Business
Acquisition of Equinor interest & Corporate Update
Acquisition of Equinor interest & Corporate Update.
About this update from Jersey Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 9341A Jersey Oil and Gas PLC 27 January 2020 \n\n27 January 2020\n \nJersey Oil and Gas plc\n(\"Jersey Oil & Gas\", \"JOG\" or the \"Company\")\nAcquisition of Equinor UK Limited's interest in Licence P2170 and Corporate Update\nJersey 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 that it has entered into a conditional Sale and Purchase Agreement (\"SPA\") to acquire operatorship of, and an additional 70% working interest in, Licence P2170 (Blocks 20/5b and 21/1d) (\"Licence P2170\") from Equinor UK Limited (\"Equinor\") (the \"Acquisition\"). The consideration for the Acquisition consists of two milestone payments and a royalty based on potential future oil volumes produced from the Verbier Upper Jurassic (J62-J64) reservoir oil discovery (the \"Verbier Field\"), as further detailed below.\n \n \nAcquisition Highlights:\n· Acquisition of an additional 70% interest in, and operatorship of, Licence P2170 including the Verbier oil discovery\n- Contingent payments of:\n§ US$3 million upon sanctioning by the UK's Oil & Gas Authority (\"OGA\") of a Field Development Plan (\"FDP\") in respect of the Verbier Field; and\n§ US$5 million upon first oil from the Verbier Field\n- Certain royalty payments on the first 35 million barrels of oil produced from the Verbier Field calculated on the basis of a 70% working interest for on-block volumes\n· Increases total 2C discovered resources across the Greater Buchan Area (\"GBA\") by 17.5 mmboe to 142 mmboe net to JOG\n- Increases ownership of multiple high-impact exploration opportunities within Licence P2170 \n- Acquisition simplifies licence ownership structure ahead of GBA farm-out process\n· Adds an estimated US$506 million of post-tax cashflow, taking the GBA development estimate of post-tax cashflow to US$3.17 billion net to JOG and increases the estimated net NPV of the GBA development project to US$1.15 billion\n \nCorporate Update:\n· Highly experienced Project Team hires made to advance the plann...