Business
Acquisition of Interest in PEDL182
Acquisition of Interest in PEDL182.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \nRNS Number : 9360A Union Jack Oil PLC 13 June 2016 \n\n \nUNION JACK OIL PLC\n(AIM: UJO)\nAcquisition of Interest in PEDL182 incorporating the Broughton North 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 hydrocarbon sector, is pleased to announce it has reached agreement with Egdon Resources plc (\"Egdon\" or the \"Operator\") to acquire an 8.33% economic interest in PEDL182, located in Lincolnshire on the western margin on the Humber Basin containing the Broughton North Prospect.\nHighlights\n· The acquisition affiliates two prospective licence areas, already demonstrated by the Wressle-1 oil and gas discovery\n· Broughton North Prospect mapped on high quality 3D seismic data\n· The Wressle-1 oil and gas discovery has significantly reduced the geological risk over licences PEDL180 and PEDL182\n· The Wressle Field is deemed by the Operator to extend into the adjacent licence PEDL182\n· Under an earlier agreement Union Jack is entitled to an 8.33% interest in the Wressle part of PEDL182 at no cost\n· The Broughton North well, when drilled will be funded by Union Jack`s share of production from the Wressle Field\n \nUnder the terms of the agreement Union Jack will pay to Egdon 12.495% of the cost of any planned Broughton North well and associated agreed back costs of £64,000.\nThe back costs relate primarily to the acquisition of high quality 3D seismic acquired during 2012 over the Broughton North Prospect and other areas within PEDL182. This exercise has provided detailed structural data and enabled a bottom-hole target location in respect of the Broughton North Prospect.\nUnion Jack`s share of funding of the Broughton North well will be paid for by hydrocarbon sales from the Wressle-1 commercial production, which is expected to commence during Q4 2016.\nThe discovery at Wressle has significantly reduced the geological risk over PEDL182 and additionally, in respect of Union Jack this transaction will benefit the Company going forward in any \"add on\" development decisions which ...