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Acquisition of Further Interest in Wressle Project
Acquisition of Further Interest in Wressle Project.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \n \n RNS Number : 1805P\n Union Jack Oil PLC\n 08 June 2020\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 8 June 2020\n \n Union Jack Oil plc\n (\"Union Jack\" or the \"Company\")\n Acquisition of Further Interest in the Wressle Hydrocarbon Development Project\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 12.5% economic interest in PEDL180 and PEDL182 containing the Wressle hydrocarbon development project (\"Wressle\") from Humber Oil & Gas Limited (\"Humber\") for a cash consideration of £500,000 (the \"Acquisition\").\n \n Highlights:\n \n · Union Jack will acquire a further 12.5% in the Wressle development, increasing its interest to 40%, reaffirming Union Jack's ongoing commitment to one of the Company`s three flagship projects\n \n · The Acquisition is value accretive and increases Union Jack`s 2P Reserves and 2C Contingent Resource base at Wressle by 45.5%\n \n · The Internal Rate of Return to the Company of the Acquisition is 46%, underlining the economic attractiveness of the Acquisition and the Wressle project\n \n · The Wressle project economics remain strong in today`s oil price environment, with a cash break-even oil price estimated at US$17.62 per barrel\n \n · Planning approval for the Wressle project is in place and development is underway\n \n · The economic impact on the Company of establishing first oil at Wressle during H2 2020 will be financially transformative and will be enhanced by the Acquisition\n \n · A Deferred Consideration of £1,040,000 to be paid to Calmar LP on \"first commercial oil\"\n \n · Union Jack remains in a strong financial position with current cash reserves in excess of £5.5 million and fully funded for its existing drilling, testing and development commitments on all of its projects during 2020\n \n Commenting, David Bramhill, Executive Chairman of Union Jack, said:\n \"This Acquisition is important to Union Jack and increases our interest in Wressle, with production anticipated to comm...