Page 16 - Euroil Week 18 2020

EurOil PROJECTS & COMPANIES EurOil
JOG eyes partner despite price collapse
UK
JOG is targeting more than 200mn barrels of oil equivalent.
UK junior Jersey Oil & Gas (JOG) has said it will push ahead with a farm-out process later this year at its Greater Buchan Area (GBA) in the North Sea, despite the oil price collapse.
Jersey is targeting first oil at the Moray Firth project in 2015, and JOG wants to launch a sales process once the concept selection phase is completed this summer. Reserves are esti- mated at more than 200mn barrels of oil equiv- alent (boe).
“We are moving ahead, at speed, through the planning phases of this development and we will be approaching the concluding parts of the concept selection phase,” JOG said. “Nonethe- less,thecostsofdevelopingtheGBAareawillbe substantial and once we have passed through the key stages of concept select[ion] we will launch aprocesstoattractindustrypartnersandaddi- tional providers of capital in order to advance this important project, taking into account mar- ket conditions at that time.”
In January JOG struck an agreement to buy a 70% stake in GBA licence P2170 containing the
Verbier oil discovery from Norway’s Equinor. The deal is due to add 17.5mn boe to JOG’s resource base in the area.
JOG’s planned farm-out will include Verbier, the main Buchan field, the J2 and Glenn oil dis- coveries and nine exploration prospects. It did not say whether early discussions on a deal had taken place. The M&A market in the North Sea is currently weak, owing to uncertainty about how quickly demand will recover after lockdowns and the long-term outlook for oil.
“The company is currently entirely focused on the timely delivery of concept selection for this major new area hub that has the potential tocreatesignificantvalueforstakeholders,”CEO Andrew Benitz said. “JOG has assembled a team with the right skills, experience and track record toimplementitsGBAdevelopmentplan.”
JOG reported a broadly flat annual loss on May 6 for 2019 of GBP2.2mn ($2.7mn), as income from a settlement agreement more or less offset an increase in administrative expenses.™
Lukoil’s Trident well fails to deliver
ROMANIA
A well drilled by oil services company Grup Servicii Petroliere (GSP) to evaluate the poten- tial of Trident natural gas deposit explored by Lukoil (88%) and Romgaz (12%) failed to con- firm the initial estimates of 32bn cubic metres (bcm), Profit.ro reported, quoting Romgaz representatives.
Lukoil and Romgaz state that, based on data provided by the newly drilled well, they are updating the geological model and reworking the calculations necessary to adopt the invest- ment decision.
Profit.ro comments that the chances of a quick investment decision are slim since such a decision in the Black Sea is only likely at gas prices above $20 per MWh, nearly three times the current price on the Vienna ECHR stock
exchange.
The two companies say that they have not
given up hope of discovering additional explo- ration potential within the same block, and in this respect contracts with specialised compa- nies including CGG and Schlumberger are being concluded.
The block, EX 30 - Trident, is located on the continental shelf of the Black Sea, in a little-ex- plored border area, and covers an area of 1,006 square km, with water depths ranging from 180 to 1,200 metres.
For the deep drilling campaign, the first carried out by a local company, GSP rented the semi-submersible platform Scarabeo 9 from Saipem oil service company, for a sum of $150mn ™
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w w w . N E W S B A S E . c o m Week 18 07•May•2020