STATOIL has decided to drill an appraisal well on a find it made in the Moray Firth with a relative minnow in a move that underlines its belief in the exploration potential of the UK North Sea.
The Norwegian giant caused excitement in the industry in October when it announced it had made a find that could contain up to 130 million barrels with the Verbier well 60 miles north east of Aberdeen.
The multi-billion company was persuaded to buy into the acreage containing Verbier by Jersey Oil & Gas, which has a market capitalisation of just £42 million.
Jersey retains an 18 per cent interest in the licence. Its chief executive Andrew Benitz said yesterday the company was pleased plans to appraise the Verbier find had been confirmed. The partners in the licence have made good progress with recent technical work.
They appear to believe more oil could be found in the area. The approved work programme includes the acquisition of a site survey to progress exploration activity on the licence.
Statoil’s UK North Sea exploration chief, Jenny Morris, has said the Verbier find proved there could be significant remaining potential in the mature basin.
The find provided a huge boost for Jersey, which is trying to generate value from the rump of the assets amassed by the Trap Oil business.
Trap built up a big North Sea portfolio helped by the £30m acquisition of Banchory- based Reach Oil & Gas in 2011 but suffered hefty losses after the crude price plunged in 2014.
Jersey had a market value of £5.6m before the Verbier find was announced.
Statoil has a 70 per cent stake in the Verbier licence. Japan’s CIECO has 12 per cent.
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