Statoil completes UK North Sea farm-in
Jersey Oil & Gas and CIECO Exploration have completed a sale and purchase agreement giving Statoil (U.K.) a 70% interest in UK central North Sea license P.2170, blocks 20/5b and 21/1d.
Under the terms of the farm-out, Jersey will receive a cash consideration of $0.54 million from Statoil, with a further $1.2 million payable to the company’s partners in the North SeaAthena asset, in accordance with a historical settlement agreement.
Post completion Statoil will operate the license and will fund all costs up to $25 million for the first exploration well to be drilled.
Andrew Benitz, Jersey’s CEO, 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, conceivably during 2017.”