- North Sea junior taking GBA project to development
- Assessing broader co-operation
- Seeking a farm-out
What it does
Jersey Oil and Gas operates the Greater Buchan Area development, located in the heart of the Central North Sea
How is it doing
Jersey Oil and Gas owns 100% and operates the Greater Buchan Area (GBA), a major new area hub development project located in the heart of the Central North Sea.
The core component parts of the GBA include the Buchan oil field, which JOG recently announced a significant uplift in contingent resource estimates following extensive subsurface evaluation work, including dynamic reservoir modelling using Schlumberger’s proprietary INTERSECT high-resolution reservoir simulator model.
The Buchan oil field benefits from 36 years of production history and has considerable remaining production potential of good quality light sweet crude. The GBA also benefits from two other oil discoveries, Verbier and J2.
In aggregate JOG estimates discovered and recoverable oil and gas volumes of 172 million barrels of oil equivalent within the core GBA development, a material and highly economic conventional new development.
JOG is in the closing stages of completing its ‘concept selection’ work, thereafter, it intends to take the project to potential industry partners via a farm-out process, which is expected to be completed during the course of this year.
In December, Jersey also announced a new prospect, Wengen, located in Licence P2170, positioned directly west of the Tweedsmuir field and has been estimated to host some 62mln barrels of potential resources (P50).
That means JOG now has four ‘drill-ready’ prospects – namely Verbier Deep, Cortina NE, Wengen and Zermatt. Together these prospects are estimated to host some 230mln barrels of P50 prospective resources, all located within the GBA.
JOG is pursuing options for the GBA to become a low-carbon fully electrified North Sea platform.
What the CEO says; Andrew Benitz
"I am delighted with the results of dynamic modelling which result in an increase in the estimated contingent resource volumes of light sweet crude in the proven, conventional reservoir at Buchan by over 50%. These compelling results demonstrate the substantial inherent value of the Buchan field and the wider GBA development.
"We recognised the potential of Buchan at an early stage and have maintained our strategic focus on this area in the heart of the Central North Sea with the benefit of aggregation of high-value assets becoming self-evident.
"The GBA development project presents a very compelling investment case that we believe will have wide industry appeal.
"We look forward to formally engaging with industry in due course and attracting the right industry partnership aligned and committed to the GBA's future success."
What the broker says: WH Ireland
"Jersey Oil & Gas has announced a significant increase to the best estimate contingent resource estimate of the Buchan oil field to 126 mmb of oil, from 81 mmb of oil.
"The increase reflects an improved understanding of the subsurface and is premised on dynamic reservoir modelling completed by Schlumberger (in conjunction with teams from Rockflow Resources and Jersey Oil & Gas).
"As a result of the change, the recoverable oil estimate from the Greater Buchan Area, inclusive of core-satellite fields, amounts to 162 mmb.
"We are increasing our fair value estimate to 479p/sh from 378p/sh as a result."