Jersey Oil and Gas has won additional acreage in the UK North Sea as of OGA’s 31st Supplementary Offshore Licensing Round focused at the Greater Buchan Area of the UK Continental Shelf.
The UK North Sea-focused oil company has now secured 100% working interest and operatorship of Block 21/2a.
Jersey on Friday said the area included the Glenn oil discovery, adding a further 14 million barrels of oil equivalent (“mmboe”) discovered mean recoverable resources.
To remind, as part of the same offshore licensing round, Jersey in July already won 100% working interests and operatorship of three blocks in the OGA’s 31st Supplementary Offshore Licensing Round, 20/4c and 20/5d & 21/1a, including the Buchan oil field and the J2 (well 20/5a-10Y) oil discovery.
As reported in July, the Block 21/2a was to be awarded to Decipher, however, this block too has now been awarded to Jersey Oil & Gas.
Andrew Benitz, CEO of Jersey Oil & Gas, said: “We are delighted to announce this further license award within the Greater Buchan Area. This additional acreage completes a 100 per cent success rate of awards across all of the acreage we applied for in the 31st Supplementary Offshore Licensing Round. The Glenn oil discovery contained therein adds additional discovered resources net to JOG as well as operatorship of another discovered resource in the area of our Buchan-centred development hub plans for the GBA.”
The license in respect of Block 21/2a comprises a two-year Initial Term with certain firm work obligations, principally comprising geotechnical studies, with a drill or drop well obligation at the end of the term.
The acreage is contiguous with the previously announced 31st Supplementary Offshore Licensing Round awards both in the Greater Buchan Area (“GBA”) containing the Buchan and J2 discoveries and the Capri, Chamonix, Courchevel and Zermatt prospects and the Licence P2170 (Blocks 20/5b and 21/1d) acreage that contains the Verbier oil discovery, in which JOG holds an 18% working interest alongside operator, Equinor UK Limited (“Equinor”) (70%), and CIECO V&C (UK) Limited (12%), the company said.
“Together with its interest in the Verbier discovery and previous GBA acreage awards, the addition of Block 21/2a to its portfolio provides the Company a significant opportunity to operate a major new area development of in excess of 120 million barrels of oil equivalent (“mmboe”) of discovered mean recoverable resources net to JOG,” Jersey added.
Related: Jersey’s new UK acreage opportunity to establish ‘major new area hub development’
The company has already started work on a Field Development Plan (“FDP”) seeking to deliver a JOG-operated area hub development.
The hub will be planned to redevelop the Buchan oil field, together with the development of the J2 oil discovery and potentially the Glenn and Verbier oil discoveries as well as other discovered and yet-to-be-found resources in the GBA.
First oil, subject to funding, is targeted for 2024. JOG will evaluate and determine the optimal sustainable development plan, designed to deliver phased and extended plateau production.
The Buchan field, located in the area, came online in 1981 using the Buchan Alpha floating drilling rig which was on station for around 36 years.
The unit reached the end of its design life and has been removed from the location. However, OGA claimed that significant oil and gas resources were estimated to remain in the Buchan reservoir and the Greater Buchan region, making it a valuable area of the North Sea and thus proceeding to offer blocks to interested parties.
Offshore Energy Today Staff
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