Jersey Oil and Gas PLC (LON:JOG) said it completed the £150,000 deal to take full ownership of Licence P2170, which hosts most of the Verbier discovery and is one part of the Greater Buchan Area (GBA) development project.
“This is an important acquisition for our recently launched farm-out process in respect of our GBA development project and increases JOG's discovered resources, adds material value and exploration upside in addition to useful tax losses that accompany the corporate acquisition," said chief executive Andrew Benitz.
The deal sees Jersey acquire partner CIECO V&C (UK), a joint venture between Japanese firms ITOCHU Corporation and JOGMEC (Japan Oil, Gas and Metals National Corporation). A 12% stake in Licence P2170 is CIECO’s sole asset.
Consideration for the transaction comprises £150,000 in cash plus up to a total of £2.5mln in contingent future payments - £1.5mln when a field development plan is approved by the UK's Oil & Gas Authority and £1mln upon the first anniversary of ‘first oil’.