Business
Acquisition of Interest in Fiskerton Airfield
Acquisition of Interest in Fiskerton Airfield.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \nRNS Number : 5925V Union Jack Oil PLC 06 November 2017 \n\nMarket 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 \n6 November 2017\n \nUNION JACK OIL PLC\n(AIM: UJO)\n \nAcquisition of Interest in Producing Fiskerton Airfield Oilfield EXL294\n \nUnion Jack Oil plc (\"Union Jack\" or the \"Company\"), a UK-focused onshore oil and gas production and exploration company, is pleased to announce that it has signed a Sale and Purchase Agreement (the \"Agreement\"), to acquire from Egdon Resources plc (the \"Operator\") a 20% economic interest in licence EXL294 containing the producing Fiskerton Airfield Oilfield (\"Fiskerton\").\n \nThe cash consideration for the 20% interest, payable from existing cash resources, is approximately £137,000. This figure includes a pro rata share of the Operator`s legal, licence, planning and acquisition costs.\n \nThe Company's initial review of historic 3D seismic and drill logs suggests that there is upside potential in the oil resources at Fiskerton. Union Jack will fund a 3D seismic re-processing exercise on behalf of the Joint Venture to assist in re-mapping the area over approximately 24 square kilometres surrounding Fiskerton to identify further production opportunities from the reservoir. It is estimated that initial interpretations from the 3D seismic re-processing will be available during H1 2018. The cost of this exercise to Union Jack will be £35,000. \n \nThe effective date of the agreement is 3 November 2017 and Union Jack will receive 20% of all production revenues from Fiskerton from that date. \n \nCompletion of the acquisition is subject to Oil and Gas Authority approval.\n \nFollowing completion of the transaction, the interests held in EXL294 will be:\n \n\n\n\n\nEgdon Resources plc (Operator)\n\n\n80%\n\n\n\n\nUnion Jack Oil plc\n\n\n20%\n\n\n\n\n \nEXL294, containing Fiskerton, is located approximately seven miles east of the City of Lincoln. Fiskerton was discovered in 1997 and cumulative production has totalled approximately 440,000 barrels of oil from the most likely mapped Oil in Place of 2.2 million b...