Business
Acquisition of Interest in PEDL209
Acquisition of Interest in PEDL209.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \nRNS Number : 9120M Union Jack Oil PLC 26 January 2016 \n\nUnion Jack Oil plc\n(AIM: UJO)\nAcquisition of Interest in PEDL209 and Laughton Prospect\n \nUnion Jack Oil plc (\"Union Jack\" or the \"Company\"), an onshore oil and gas production and exploration company with a focus on production, drilling, development and investment opportunities in the United Kingdom hydrocarbon sector is pleased to announce that it has entered into an agreement with Egdon Resources plc (\"Egdon\" or the \"Operator\"), to farm-in to the conventional prospects only of PEDL209 containing the Laughton Prospect (the \"Agreement\").\nPEDL209 is located along the eastern side of the Gainsborough Trough, a proven hydrocarbon province within the East Midlands.\nUnder the terms of the Agreement, Union Jack will pay 16.67% of the cost of the Laughton-1 well, scheduled to be drilled during February 2016, to earn a 10% economic interest the conventional resources in PEDL209.\nUnion Jack's contribution towards the cost of the Laughton-1 well will be financed from the Company's existing cash resources.\nThis transaction remains subject to approval from the Oil and Gas Authority.\nFollowing approval of the transaction the interested parties in the Laughton-1 well will be as follows:\n \n\n\n\n\nEgdon Resources U.K. Limited\n\n\n50%\n\n\n\n\nBlackland Park Exploration Limited\n\n\n28%\n\n\n\n\nStelinmatvic Industries Limited\n\n\n12%\n\n\n\n\nUnion Jack\n\n\n10%\n\n\n\n\n \nLaughton Prospect\nThe Laughton Prospect is a fault and dip closed structure mapped on a 2D seismic grid. The carboniferous Westphalian and Namurian contains numerous sandstones which are proven reservoirs in the oilfields within the Gainsborough Trough.\nNumerous potential multiple stacked reservoirs will be targeted by the Laughton-1 conventional exploration well, which according to the resource estimates provided by the Operator could contain mean recoverable resources of 1.3 million barrels of oil.\nIn addition to the Laughton Prospect, PEDL209 also has two further leads all of which are similar dip and fault closed structures.\nDavid Bramhill, Executive Chairman of Union Jack Oil plc commented:\n\"We are pleased to be able to participate in the drilling of the Laughton-1 well which has the potential for discoveries in several stacked reservoirs.\nThe Company ...