Jersey Oil & Gas expects North Sea rig to start drilling in summer

Maryam Cockar Sharecast | 17 Feb, 2017 10:31 - Updated: 10:31 | | |

North Sea rig
  • 267.00
  • -3.78%-10.50
  • Max: 277.50
  • Min: 266.50
  • Volume: 20,689
  • MM 200 : n/a
17:20 24/07/17
  • 7,495.85
  • -1.17%-88.85
  • Max: 7,584.70
  • Min: 7,458.11
  • Volume: 0
  • MM 200 : n/a
17:21 24/07/17
  • 969.57
  • -0.01%-0.13
  • Max: 971.58
  • Min: 968.40
  • Volume: 0
  • MM 200 : n/a
17:30 24/07/17

AIM-listed Jersey Oil & Gas expects that its rig in the North Sea will start drilling a well in the summer.

The explorer said that Statoil, the operator of licence P2170 in which the company holds an 18% stake in, is currently undertaking a tender process for a drilling rig and is expected to be awarded in the near future, in respect of the planned exploration well to be drilled on the Verbier prospect this summer.

Jersey is also benefitting from the 10% carried interest arrangement with its other co-venturer CIECO Exploration and Production for the reimbursement of related costs for the well programme.Statoil is funding all costs up to $25m for the drilling of the first exploration well on the licence.

In the company's other licence, P1989, its partner Azinor Catalyst will drill an exploration well in the Partridge prospect later this year, and if a discovery is made that satisfies certain technical criteria, a $2m payment would be paid to the company from Azinor. If that discovery also results in an approval of a formal field development plan, a further $2m will be paid.

Jersey also said that it is involved in several potential sales of licences in the North Sea and is confident that its experience and knowledge will enable oty to deliver shareholder value from pending acquisitions.

Chief executive Andrew Benitz said: "We are pleased to report the continued progress being made by Statoil in preparation for drilling the Verbier prospect this summer, as well as our ongoing additional technical evaluation of the prospect.

“Our team also remains actively involved in multiple sales processes targeting possible production acquisitions in line with our stated strategy."

Shares in Jersey Oil & Gas were up 4.63% to 203.50p at 1006 GMT.

More news

19:02 UK to invest £246m in research and development into energy storage

On Monday, redT energy reported a £246m investment from the Department of Business, Energy and Industrial Strategy (BEIS) to aid in energy storage in the UK.

18:16 FTSE 250 movers: Miners Acacia and Petra dig midcaps deeper

The FTSE 250 fell on Monday, though not as much as its larger sibling, with two miners leading the retreat.

17:55 London close: FTSE ends in the red as airlines hit by Ryanair Brexit warning

London stocks ended in the red on Monday, with airlines under the cosh as Ryanair warned over the potential fallout from Brexit.

17:39 Europe close: Stocks end mostly lower as autos skid

European stocks ended mostly lower on Monday, with autos under the cosh as investors digested the latest data on the eurozone manufacturing and services sectors.

17:03 Tuesday preview: Provident Financial in focus, though Victrex could surprise

Tuesday will see the number of companies reporting step up before the throttle is turned right up later in the week, with Croda International, Informa and Segro joined by sub-prime lender Provident Financial following its recent profit warning.

17:49 Acacia Mining hit with USD190bn tax bill from Tanzanian government

Acacia Mining has been sent a tax bill from the Tanzanian authorities totalling around $190bn for unpaid tax and penalties from its Bulyanhulu and Buzwagi mines in the country, which the London-listed company disputes.

15:55 Tesco to launch same day grocery delivery service across UK

Tesco announced on Monday that it will be launching its same day online grocery delivery service across the entire UK from next month.

15:43 US open: Stocks mostly lower as investors eye Alphabet earnings

US stocks were trading mostly lower on Monday as investors awaited corporate news from the likes of Alphabet ahead of what promises to be a busy week on the earnings front.

15:36 FTSE 100 movers: Burberry in fashion as Frere lifts stake; easyjet descends

Burberry shares spiked on Monday afternoon after billionaire Albert Frere lifted his stake in the high-end fashion retailer to 4% from 3%.

15:23 US existing home sales drop more than expected in June

Sales of US existing homes fell more than expected in June, according to data from the National Association of Realtors.