Jersey Oil & Gas and its co-venturer, CIECO Exploration and Production (UK) Limited, have completed farm-out of a 70% working interest in UK Seaward Licence P.2170, Blocks 20/5b and 21/1d in the UK Central North Sea to Statoil (UK).
JOG 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% 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.
JOG retains an 18% interest, of which 10% will continue to be carried by CIECO, under the pre-existing arrangements between the parties, and CIECO will retain a 12% interest. Jersey Oil & Gas chief executive Andrew Benitz said: "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."
At 3:30pm: (LON:JOG) Jersey Oil And Gas Plc share price was +20.25p at 65p