UK-based Jersey Oil & Gas closed the sale of 50% interest in the Greater Buchan Area (GBA) licences in the UK Central North Sea to NEO Energy.

The transaction, which was announced in April 2023, included Jersey Oil & Gas’ 50% stake in both licence P2498 and licence P217.

In exchange, the company has now received $2m cash payment on completion of the transaction, and will also receive a full carry for its 50% share of the estimated  $25m cost to advance the Buchan field through to field development plan (FDP) approval.

As part of the transaction, Jersey Oil & Gas will also receive cash payment of $9.4m upon finalisation of the GBA development solution, $12.5m in cash on Buchan FDP approval by the North Sea Transition Authority; and a 12.5% carry of the Buchan field development costs included in the approved FDP.

In addition, The company will receive a $5m cash payment on each development plan approval by the NSTA with regard to  the J2 and Verbier oil discoveries.

Jersey Oil & Gas CEO Andrew Benitz said: “We are delighted to have completed the farm-out transaction and to be swiftly moving forwards with finalisation of the GBA development solution. 

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“With the route and the funding secured for preparation of the Buchan Field Development Plan, our attention now turns to unlocking further value by securing an additional GBA partner ahead of FDP approval and retaining a fully carried 20-25% interest in the development programme.”