Jersey Oil and Gas has wrapped up the acquisition of a 70% stake in the UK North Sea licence containing the Verbier discovery from Equinor.
London-listed Jersey said the deal, first announced in January, also provided access to “multiple material exploration prospects” which could be included in its plans to develop the Greater Buchan Area (GBA).
The transaction does not involve any upfront cash payments, but consists of two “milestone payments” and royalties based on volumes produced from Verbier.
Equinor farmed into the P2170 licence in the outer Moray Firth in 2016, but decided to sell the stake back to Jersey after “disappointing” exploration results at Verbier.
The appraisal suggested Verbier had just 25 million recoverable barrels of oil equivalent, despite earlier hopes resources had been be as high as 130m.
Jersey chief executive Andrew Benitz said: “I am pleased that we have completed this important step to acquire an additional interest and operatorship in the Verbier discovery together with material exploration upside to facilitate our plan to develop Verbier as part of our GBA development.
“We continue to make solid progress on concept select for the GBA and work closely with contractors, other area stakeholders and the OGA on this important project.”
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