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Shares of Jersey Oil and Gas PLC (LON: JOG) surged 42.3% after the British independent North Sea focused upstream oil and gas company released new contingent resource estimates for the Buchan oil project located in the North Sea.
The new resource estimates were arrived at following dynamic reservoir work conducted by Schlumberger, which made the company raise the P50 estimate of technically recoverable oil resources at Buchan to 126 million barrels.
Today’s estimate improved the prior estimate of approximately 82 million barrels, given that the Buchan oil field is the central section of the Greater Buchan Area (GBA) hub project.
The P50 estimate is based on 507mln STOIIP (stock tank oil initially in place) barrels. The upside resource estimate (P10) sees 615mln of STOIIP barrels and 184mln barrels of technically recoverable resources, whilst the conservative estimate (P90) has 426mln barrels STOIIP and 72mln barrels recoverable.
Andrew Benitz, Jersey Oil’s CEO, said: “I am delighted with the results of dynamic modelling which result in an increase in the estimated contingent resource volumes of light sweet crude in the proven, conventional reservoir at Buchan by over 50%. These compelling results demonstrate the substantial inherent value of the Buchan field and the wider GBA development.”
“We recognised the potential of Buchan at an early stage and have maintained our strategic focus on this area in the heart of the Central North Sea with the benefit of aggregation of high-value assets becoming self-evident,”
The company expects to find the right partners to help it commercialise the project, which presents a very compelling investment case that will appeal to many industry players.
Jersey Oil & Gas share price
Jersey Oil shares rallied 42.37% to trade at 168p having risen from Monday’s closing price of 118p.
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