Norway's Statoil has agreed to acquire a 70% stake in two blocks in the UK North Sea from Jersey Oil & Gas and CIECO Exploration for US$2 million, and is planning to drill and exploration well on one of the blocks in 2017.
The two blocks, 20/5b and 21/1d, are in production license 2170 in the UK central North Sea. According to Jersey, P.2170 contains two medium risk independent oil prospects identified with unaudited estimated mean in place volumes of 300-212 MMstb.
Statoil will fund all costs up to US$25 million in respect of the first exploration well to be drilled on the license. Planning of the exploration well is expected to commence this year, with drilling potentially planned for 2017.
Jersey currently holds, through its wholly owned subsidiary, Trap Oil, a 60% interest, with CIECO holding the remaining 40%. On completion, Jersey will retain an 18% interest and Cieco 12%. Statoil will be operator.
The deal is subject to regulatory approvals. Andrew Benitz, CEO of Jersey Oil & Gas, said: “The P.2170 License 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. Individual prospects of this materiality are increasingly rare in the North Sea and to have a leading international operator such as Statoil joining our partnership group, serves to demonstrate the significant value-potential of this asset."