in the success case, could be tested by an initial exploration well and a side-track well).

Individual probabilities of geological success (Pg) range from 16 to 30 per cent, according to Jersey.

Subject to funding, a drilling campaign is planned from 2022. In the success case, it is envisaged that development would be made via short distance, subsea tiebacks to the planned Greater Buchan Area (GBA) facility.

The geological and geophysical evaluation undertaken by the company has been peer-reviewed by Rockflow Resources (P2170) and Xodus Group (P2497), and the subsequent reservoir engineering and commercial evaluation has been undertaken jointly by the company and Xodus Group.

The prospects are individually economically robust with, in each case, the estimated P90 economically recoverable volumes exceeding the required minimum economic field size, to be developed as subsea tiebacks to JOG’s planned GBA hub development.

Jersey also noted that the Oil & Gas Authority has acknowledged an application for the discretionary surrender of part of the licensed area of Licence P2170. As such, with effect from 30 November 2020, the licensed area as defined at Schedule 1 to the Licence will be replaced by the new licence area.

The retained licensed area includes the four drill-ready prospects identified and affords a significant saving in respect of annual licence rental payments.

Andrew Benitz, CEO of Jersey Oil & Gas, commented: “These highly attractive, drill-ready exploration prospects are in the immediate vicinity of our planned GBA production facility and, as a result, a discovery at any one of these prospects would have the potential to extend the GBA production plateau and further enhance shareholder value.

“We look forward to progressing a drilling campaign post a successful conclusion to our upcoming GBA sales process”.

Jersey in November entered into a conditional sale and purchase agreement to acquire the entire issued share capital of CIECO V&C, which will give it full ownership of a North Sea licence located within its Greater Buchan Area project.

The acquisition secures Jersey an additional 12 per cent working interest in Licence P2170 Blocks 20/5b & 21/1d.

As a result, the acquisition is providing Jersey with 100 per cent ownership and full control of Licence P2170.