Statoil : takes 70% ownership and becomes operator for UK licence P.2170

P.2170 lies in the Buchan Graben in the Outer Moray Firth region, an area containing the Buchan, Buzzard and Ettrick oil discoveries.

'This transaction underpins Statoil's exploration strategy of exploiting prolific basins and deepening in core areas. It further strengthens our position on the UKCS and brings a potential impact opportunity in to our portfolio,' says Jez Averty, Statoil's senior vice president for Exploration, Norway and the UK.

Statoil will acquire 70% working interest and operatorship in the licence for a total cash consideration of 2 million USD

Following the transaction, the equity ownership in the P.2170 licence is: Statoil (operator) 70%, Jersey Oil and Gas PLC 18% and CIECO Exploration and Production (UK) Limited 12%.

This agreement is subject to approval by the Oil and Gas Authority (OGA).

'The opportunity looks promising and we are looking forward to further evaluating the data to assess the feasibility of testing the prospect. It adds additional acreage and volume potential to our UK portfolio and we could potentially drill this prospect next year,' says Jenny Morris, Statoil's Head of UK Exploration.

Statoil UK is the operator for the Mariner field, currently under development, and has the ambition to be an active explorer on the UKCS with the belief that considerable hydrocarbon resource remains undiscovered.