Business
Acquisition of further 15% in Biscathorpe PEDL253
Acquisition of further 15% in Biscathorpe PEDL253.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9291L\n Union Jack Oil PLC\n 18 January 2021\n \n \n \n \n Market Abuse Regulation (MAR) Disclosure \n \n \n Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement\n \n \n \n \n \n 18 January 2021\n \n Union Jack Oil plc\n (\"Union Jack\" or the \"Company\")\n Acquisition of a Further 15% Interest in the Biscathorpe Project PEDL253\n \n Union Jack Oil plc (AIM: UJO), a UK focused onshore hydrocarbon production, development and exploration company is pleased to announce that it has agreed to acquire a further 15% economic interest in PEDL253 containing the Biscathorpe project (\"Biscathorpe\") from Humber Oil & Gas Limited (\"Humber\").\n Following completion of the acquisition Union Jack will hold a 45% interest in PEDL253.\n \n Highlights\n \n ·PEDL253 is located within the proven hydrocarbon fairway of the Humber Basin, on-trend with the Keddington oilfield (Union Jack 55%) which produces oil from a Carboniferous Westphalian aged reservoir\n \n ·Union Jack will acquire a 15% interest in PEDL253, containing the Biscathorpe project, increasing its interest to 45%\n \n · Oil bearing Dinantian Carbonate reservoir of 57 metres has been confirmed by independent petrophysical analysis and oil samples from cuttings\n \n · Dinantian oil play has gross Mean STOIIP of 24.3 million barrels of oil (mmbo) with an upside of case of 36 mmbo\n \n · Evidence for a thickened Westphalian sandstone interval is apparent\n \n ·Gross Mean Prospective Resources associated with the Westphalian target total 3.95 mmbo with an upside case of 6.69 mmbo\n \n ·Economic modelling of the Westphalian target yields break-even full cycle economics estimated at US$18.07 per barrel and a gross NPV(10) valuation of £55.6 million\n \n · Planning application to be submitted during February 2021 for side-track drilling, testing and long-term production\n \n ·Cash consideration of £500,000 to be paid on Oil and Gas Authority (OGA) approval and lodging of associated documents to allow licence interest transfer and, following receipt of various planning approvals, a contingent payment of £500,000\n \n Commenting, David Bramhill, Executive Chairman of Union...