TIDMJOG
RNS Number : 5422A
Jersey Oil and Gas PLC
27 March 2017
27 March 2017
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Increased resource estimates for the Verbier and Cortina
prospects on Licence P.2170, Blocks 20/5b & 21/1d and
Appointment of Joint Broker
Jersey Oil & Gas (AIM:JOG), 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").
Highlights
-- 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.
Verbier
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.
Cortina
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").
Table 1: Verbier Prospect - Prospective Resources and Contingent
Resources (P.2170)
Verbier (J64) Contingent Resources
ERCE (P2170) 1C 2C 3C
------------------------------------ ---- ---- ----
STOIIP (MMstb) 4.0 5.7 8.3
------------------------------------ ---- ---- ----
Recoverable Oil (MMstb) 1.0 1.8 3.3
------------------------------------ ---- ---- ----
Recoverable Gas (Bscf)* 0.5 1.0 1.9
------------------------------------ ---- ---- ----
Total Contingent Resources
(MMboe) 1.1 2.0 3.6
------------------------------------ ---- ---- ----
PG = 1.0
------------------------------------------------------
*Solution Gas
Verbier (J64) - Prospective Low Best High Mean
Resources ERCE (P2170)
---------------------------------- ---- ----- ----- -----
STOIIP (MMstb) 135 340 855 440
---------------------------------- ---- ----- ----- -----
Recoverable Oil (MMstb) 38 108 301 148
---------------------------------- ---- ----- ----- -----
Recoverable Gas (Bscf)* 20 58 168 82
---------------------------------- ---- ----- ----- -----
Total Prospect Resources (MMboe) 42 117 329 162
---------------------------------- ---- ----- ----- -----
Pg = 0.29
-------------------------------------------------------------
*Solution Gas
Note: boe, converted to oil using a conversion rate of one
barrel of oil for six thousand standard cubic feet of natural
gas
The Cortina prospect lies approximately 6 km due east of the
Verbier prospect. The trap is broadly similar to Verbier, but lies
at a greater depth. It consists of stratigraphic and dip-closure in
the east, north and west, with fault-seal required towards the
south. Like Verbier, the seismic image suggests a fan shaped
deposition. The STOIIP and the Prospective Resources for Cortina
are set out in Table 2, along with the Geological Chance of
Success.
Table 2: Cortina Prospect - Prospective Resources (P.2170)
Cortina (J64) - Prospective Low Best High Mean
Resources ERCE (P2170)
----------------------------- ---- ----- ----- -----
STOIIP (MMstb) 129 281 612 338
----------------------------- ---- ----- ----- -----
Recoverable Oil (MMstb) 36 89 219 114
----------------------------- ---- ----- ----- -----
Recoverable Gas (Bscf)* 19 48 123 63
----------------------------- ---- ----- ----- -----
Total Prospective Resources
(MMboe) 39 97 240 124
----------------------------- ---- ----- ----- -----
Pg = 0.19
--------------------------------------------------------
*Solution gas
Note: boe, converted to oil using a conversion rate of one
barrel of oil for six thousand standard cubic feet of natural
gas
Appointment of Joint Broker
JOG is also pleased to announce the appointment of BMO Capital
Markets as Joint Broker to the Company.
Enquiries:
Jersey Oil and Andrew Benitz, C/o Camarco:
Gas plc CEO Tel: 020 3757 4983
Strand Hanson Limited James Harris Tel: 020 7409 3494
Matthew Chandler
James Bellman
Arden Partners Chris Hardie Tel: 020 7614 5900
plc Benjamin Cryer
BMO Capital Markets Vicary Gibbs Tel: 020 7236 1010
Neil Haycock
Tom Rider
Camarco Billy Clegg Tel: 020 3757 4983
Georgia Edmonds
James Crothers
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014.
Qualified Person's Statement:
The information contained in this announcement has been reviewed
and approved by Ronald Lansdell, Chief Operating Officer of Jersey
Oil and Gas, qualified Geologist and Fellow of the Geological
Society, who has over 40 years' relevant experience within the
sector.
The estimates provided in this announcement are based on the
Petroleum Resources Management System ("PRMS") published by the
Society of Petroleum Engineers ("SPE") and are reported consistent
with the March 2007 SPE/WPC/AAPG/SPEE PRMS guidelines.
Glossary:
Bscf Billion standard cubic feet
Contingent Resources those quantities of petroleum
estimated, as of a given date,
to be potentially recoverable
from known accumulations by application
of development projects but which
are not currently considered
to be commercially recoverable
due to one of more contingencies.
Contingent resources are a class
of discovered recoverable resources;
Geological Chance the estimated chance, or probability,
of Success or of making an oil and gas discovery
Pg in an exploration well;
MMboe million barrels of oil equivalent;
MMstb million stock tank barrels of
oil
PRMS Petroleum Resources Management
System published by the Society
of Petroleum Engineers
Prospective Resources those quantities of petroleum
which are estimated, as of a
given date, to be potentially
recoverable from undiscovered
accumulations;
STOIIP stock tank oil-initially-in-place
This information is provided by RNS
The company news service from the London Stock Exchange
END
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