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Jersey Oil and Gas to Acquire CIECO V and C
Friday 27 November 2020

Jersey-based upstream oil and gas company Jersey Oil and Gas (AIM: JOG), which is ‎focused on the UK Continental Shelf region of the North Sea, has entered into a conditional sale and purchase agreement to acquire the entire issued share capital of CIECO V and C Ltd., which is currently owned by Itochu Corp. and Japan Oil, Gas and Metals National Corp, the company said.

The acquisition secures an additional 12% working interest in Licence P2170 Blocks 20/5b and 21/1d thereby providing JOG with 100% ownership and full control of Licence P2170, located within JOG's Greater Buchan Area development project.

CIECO V and C's sole portfolio asset is the Licence Interest.

The deal also increases JOG's ownership of the Verbier oil discovery, the majority of which sits within Licence P2170.

Under the deal, Jersey will make a completion payment of GBP 150,000 (USD 199,500) in cash.

Contingent payments include GBP 1.5m in cash upon consent from the UK's Oil and Gas Authority for a Field Development Plan in respect of the Verbier discovery in the Upper Jurassic (J62-J64) Burns Sandstone reservoir located on Licence P2170; and GBP 1m in cash payable not later than one year after first oil from all or any part of the area which is the subject of the FDP.

Completion of the acquisition is subject to OGA approval. The acquisition is also contingent on ITOCHU acquiring JOGMEC's shares in CIECO V and C ahead of completion, the timing for which is anticipated to coincide with the OGA's approval process.

For its latest financial year to 31 December 2019, CIECO V and C had no revenues and recorded a loss before tax of GBP 13.6m. CIECO V and C is being acquired on a cash free and debt free basis.

JOG is a UK E and P company focused on building an upstream oil and gas business in the North Sea.

The company holds a significant acreage position within the Central North Sea referred to as the Greater Buchan Area, which includes operatorship and 100% working interests in blocks that contain the Buchan oil field and J2 and Glenn oil discoveries and, subject to completion of the above acquisition, a 100% working interest in the blocks that contain the Verbier oil discovery and other exploration prospects.
Date Published: 27/11/2020