Jersey Oil & Gas: Statoil Agrees to Drill Well on P.2170 License
November 14 2016 - 4:19AM
Dow Jones News
By Alex MacDonald
LONDON--U.K. North Sea-focused Jersey Oil & Gas PLC(JOG.LN)
said Monday that Statoil ASA (STO), the operator of the UK Seaward
Licence P.2170, has committed to drilling a well on the license in
the summer of 2017.
The plan is in keeping with Statoil's August agreement to
acquire a 70% stake in a series of U.K. North Sea projects in
return for a $2 million up-front cash payment and the promise to
spend up to $25 million on drilling a new well.
Jersey Oil and its partner CEICO Exploration and Production own
60% and 40%, respectively, of License P.2170, Blocks 20/5b and
21/1d. Once the deal is completed, Statoil will own 70% of the
assets. Jersey will retain an 18% stake, of which 10% will continue
to be carried by CIECO, and CIECO will retain a 12% stake in the
assets. Jersey Oil will earn $1.2 million of the up-front cash
payment.
Jersey's shares were up 3.4% at 105.5 pence share, resulting in
a market capitalization of GBP8.9 million or $11 million.
Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
November 14, 2016 04:04 ET (09:04 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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