By Adria Calatayud

Shares of Jersey Oil & Gas PLC (JOG.LN) rose as much as 40% in early trading Monday as the company said that operations of an exploration well located in the North Sea have started, following a revaluation of its potential for hydrocarbons.

The oil and gas company whose geographic focus is the U.K. Continental Shelf said that joint venture partners, led by operator Statoil U.K. Ltd., agreed over the weekend to target the North Sea site. Drilling is expected to take between 25 to 35 days, Jersey said.

The joint venture partners have agreed that indications of the potential for hydrocarbons to be present in a smaller accumulation of the 20/05b-13 Verbier exploration well can't be ruled out after evaluating wireline log data, the company added. Jersey said last week that it encountered water bearing Upper Jurassic sands deeper than anticipated and that a decision on whether to drill would be taken.

Shares at 0821 GMT were up 34% at 88.9 pence.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

September 18, 2017 04:37 ET (08:37 GMT)

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