Business
Acquisition of CIECO V&C (UK) Limited
Acquisition of CIECO V&C (UK) Limited.
About this update from Jersey Oil & Gas Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5439G\n Jersey Oil and Gas PLC\n 26 November 2020\n \n \n \n \n 26 November2020\n \n \n \n \n \n Jersey Oil and Gas plc\n \n \n (\"Jersey Oil & Gas\", \"JOG\" \n or the \n \"Company\")\n \n \n \n \n \n \n Acquisition of CIECO V&C (UK) Limited\n \n \n \n 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 it has entered into a conditional sale and purchase agreement (\"SPA\") to acquire the entire issued share capital of CIECO V&C (UK) Limited (\"CIECO V&C\"), which is currently owned by ITOCHU Corporation (\"ITOCHU\") and Japan Oil, Gas and Metals National Corporation (\"JOGMEC\") (the \"Acquisition\"). \n \n \n \n Acquisition Highlights\n \n :\n \n \n - \n Acquisition secures an additional 12% working interest in Licence P2170 Blocks 20/5b & 21/1d (\"LicenceP2170\") (the \"Licence Interest\") thereby providing JOG with 100% ownership and full control of Licence P2170, located within JOG's Greater Buchan Area (\"GBA\") development project\n \n \n o \n CIECO V&C's sole portfolio asset is the Licence Interest \n \n \n - \n Increases JOG's ownership of the Verbier oil discovery, the majority of which sits within Licence P2170\n \n \n - \n Increases ownership of multiple high-impact exploration opportunities within Licence P2170, including three drill-ready prospects: Verbier Deep, Wengen and Cortina \n \n \n - \n Simplifies licence ownership ahead of the planned GBA farm-out process\n \n \n - \n CIECO V&C has approximately £15 million of tax losses which are expected to provide additional value to JOG following first oil\n \n \n \n Principal Acquisition Terms\n \n :\n \n \n - \n A completion payment of £150,000 in cash\n \n \n - \n Contingent payments of:\n \n \n o \n £1.5 million in cash upon consent from the UK's Oil & Gas Authority (\"OGA\") for a Field Development Plan (\"FDP\") in respect of the Verbier discovery in the Upper Jurassic (J62-J64) Burns Sandstone reservoir located on Licence P2170; and\n \n \n o \n £1 million in cash payable not later than one year after first oil from all or any part of the area which is the subject of the FDP\n \n \n Compl...