After the Group's collapse last week, there may now be hope for the Verbier well.
Companies: Jersey Oil & Gas PLC
Jersey Oil & Gas (LON: JOG) has jumped over 40% in early trading this morning with the news all hope may not be lost yet for the Verbier well.
The jump comes after shares in the Group fell over 80% last week with the announcement that two high-profile prospects, namely the Verbier and Partridge wells, were dusters.
Today's update announced joint venture partner Statoil has recommended a sidetrack exploration well to test another target.
All approvals have been met and drilling has already commenced.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"Whilst we have been disappointed by the results of the original Verbier exploration well, JOG is pleased to support the operator's recommendation to undertake the drilling of this sidetrack exploration well. The joint venture partnership has now identified the potential for late Jurassic sands, similar to the water-bearing sands encountered in the 20/05b-13 well, to be present within the hydrocarbon window up-dip of the original well location, offering the possibility of a potentially lesser, but still commercially attractive, hydrocarbon accumulation."
The sidetrack is expected to take 25-35 days, and the cost to JOG, who owns an 18% stake in the well, is expected to be around £700k.
Before the disastrous news regarding the Verbier and Patridge wells JOG was valued at £22m to be currently valued at c. £7m with today's announcement.
