Jersey Oil and Gas (JOG) announced on 20 May 2020 that it has completed the acquisition of Equinor's 70% interest and operatorship in licence P2170 (Blocks 20/5b and 21/1d). The deal originally announced on 27 January 2020 stated that the acquired interest is in return for two milestone payments and associated royalties with the Verbier discovery. Under the terms of the deal JOG will pay USD 3 million once the Field Development Plan has been sanctioned by the OGA. A further payment of USD 5 million will be paid once Verbier comes onstream. With regards to the royalties, Equinor will receive (net 70%) payments on the first 35 MMbo produced. JOG is hoping to push towards select gate in Q3 2020 as it looks to develop the Greater Buchan Area which is comprised of the Buchan redevelopment project, Verbier, J2 discovery and Glenn. Following the development concept selection process is completed JOG will launch its farm-out process for the project.    The company believes that its acreage contains 120 MMboe of discovered mean recoverable resources and further potential within identified mean prospective resources. It is estimated from JOG that Buchan (Devonian) alone contains over 80 MMbo (recoverable) with further potential in a shallower reservoir (Andrew sands) sat above the main Buchan reservoir. Buchan is thought to be the main new hub for the area development. The development of the J2 discovery will run concurrently with Buchan. J2 is thought to be made up of two accumulations, approximately 20 MMbo present in the Sgiath sandstone Formation and further recoverable oil in Upper Jurassic sands which are thought to be a potential eastern extension of the Verbier discovery. Glenn is located 15 km to the east of Buchan and could be a potential tie-back to Buchan. Glenn is a faulted horst with oil sat within Upper Jurassic, shallow marine Sgiath Formation sands. It is thought that Glenn could hold up to 14 MMbo (recoverable). The Verbier discovery, which was unsuccessfully appraised by Equinor with JOG as a partner in 2019 is thought to contain approximately 25 MMboe. It is thought that a large part of the mapped area of the Verbier discovery located to the northwest of the recent appraisal well remains untested along with further additional resource potential thought to sat in a deeper horizon beneath Verbier. JOG also has a prospect called Cortina in this area and from the recent acquisition of the 2018 PGS Geostreamer 3D data this additional potential will be further reviewed.  Following completion of the deal, interest in P2170 is held by Jersey Petroleum Ltd (88% + operator) and CIECO V&C (UK) Ltd (12%).
Jersey has completed the acquisition of 70% + operatorship in P2170 / blocks 20/5b + 21/1d from Equinor in exchange for payment (USD 3 & 5 MM linked to Verbier clearance + production) + royalty based on oil production from the Verbier U. Jurassic reservoir. Jersey (op) 70%, Equinor 18%, CIECO 12%