Jersey Oil & Gas plc (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 it has established and will lead the Greater Buchan Area Joint Integrated Studies Agreement (the "Agreement") between neighbouring field operators, to undertake and complete technical and commercial evaluation studies for a collaborative development of the wider Greater Buchan Area, which contains discovered oil and gas resources in excess of 200 million barrels of oil equivalent ("boe").
A key objective of the studies under the Agreement is to establish whether a collaborative development would lead to a reduction in development costs and an increase in value for all participants in a new production hub in the area, potentially including electrification in line with the Oil & Gas Authority's ("OGA") Maximising Economic Recovery ("MER") strategy for the UKCS and reducing CO2 emissions.
Fields, Discoveries and Participants Involved
· Buchan, J2 and Glenn - operated by Jersey Oil & Gas (100%);
· Verbier - operated by Equinor UK Limited (70%) (pending completion of the Company's acquisition announced on 27 January 2020) alongside its partners Jersey Petroleum Limited (18%) and CIECO Exploration and Production Limited (12%);
· Avalon - operated by Ping Petroleum UK Limited (50%) alongside its partner Summit Exploration and Production Limited (50%); and
· Leverett - operated by Zennor Resources (N.I.) Limited (100%).
A map of the licenses and operators who will form part of the study can be viewed here: https://www.jerseyoilandgas.com/wp-content/uploads/2020/03/jisa-map.png
Andrew Benitz, CEO of Jersey Oil and Gas, commented :
"We are delighted to be progressing this important study to evaluate the technical and commercial benefits of working together with neighbouring operators to potentially develop over 200 million boe of discovered oil and gas within the wider Greater Buchan Area."
Scott Robertson, Director of Operations at the OGA said :
"I am delighted with this collaboration agreement in the Greater Buchan Area, particularly given collaboration was a key component of the OGA's vision for the Greater Buchan Area through the 31st Supplementary Licensing Round award in 2019. Oil and gas will remain an important part of the UK's energy mix for the foreseeable future as we transition to net zero. The OGA is encouraged by the collaborative and energy efficient example Jersey Oil & Gas is setting."