TIDMJOG
RNS Number : 8346M
Jersey Oil and Gas PLC
26 January 2021
26 January 2021
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Significant uplift in Buchan oil field contingent resource
estimates
Contingent resource estimates at Buchan increased to 126
MMstb
and GBA core to 162 MMstb
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 a significant increase in 2C
contingent resource estimate for the Buchan oil field, within the
Greater Buchan Area ("GBA").
Dynamic reservoir modelling of the P50 stock tank oil initially
in place ("STOIIP") case has recently been completed by
Schlumberger Oilfield UK Plc ("Schlumberger"), using their
proprietary INTERSECT* high resolution reservoir simulator. Such
new and comprehensive dynamic models provide a robust forecast for
the P50 case for the Buchan oil field, having fully incorporated
all available subsurface information and successfully history
matched 36 years of production data. This project workstream has
now been independently peer reviewed as part of a wider scope
reviewing the development concept by Vysus Group (formerly Lloyds
Register's Energy Business), a global engineering and technical
consultancy.
* Mark of Schlumberger
Subsurface Highlights :
- Dynamic reservoir modelling has determined that the P50
estimate of the technically recoverable resources for the Buchan
oil field is 126 million stock tank barrels ("MMstb"), representing
an increase of over 50% on previous estimates derived from decline
curve analysis
o The new dynamic model used inputs from the high resolution
2018 PGS 3D seismic survey data, together with the static and
dynamic well data and field production history
o The Buchan sandstone reservoir is a well-connected, dual
porosity and permeability system
o Buchan oil quality is light sweet crude at 33.5deg API
o The expected ultimate recovery factor is 54% of original oil
in place, with historic field production having recovered 29% of
the P50 STOIIP estimate
o Planned future production will be achieved using optimally
located deviated wells placed high in the structure with water
injection
Buchan oil field estimates :
Buchan Contingent Resource Estimates
P90 P50 P10
------------------- ------------------- -------------------
STOIIP (MMstb) 426 507 615
------------------- ------------------- -------------------
Remaining Technically
Recoverable Resource
Volumes (MMstb) 72 126 184
------------------- ------------------- -------------------
Historic Production
(MMstb) 148 148 148
------------------- ------------------- -------------------
Total Recovery
Factor 52% 54% 54%
------------------- ------------------- -------------------
Development Plan 4 Producers 5 Producers 8 Producers
- Well Count 2 Water Injectors 2 Water Injectors 4 Water Injectors
------------------- ------------------- -------------------
GBA development project update :
- As a result of this increase, the GBA core volume, including
the Buchan oil field and volumes from the J2 and Verbier oil
discoveries, is now forecast to have 2C contingent resources of 162
MMstb or 172 million barrels of oil equivalent ("MMboe") including
associated gas
- Preliminary economics for the GBA core development, which
includes Buchan, J2 and Verbier are very encouraging - higher
volumes serve to reduce unit costs and drive economic
efficiencies
- Having selected our preferred development concept for the GBA
hub development, management is now finalising the Concept Select
report and economics for submission to the OGA ("Oil and Gas
Authority") with the aim of commencing FEED in Q3 2021
- The Company continues to advance its technical and economic
evaluation work in respect of electrifying the GBA in order to make
it a low carbon emissions project
- Today's increase in volumes comes ahead of the anticipated
launch of the Company's GBA farm-out process later this quarter
seeking to attract industry partnership to join JOG in unlocking
the significant value that exists within this very exciting major
North Sea area hub development project
The updated Buchan subsurface evaluation presentation is
available to download on the Company's website at:
www.jerseyoilandgas.com/investors/presentations/
Andrew Benitz, CEO of JOG, commented :
"I am delighted with the results of dynamic modelling which
result in an increase in the estimated contingent resource volumes
of light sweet crude in the proven, conventional reservoir at
Buchan by over 50%. These compelling results demonstrate the
substantial inherent value of the Buchan field and the wider GBA
development.
"We recognised the potential of Buchan at an early stage and
have maintained our strategic focus on this area in the heart of
the Central North Sea with the benefit of aggregation of high value
assets becoming self-evident. The GBA development project presents
a very compelling investment case that we believe will have wide
industry appeal. We look forward to formally engaging with industry
in due course and attracting the right industry partnership aligned
and committed to the GBA's future success."
Qualified Person's Statement
The information contained in this announcement has been reviewed
and approved by Ronald Lansdell, Chief Operating Officer of Jersey
Oil & Gas, a qualified Geologist and Fellow of the Geological
Society, who has over 40 years' relevant experience within the
sector.
Enquiries :
Jersey Oil and Gas plc Andrew Benitz, CEO C/o Camarco:
Tel: 020 3757 4983
Strand Hanson Limited James Harris Tel: 020 7409 3494
Matthew Chandler
James Bellman
Arden Partners plc Paul Shackleton Tel: 020 7614 5900
Benjamin Cryer
BMO Capital Markets Limited Jeremy Low Tel: 020 7236 1010
Tom Rider
Camarco Billy Clegg Tel: 020 3757 4983
James Crothers
Notes to Editors :
Jersey Oil & Gas is a UK E&P company focused on building
an upstream oil and gas business in the North Sea. The Company
holds a significant acreage position within the Central North Sea
referred to as the Greater Buchan Area ("GBA"), which includes
operatorship and 100% working interests in blocks that contain the
Buchan oil field and J2 and Glenn oil discoveries and an 100%
working interest in the P2170 Licence Blocks 20/5b & 21/1d
(subject to OGA approval of the acquisition of CIECO V&C UK
Limited as announced on 26 November 2020), that contain the Verbier
oil discovery and other exploration prospects.
JOG's total GBA acreage is estimated by management to contain
more than 180 million barrels of oil equivalent ("mmboe") of
discovered P50 recoverable resources net to JOG, in addition to
significant exploration upside potential of more than 220 mmboe of
prospective resources in close proximity to our planned Buchan
platform. JOG is currently progressing the Concept Select phase of
an FDP for the Greater Buchan Area.
JOG is focused on delivering shareholder value and growth
through creative deal-making, operational success and licensing
rounds. Its management is convinced that opportunity exists within
the UK North Sea to deliver on this strategy and the Company has a
solid track-record of tangible success.
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.
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END
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