Business
Acquisition of Interest in PEDL143
Acquisition of Interest in PEDL143.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \nRNS Number : 9388Y Union Jack Oil PLC 23 May 2016 \n\n \nUNION JACK OIL PLC\n(AIM: UJO)\n Acquisition of Interest in PEDL143 incorporating the Holmwood Prospect\n \nUnion Jack Oil plc (\"Union Jack\" or the \"Company\"), an onshore oil and gas exploration and production company with a focus on, exploration, production, development and investment opportunities in the United Kingdom (\"UK\") hydrocarbon sector, is pleased to announce it has reached agreement with Europa Oil & Gas Limited (\"Europa\" or the \"Operator\") to acquire a 7.5% economic interest in PEDL143 located within the Weald Basin, located in southern England and containing the drill-ready Holmwood Prospect (the \"Acquisition\").\nThe Acquisition is consistent with the Company's stated strategy of identifying attractive drill-ready opportunities. The Company will participate in the drilling of the planned Holmwood-1 exploration well, which obtained planning consent during 2015 that will test the Holmwood Prospect's identified Portlandian and Corallian sandstone reservoirs and the same Jurassic section that tested oil from Kimmeridge limestones at Horse Hill.\n \nHighlights\n· The Acquisition brings the first Weald Basin licence interest to Union Jack`s expanding UK onshore portfolio\n· Holmwood-1 is a high impact exploration well with planning consent and is expected to be drilled late 2016/H1 2017\n· Europa estimates the unrisked gross mean prospective resources to be 5.6 million barrels with a geological chance of success (\"COS\") of 33% from the shallower sandstone reservoirs only\n· Net well cost expected to be £480,000 and will be financed from Union Jack's existing cash resources\n· The drill site is 12 kilometres immediately west and of similar stratigraphy to the Horse Hill-1 discovery\n· Further upside resource potential exists from the Jurassic Kimmeridge limestones\n· Presence of multiple payzones\n \nTerms of Acquisition\nUnion Jack is not paying any up-front cash consideration to earn a 7.5% economic interest in PEDL143.\nUnder the terms of the Acquisition Union Jack, has agreed to pay to Europa:\n· 15% of the costs o...