CIECO entered into Sale and Purchase Agreement with Statoil to farm-out an interest in Licence P.2170 Blocks 20/5b & 21/1d

CIECO and Trap Oil Limited (operator, a subsidiary operating company of Jersey Oil and Gas plc) have entered into a Sale and Purchase Agreement (“SPA”) with Statoil (U.K.) Limited (“Statoil”) to farm-out an interest in Licence P.2170 Blocks 20/5b & 21/1d (“Licence”).

On completion of the SPA, Statoil will hold 70% interest in the Licence as operator, CIECO will retain 12% interest and Trap Oil Limited will hold 18% interest.

Planning of the first exploration well is arranged to commence this year, with drilling potentially expected into 2017.

The Licence is located in the UK Central North Sea and was awarded in the UK 28th Seaward Licensing Round. Two prospects have been identified with the principal prospect having a STOIIP range of 191-450 MMbbls.