How is it doing
Jersey owns 100% of the Buchan oil field and the J2 oil discovery, which along with the adjacent Verbier discovery comprise the Greater Buchan Area (GBA).
A CPR by contractor Rockflow previously estimated the recoverable resources in The Greater Buchan Area at 94.7mln barrels, including the parts within P2170.
That estimate, at that time, valued Jersey’s ‘mid-case’ contingent resources at some £791mln.
The consolidated Greater Buchan venture comprises Buchan field (80mln barrels), Verbier (c25mln barrels), J2 (c20mln) and Glenn (14mln).
The next steps will be for Jersey to advance the GBA project to a ‘concept selection’ decision.
Thereafter, it intends to take the project to potential industry partners via a farm-out process.
In December, Jersey also announced a new prospect, Wengen, located in Licence P2170, is position directly west of the Tweedsmuir field and has been estimated to host some 62mln barrels of potential resources (P50).
That means Jersey now has four ‘drill-ready’ prospects – namely Verbier Deep, Cortina NE, Wengen and Zermatt.
Together these prospects are estimated to host some 222mln barrels of P50 prospective resources.
What the CEO says; Andrew Benitz
“Our latest subsurface work has further detailed the significant value within the wider Greater Buchan Area,
“These highly attractive, drill-ready exploration prospects are in the immediate vicinity of our planned GBA production facility and, as a result, a discovery at any one of these prospects would have the potential to extend the GBA production plateau and further enhance shareholder value.”
What the broker says: WH Ireland
“We believe that the backdrop for Jersey is extremely positive from a commodity price perspective and concept, given the company is developing a high-quality, large-scale resource in the UK North Sea.
“All-in, despite the market under-appreciating the progress being made by Jersey, the company continues to progress the Greater Buchan Area exactly as we would like to see and we believe rewards for shareholders are forthcoming.”
The stockbroker has a price target of 268p per share.