Business
Acquisition of UK Onshore Licence Portfolio
Acquisition of UK Onshore Licence Portfolio.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \nRNS Number : 9923S Union Jack Oil PLC 09 October 2017 \n\nMarket Abuse Regulation (MAR) Disclosure\nCertain information contained in this announcement would have been deemed inside information for the\npurposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.\n \n9 October 2017\n \nUNION JACK OIL PLC\n(AIM: UJO)\n \nAcquisition of Nautical Petroleum`s UK Onshore Hydrocarbon Licence Portfolio\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 the acquisition of the entire onshore hydrocarbon portfolio interest of Nautical Petroleum Limited, a wholly owned subsidiary of Cairn Energy PLC.\n \nThe portfolio comprises:\n \n· PEDL005(R) containing the producing Keddington oilfield (\"Keddington\") (10%)\n· PEDL339 containing the Louth Prospect (\"Louth\") with an estimated Stock Tank Oil Initially in Place (\"STOIIP\") of 5.5 million barrels (10%)\n· PEDL203 containing the Kirklington 3-Z well which will be production ready once remedial works to site equipment are carried out should a future production decision be made (16.67%)\n· PEDL118 containing the de-commissioned Dukes Wood oilfield where unproduced reserves are believed to exist (16.67%)\n \nThe consideration for the acquisition is £25,000 and Union Jack has assumed all further financial costs for the above assets with immediate effect. The cost of the transaction will be financed from existing cash resources.\n \nUnion Jack will receive Keddington production proceeds from the Economic Date of 1 September 2017.\n \nThe turnover attributable to the Company's existing 10% interest in PEDL005(R) in the year to 31 December 2016 was £22,119, generating a gross loss of £577. The acquisition of a further 10% interest in the licence would, on a pro rata basis, double turnover and the gross loss attributable to the interest. However, the enlarged 20% interest will produce a higher level of turnover, resulting in a gross profit for the remainder of the current financial year, given expected higher oil prices compared to the same period last year.\n \nThe Oil and Gas Authority has a...