Jersey Oil and Gas PLC Completion of Farm-out to Statoil (9215L)
October 06 2016 - 9:07AM
UK Regulatory
TIDMJOG
RNS Number : 9215L
Jersey Oil and Gas PLC
06 October 2016
6 October 2016
Jersey Oil and Gas plc
("Jersey Oil & Gas" or the "Company")
Completion of Farm-out to Statoil
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and
gas company focused on the UK Continental Shelf region of the North
Sea, is pleased to announce that, further to the announcement of 23
August 2016, the Company, alongside its co-venturer, CIECO
Exploration and Production (UK) Limited ("CIECO"), has now
satisfied all conditions precedent. Following receipt of funds by
all parties, which is expected imminently, JOG will have completed
on the sale and purchase agreement ("SPA") with Statoil (U.K.)
Limited ("Statoil"), a leading multinational oil and gas company,
for the farm-out to Statoil of, in aggregate, a 70 per cent.
working interest in UK Seaward Licence P.2170, Blocks 20/5b and
21/1d (the "P.2170 Licence") located in the UK Central North Sea
(the "Farm-out").
In accordance with the terms of the Farm-out, the Company will
receive a cash consideration of US$540,000 from Statoil. The
balance of the US$1.2 million cash consideration, due to JOG as
part of the farm-out agreement, is payable to the Company's
partners in the Athena asset, in accordance with the Company's
historical settlement agreement.
Post completion of the Farm-out, Statoil will hold 70 per cent.
of Licence P.2170 as operator and will fund all costs up to US$25
million in respect of the first exploration well to be drilled. The
Company retains an 18 per cent. interest, of which 10 per cent.
will continue to be carried by CIECO, pursuant to the pre-existing
arrangements between the parties, and CIECO will retain a 12 per
cent. interest.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are delighted to be completing this farm-out to Statoil. The
P.2170 Licence area has significant exploration potential for the
discovery of oil and we look forward to drilling one of the
prospects with our partners, conceivably during 2017."
Enquiries:
Jersey Oil & Gas Andrew Benitz, C/o Camarco:
plc CEO Tel: 020 3757 4983
Strand Hanson Limited James Harris Tel: 020 7409 3494
Matthew Chandler
James Bellman
FirstEnergy Capital Hugh Sanderson Tel: 020 7448 0200
LLP David van Erp
Camarco Billy Clegg Tel: 020 3757 4983
Georgia Mann
Sean Blundell
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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October 06, 2016 10:07 ET (14:07 GMT)