Jersey Oil & Gas (JOG) receives 100% working interests and operatorship of three blocks in the Greater Buchan Area (GBA) including the Buchan oil field and the J2 oil discovery, while Talon Petroleum together with One-Dyas win Block 14/30b containing Thelma prospect (a Burns Sandstone stratigraphic trap, 29 MMbo*), Louise prospect (a Piper Fault Block target, 17 MMbo*) and Buffalo prospect (a Kopervik Sandstone target, 160 Bcf*).
The three blocks awarded to JOG are in close vicinity of P2170 (Buchan blocks – 20/5b and 21/1d) which contains the Verbier oil discovery (2017) with a low case estimation of discovered resources of 25 MMboe. In P2170, JOG owns 18% shares, with Equinor UK (70%) being the operator and co-venturer CIECO V&C UK with 12%.
The Greater Buchan Area has the potential to become a major new area hub development in the future, where more than 100 MMboe of discovered mean resources plus over 300 MMboe of identified mean prospective resources can be accessed.
The field development plan, initiated by JOG, includes the redevelopment of the Buchan oil field, together with the J2 oil discovery, and potentially the development of the Verbier discovery, as well as other discovered and yet-to-be-found resources in the GBA. JOG aims to produce first oil in 2024.
The Buchan oil field was discovered in the mid-1970s by BP, and from 1981 until 2017, it produced a total of 148 MMbbls. JOG estimates that over 80 MMboe recoverable are still to be produced from the field.
Additionally, JOG has entered into a three months option agreement that will give Equinor a 50% interest in Buchan blocks, meaning that JOG will become the block’s operator, with Equinor reimbursing the costs related to the license applications if the agreement is exercised.
The 14/30b block awarded to Talon and ONE-Dyas is located near Talon’s P2360 license (100%) containing the Skymoos prospect, which holds 107 MMboe*.
After all technical work has been completed, Talon estimates a commercial success rate of between 20-25% for both the Thelma and Louise prospects and 30% for the Buffalo prospect. The two years work program includes the poststack processing of 100 km2 of existing 3D seismic data and a geochemistry study.