8th Oct 2019 10:59
(Alliance News) - Jersey Oil & Gas Ltd said Tuesday that Rockflow Resources Ltd has published its Competent Persons Report for assets within the Greater Buchan Area in the North Sea.
Jersey also said that Equinor UK Ltd, the company's farm-in partner for blocks 20/5a and 21/1a, has decided not to exercise the three month option granted over a 50% equity interest on the blocks.
Jersey and Equinor agreed to the option in July, when the former was awarded the three blocks in a UK offshore licensing round.
Looking ahead, Equinor will focus on maturing and assessing the opportunities in the adjacent Verbier licence, while Jersey retains full ownership over the two blocks, and has started concept appraisal and selection phase activities for the Greater Buchan Area development.
Shares in Jersey Oil & Gas were 11% lower at 201.00 pence on Tuesday in London.
The CPR published by Rockflow is for licence P2498, which includes the Buchan Devionian oil field, Buchan Andrew oil discovery and the J2 Sgiath oil discovery.
Collectively, the technically recoverable oil resource volumes comes to around 94.7 million stock tank barrels.
In a mid oil price scenario of USD62.50 per barrel, the post-tax net present value of P2498 would be GBP757 million net to Jersey.
For both licence P2498, and Jersey's 18% stake in the Verbier discovery, the post-tax net present value net to Jersey would be around GBP791 million.
"This independent valuation supports the significant value proposition for developing the base case discovered volumes that Jersey owns within its core Greater Buchan Area assets," said Chief Executive Officer Andrew Benitz.
By Dayo Laniyan; [email protected]
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