Oil giant Statoil is currently looking for a drilling rig as it gears up to drill an exploration well on the Verbier prospect in the UK sector of the North Sea.
The Verbier prospect is located in Licence P.2170, Blocks 20/5b & 21/1d in the Central North Sea and is operated by Statoil’s UK subsidiary, Statoil (U.K.) Limited, with 70% working interest.
The partners in the license are Jersey Oil & Gas and CIECO Exploration and Production with 18% and 12% interests, respectively.
Statoil, as the operator of the license, made a commitment to drill the exploration well in November last year.
According to Jersey’s statement on Friday, Statoil is currently undertaking a tender process for a drilling rig and all related services to drill the Verbier well this summer. The rig contract is expected to be awarded in the near future, Jersey O&G added.
Jersey O&G also said that, in addition to Statoil’s work, it is conducting further technical studies to improve and update the group’s understanding of the Verbier prospect.
Following the beginning of the Verbier well work program, including the 4Q 2016 site survey, Jersey O&G is now benefiting from the 10 percent. carried interest arrangement in place with its other co-venturer CIECO Exploration and Production in terms of reimbursement of the well program related costs, said the company.
Additionally, pursuant to the terms of the farm-out, Statoil is funding all costs up to $25 million in respect to the drilling of the first exploration well on the license.
To remind, Statoil acquired 42 percent stake from Jersey Oil and Gas and a further 28 percent from CIECO in October 2016.
Andrew Benitz, CEO of Jersey Oil & Gas, commented: “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.”
Related to its other license in the North Sea, the Licence P.1989 Blocks 14/11, 12 & 16, Jersey O&G also said on Friday that Azinor Catalyst Limited has stated its intention to drill an exploration well the Partridge prospect, previously named Homer, later this year. Jersey has 20% working interest in the license.
The company added that, further to the terms of the farm-out announced by the company on January 5, 2016, subject to a discovery being made that satisfies certain technical criteria, a payment of $2m would be due to the company from Azinor, and, should that discovery subsequently result in a formal Field Development Plan being approved, a further cash payment of $2m would also be triggered.
Offshore Energy Today Staff