Jersey Oil & Gas, an independent upstream oil and gas company ?focused on the UK Continental Shelf (UKCS) region of the North Sea, is pleased to announce that an independent assessment of resource estimates in relation to UK Seaward Licence P.2170, Blocks 20/5b & 21/1d, in which the Company holds an 18 per cent. interest, and the associated prospects (Verbier and Cortina), has been completed by ERC Equipoise Ltd (ERCE).
· Mean Prospective Resources attributed to Licence P.2170 for the Verbier prospect increased to 162 Million barrels of oil equivalent (MMboe) from 118 MMboe and the chance of success increased to 29% from 26%
· Contingent Resources relating to discovery well 20/5a-10Y identified
· Mean Prospective Resources for the Cortina prospect increased to 124 MMboe from 91 MMboe with a chance of success of 19%
· Drilling of the Verbier exploration well by Statoil, Operator, planned for Summer 2017
· BMO Capital Markets appointed as Joint Broker
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are very pleased to provide the key findings of the independent Competent Person's Report which indicate a significant uplift in Prospective Resources for the Verbier prospect on licence P.2170, compared to the previously announced unaudited management estimates, together with a modest increase in the chance of success for this prospect. This follows further independent technical work conducted by JOG on the Verbier prospect and we are grateful for the support received from our shareholders including at the placing in November 2016 that has enabled us to further these important studies ahead of the planned upcoming exploration well.
"We are also pleased to bring BMO Capital Markets on board as joint broker and look forward to working with them as we pursue the Company's growth objectives."
UK Seaward Licence P.2170, Blocks 20/5b & 21/1d (P.2170) - Competent Person's Report
JOG commissioned ERCE, as a competent person, to review the Company's latest geological, geophysical and petrophysical interpretations of the P.2170 licence area and the named prospects, Verbier and Cortina. ERCE has now completed this work and made independent estimates of Prospective Resources, Contingent Resources and the Geological Chance of Success (Pg) for the prospects.
ERCE estimates gross mean Prospective Resources attributable to P.2170 to be 162 MMboe, with a Pg of 29%., compared with the unaudited mean Prospective Resources of 118 MMboe and Pg of 26%. previously estimated and disclosed by JOG. In addition, ERCE estimates gross 2C Contingent Resources attributable to P.2170 of 2.0 MMboe associated with the 20/5a-10Y well.
ERCE estimates mean Prospective Resources attributable to P.2170 for the Cortina prospect to be 124 MMboe with a Pg of 19% compared to the unaudited mean Prospective Resources of 91 MMboe previously estimated and disclosed by JOG.
Competent Person's Report - Executive Summary
ERCE has completed an audit of Prospective Resources, including estimates of Geological Chance of Success (Pg), attributable to the Verbier and Cortina prospects. Statoil (U.K.) Limited (Statoil) operates the licence with a 70% working interest. CIECO Exploration and Production (UK) Ltd hold a 12% working interest and Jersey Oil and Gas the remaining 18%.
The Verbier prospect is located along the northern flank of the Buchan High. Well 20/5a-10Y, drilled by Talisman in 2006, penetrated 46ft (14m) of oil-bearing Upper Jurassic sandstone within the Kimmeridge Clay Formation, the "J64 Sands". This well lies along strike from the planned 2017 Verbier exploration well.
An exploration well is planned for this summer to test the Verbier prospect.
Competent Person's Resource Estimates
ERCE reports a range of Contingent Resources related to discovery Well 20/5a-10Y. ERCE assigns Prospective Resources to the trap, which will be tested by the planned exploration well. The stock tank oil initially in place (STOIIP) and Prospective Resources for Verbier in P.2170 are set out in Table 1, along with the Geological Chance of Success (Pg).