Business
Commencement of drilling operations
Commencement of drilling operations.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \nRNS Number : 0028P Union Jack Oil PLC 15 February 2016 \n\nUnion Jack Oil plc\n(AIM: UJO)\n \nCommencement of Drilling Operations at Laughton-1 Well PEDL209\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 the commencement of drilling operations at the conventional Laughton-1 well, situated within PEDL209, located along the eastern side of the Gainsborough Trough, a proven hydrocarbon province within the East Midlands.\nAs announced in January 2016, Union Jack agreed to acquire a 10% interest in the conventional interests only, within PEDL209 from Egdon Resources plc (\"Egdon\") in return for paying 16.67% of the cost of the Laughton-1 well.\nUnion Jack`s contribution towards the cost of the Laughton-1 well will be financed from the Company`s existing cash resources.\nThe Laughton-1 well was spudded 12 February. The well will target a structural trap at a depth of over 1,500 metres below ground level defined on reprocessed two-dimensional seismic data.\nThe Laughton Prospect has multiple conventional Carboniferous sandstone reservoir targets with the primary objective being the Silkstone Rock, an approximately 15 metre thick sandstone interval which is productive in the analogous Corringham Oilfield located five kilometres to the south east.\nTwo other potential reservoirs, the Kilburn Sandstone and the Wingfield Flags, will also be targeted by the well.\nThe consolidated mean Prospective Resource volume for the three targets, as calculated by Egdon is estimated to be 1.3 million barrels of oil.\nFor clarity, the operations at the Laughton wellsite will not, either now or in the future, involve the process of High Volume Hydraulic Fracturing for shale gas.\nThe interests in the Laughton Prospect and two other conventional prospects in PEDL209 following the recent approval by the Oil and Gas Authority of the transaction between Egdon and Union Jack are as follows:\n\n\n\n\nEgdon Resources U.K. Limited (operator)\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 Oil plc\n\n\n10%\n\n\n\n\n \nDavid Bramhill, Exe...