The Press and Journal (Aberdeen and Aberdeenshire)
Statoil buys large stake in North Sea
Energy: Region’s assets farmed out
Norwegian energy giant Statoil is snapping up a 70% stake in UK North Sea assets owned by Jersey Oil and Gas (JOG) and Cieco Exploration and Production in a deal worth £1.5million.
The conditional agreement will give Statoil operatorship of P2170 licence blocks in the Outer Moray Firth region, an area containing the Buchan, Buzzard and Ettrick oil discoveries.
JOG, whose shares surged nearly 15% to 35p after its farm-out announcement yesterday, has a 60% stake and Cieco owns the remaining 40%.
If the Oil and Gas Authority approves the deal, Statoil will hold 70%, Jersey 18% and Cieco 12%. The acquisition would see JOG net about £910,000.
Statoil – whose Aberdeen-based UK North Sea operations are led by Tove Stuhr Sjoblom – has agreed to put £19million towards the cost of an exploration well on the licence, with drilling planned for 2017.
The licence area contains two oil prospects with combined estimated volumes of more than 500million stock-tank barrels.
Jenny Morris, Statoil’s head of UK exploration, said: “The opportunity looks promising and we are looking forward to further evaluating the data to assess the feasibility of testing the prospect.
“It adds additional acreage and volume potential to our UK portfolio and we could potentially drill this prospect next year.”
JOG chief executive Andrew Benitz added: “We are delighted to have secured a farm-out partner of the calibre of Statoil. The P2170 licence area has significant exploration potential for the discovery of oil and we look forward to drilling one of the prospects with our partners, potentially next year. This farm-out deal exposes our shareholders to 18% of a prospect with significant potential and a carry in respect of the costs of the budgeted exploration well.”