Jersey Oil & Gas today confirmed Azinor Catalyst had snapped up its interest in a North Sea licence located in the Moray Firth.
The deal will see Catalyst absorb Jersey’s 50% share and Noreco’s 50% share in Seaward Production Licence P.1989 Blocks 14/11, 12 & 16, becoming full operator or the licence area.
The licence, which was awarded in the 27th licensing round, is located in the North West Witch Ground Graben in the Moray Firth.
The deal will see Catalyst pay the previous partners $2million within 90 days of when an exploration well drilled in the licence area exceeds “a threshold of net-pay with a vertical extent of no less than 20 metres of sands with a hydrocarbon saturation above 60%, and a permeability cut-off of 1mD”.
Catalyst will pay an additional $2million within 90 days of field development plan being approved.
Jersey chief executive, Andrew Benitz, said: “We are pleased to announce this farm-out to Catalyst. In line with our stated strategy, Jersey Oil & Gas is actively managing and de-risking its existing exploration portfolio and this transaction ensures that the company maintains exposure to the potential upside from this licence, at no further cost to the company.”