Statoil is preparing to drill the Verbier prospect in the UK North Sea, with a rig anticipated to be in place by this summer, according to partner Jersey Oil & Gas (JOG).
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Map of Blocks 20/5b and 21/1d, from JOG. |
"We are pleased to report the continued progress being made by Statoil in preparation for drilling the Verbier prospect this summer, as well as our ongoing additional technical evaluation of the prospect," said JOG Chief Executive Andrew Benitz.
Verbier lies in Blocks 20/5b and 21/1d, in License P.2170, about 100km northeast of Aberdeen.
In its operations update, JOG confirmed that operator Statoil is currently undertaking a tender process for a drilling rig and all related services, which is expected to be awarded in the near future for the Verbier exploration well. JOG’s technical studies will also be conducted to improve and update the group's understanding of the Verbier prospect.
JOG will be carried by Statoil for up to US$25 million for the cost of the well.
Prospectivity at Verbier has been identified in the Late Jurassic and the technical studies since the award have focused on seismic reprocessing, remapping and petroleum charge studies. The completed work program has improved the delineation and risking of the prospects, JOG said.
Two medium risk independent prospects (Verbier and Cortina, having P50 STOIIP of 300 MMbbl and 212 MMbbl respectively) and one lead (Meribel) have been identified in late Jurassic ("J64") Buzzard Sandstone submarine fans.
According to JOG, several large-scale North Sea divestments have been announced by industry participants in recent months, which have given a great deal of encouragement that a new wave of deal activity is beginning in the UK Continental Shelf.
“The company continues to be involved in multiple sales processes, and the board remains confident that the management team's experience, knowledge and expertise, in particular the foundations and processes established over the course of the past 18 months, puts the company in a strong position to deliver shareholder value from its stated production acquisition strategy,” JOG said.
Analyst Malcolm Graham-Wood said that JOG is finally committed to acquiring some producing acreage to balance their portfolio.
“JOG is an interesting play and still remains cheap if you bear in mind what might be when the drill bit turns at Verbier. Significant skill will be needed in trading the shares but with the underlying upside so substantial, the risk at JOG is not being involved,” Graham-Wood said.
Statoil is the operator of Verbier with 70% stake. Partners include JOG (18%) and CIECO (12%).
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