Business
Biscathorpe Acquisition Update
Biscathorpe Acquisition Update.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \nRNS Number : 1972I Union Jack Oil PLC 20 March 2018 \n\n \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 \n20 March 2018\n \nUnion Jack Oil plc\n(\"Union Jack\" or the \"Company\")\nFarm-in for an Additional 10% Interest in the Drill-Ready Biscathorpe Prospect\n \nFurther to the announcement of 5 March 2017, the Directors of Union Jack, a UK onshore focused hydrocarbon production, development and exploration company (AIM: UJO), are pleased to announce that the Company has signed a Farm-in Agreement for a further 10% licence interest in PEDL253 increasing the Company's economic interest to 22%. \nHighlights\n· Biscathorpe Farm-in Agreement signed, increasing Union Jack's licence interest to 22%, subject to OGA approval\n· The drill-ready conventional Biscathorpe-2 well is scheduled to be drilled around mid-year 2018\n· Biscathorpe represents a highly attractive, risk-adjusted investment opportunity for Union Jack with gross mean prospective oil resources of 14 million barrels and a 40% geological Chance of Success\n· Biscathorpe-2 represents the first project with Union Jack's commercial partner, Humber Oil & Gas Limited (\"Humber\"), where both parties have acquired a 10% interest\nDavid Bramhill, Executive Chairman of Union Jack, commented:\n\"We are pleased to be able to further increase our interest in the drill-ready conventional Biscathorpe-2 well to 22% that is planned to be drilled around mid-year 2018. Biscathorpe-2 holds considerable upside potential for our Company with gross prospective oil resources of 14 million barrels and a high geological Chance of Success of 40%. The oil logged in BP's 1987 well, Biscathorpe-1, has significantly de-risked the Biscathorpe Prospect.\n\"Union Jack's proprietary economic modelling of the Biscathorpe Prospect highlights its attractiveness and shows a pre-drill value for the success case of circa £24 million net to Union Jack (using the industry standard net present value after tax at a 10% discount rate). This is significantly in excess of the approximate £1 million drilling cost we will be incurring, for which we...