Jersey Oil and Gas : Operational Update

Operational Update

Released : 29/01/2018

RNS Number : 1339D Jersey Oil and Gas PLC 29 January 2018

29 January 2018

Jersey Oil and Gas plc

("Jersey Oil & Gas", "JOG" or the "Company")

Operational Update

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 the co-venturers in respect of UKCS Licence P.2170 (Blocks 20/5b & 21/1d) ("P.2170"), which contains the Verbier oil discovery and the Cortina prospect, have approved a work programme and budget for 2018. The approved work programme and budget includes an appraisal of the recent Verbier oil discovery and contingent well planning including the acquisition of a site survey to progress exploration activity on the licence area.

Negotiations are advanced with respect to contracting a rig for the Verbier appraisal well programme, which plans for one well and an option for a sidetrack well, to be drilled in summer 2018.

The Company's share of the work programme will be funded from its existing cash reserves. Further to the successful fundraising completed in November 2017, cash balances are estimated to be approximately £25 million as of 31 December 2017. Capex for 2018 is estimated to be £9 million to £11 million for the Company.

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

"We are pleased with the progress being made on the post-discovery technical work being undertaken by the P.2170 joint venture partnership and that plans to appraise the Verbier oil discovery have been confirmed. As noted previously, initial Operator estimates of gross recoverable resources associated with the Verbier discovery are between 25 and 130 million barrels of oil equivalent ("mmboe") with an estimated mean of 69mmboe.

"We look forward to updating our shareholders in due course as drilling plans and further exploration activity progresses."

Enquiries:

Jersey Oil and Gas plc

Andrew Benitz, CEOC/o Camarco:

Tel: [phone]

Strand Hanson Limited

James Harris Matthew Chandler James BellmanTel: [phone]

Arden Partners plc

Chris Hardie Benjamin CryerTel: [phone]

BMO Capital Markets Limited

Neil Haycock Tom RiderTel: [phone]

Camarco

Billy Clegg James CrothersTel: [phone]

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.

Notes to Editors:

Jersey Oil & Gas is a UK E&P Company focused on building a production focused company in the North Sea. The Company owns an 18% interest in the P.2170 licence, Blocks 20/5b & 21/1d, Inner Moray Firth, in which the operator, Statoil (U.K.) Limited, owns a 70% interest and CIECO V&C (UK) Limited owns a 12% interest.

The Company plans to build a production portfolio via acquisitions coinciding with the cyclical recovery in the oil price and the current opportune buying market in the North Sea. The Company is involved in multiple sales processes and intends to draw on its management team's considerable experience, knowledge and expertise to deliver shareholder value from its stated production acquisition strategy.

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.

This information is provided by RNS

The company news service from the London Stock Exchange

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