Statoil faces disappointment at Verbier
Monday, Sep 11, 2017
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company ‎focused on the UK Continental Shelf ("UKCS") region of the North Sea, announces that the Statoil operated 20/05b-13 exploration well drilled on the P.2170 licence Blocks, 20/05b & 21/1d to test the Verbier prospect (in which the Company owns an 18 per cent. interest) has been safely drilled, reaching the planned target Total Depth of 4,267m on 10 September 2017. The well encountered water bearing Upper Jurassic sands, deeper than anticipated. A decision on whether to drill a sidetrack will be taken after evaluation of wireline logs, although at this stage JOG considers this to be unlikely. In the event a sidetrack is not drilled, the well will be plugged and abandoned.

This well was drilled with ultimately no cost exposure to JOG. The Board estimates that the Company's cash position at the end of 30 September 2017, taking into account both existing cash reserves and funds due from the Company's carry arrangements in respect of the Verbier well, will be approximately £2.5m.

In addition, the Company notes the announcement by Azinor Catalyst Limited ("Azinor") on 8 September 2017 relating to its 14/11a-2 well on the Partridge Prospect in which JOG had a contingent financial interest, as announced by the Company on 5 January 2016. While that well encountered excellent quality reservoir rocks, hydrocarbons were not present and it has now been plugged and abandoned. Accordingly no contingent payments will be received by the Company from Azinor.

Andrew Benitz, CEO of Jersey Oil & Gas, commented:

"We are naturally disappointed by these results, but remain in a strong position to continue to pursue our core strategy of growth through potential production asset acquisitions.

"In light of the Verbier result, the Company will now update its evaluation of the P.2170 licence acreage and consider the possible implications for the Cortina prospect, which remains an independent and prospective Upper Jurassic target."

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