Jersey Oil and Gas is working on selling a further part of its interests in the Greater Buchan Area in the North Sea.
In June the Aim-listed company agreed a deal with Neo Energy to come in as the operator of the project and take a 50% stake.
In a market update yesterday, Jersey said it was in discussions about reducing its holding in the area, which is thought to contain the equivalent of more than 100 million barrels of oil, to between 20 and 25%.
Financial results showed it suffered a £2.9million loss in the first six months of this year.
Andrew Benitz, CEO of Jersey Oil & Gas, said: "The first half of the year has been a pivotal period in the history of the company.
"With the farm-out to Neo Energy completed, the Greater Buchan Area (GBA) development solution locked down and the licences covering the area extended, we now have a clear pathway to monetising the resource base we have built up over recent years.
"We are encouraged by the collaborative progress being made by Neo and look forward to finalising the acquisition agreements for the FPSO, creating additional value through securing further farm-outs and moving onwards with the various workstreams required to get to field development plan approval next year."
The two partners in the £700 million-plus GBA project have decided the best option for developing the assets is to use a floating production storage and offloading (FPSO) vessel.
It would be linked to one of the many floating wind farms planned for the North Sea, making the Moray Forth fields “electrification ready”
Buchan came on stream in 1981, but production halted in 2017 because the Buchan Alpha platform was unsafe and had to be removed by then-operator Repsol Sinopec.
Jersey has been working on plans for the area for several years, but extended its development timeline in late 2021 to allow for further studies on electrification.
A restart of production from Buchan is targeted for 2026.