Business
Acquisition of Further 35% Interest in Keddington
Acquisition of Further 35% Interest in Keddington.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \n \n RNS Number : 3395F\n Union Jack Oil PLC\n 09 March 2020\n \n \n \n \n Market Abuse Regulation (MAR) Disclosure\nCertain 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 9 March 2020\n \n Union Jack Oil plc\n (\"Union Jack\" or the \"Company\")\n Acquisition of an Additional 35% Interest in the Producing Keddington Oilfield PEDL005(R)\n \n Union Jack Oil plc (AIM: UJO), a UK focused onshore hydrocarbon production, development and exploration company is pleased to announce the acquisition of an additional 35% economic interest in PEDL005(R) containing the producing Keddington Oilfield (\"Keddington\") from Terrain Energy Limited (the \"Acquisition\").\n Following completion of the Acquisition, Union Jack will hold a 55% economic interest in Keddington, with Egdon Resources plc (\"Egdon\" or the \"Operator\") holding the remaining 45%.\n \n Highlights\n \n · Union Jack's interest in the Keddington Oilfield increases to 55% following completion\n \n · Net Contingent Resource increases to 311,000 barrels (\"bbls\") of oil\n \n · Net Prospective Resource increases to 349,250 bbls of oil\n \n · Potential to increase production volumes multi-fold via a relatively inexpensive side-track well\n \n The consideration for the Acquisition is £200,000. In addition, Union Jack has assumed costs of £35,000 in relation to site activities from the effective economic date of the Acquisition, being 1 January 2020 (the \"Economic Date\"). The cost of the acquisition will be financed by existing cash resources. The Company will receive its increased share of Keddington production proceeds from the Economic Date. The Acquisition is subject to approval by the Oil & Gas Authority.\n \n Keddington\n Keddington, currently producing approximately 28 bbls of high-quality oil per day from Carboniferous age sandstone reservoirs, is located along the highly prospective East Barkwith Ridge, an east-west structural high on the southern margin of the Humber Basin.\n A detailed, in-depth subsurface review of the Keddington field and the surrounding licence area was conducted by Egdon and Union Jack during 2019, resulting in a fully audited and consiste...