Business
West Newton Farm-in Agreement Signed
West Newton Farm-in Agreement Signed.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \nRNS Number : 2709G Union Jack Oil PLC 05 November 2018 \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 \n \n5 November 2018\n \nUnion Jack Oil plc\n(\"Union Jack\" or the \"Company\")\nFarm-in Agreement for a 16.665% Interest in PEDL183 Containing Major West Newton Gas Discovery\n \nThe Directors of Union Jack Oil plc (AIM: UJO) are pleased to announce that, further to entering into a Heads of Agreement as announced on 3 October 2018, the Company has now signed a farm-in agreement with Rathlin Energy (UK) Limited (\"Rathlin\"), a wholly owned subsidiary of Canadian registered Connaught Oil & Gas Ltd (\"Connaught\"), for a 16.665% licence interest in PEDL183 (the \"Farm-in\"). PEDL183 is located onshore UK in East Yorkshire and within the Western sector of the Southern Zechstein Basin and contains the significant West Newton A-1 gas discovery (Best Estimate Contingent Resource 189 Bcfe or 31.5 MMboe gross), where the drill-ready West Newton conventional appraisal well is planned to be drilled in Q1 2019.\nFarm-in Highlights\n· Acquiring a 16.665% interest in the large 176,000 acre PEDL183 licence containing the significant West Newton A-1 UK onshore gas discovery\n· Best Estimate Contingent Resources of 189 Bcf of gas equivalent or 31.5 million barrels of oil equivalent (gross) assigned to West Newton in a Competent Persons Report\n· West Newton A-1 gas discovery is on-trend with the prolific offshore Hewett gas complex\n· Proximity to existing gas pipelines and infrastructure\n· Drill-ready conventional appraisal well planned to be drilled in Q1 2019 to appraise the gas discovery\n· Appraisal well to be fully funded from existing cash resources\n· Compelling immediate and future economic value from a development of the gas discovery alone\n· Operator's NPV10% of US$247 million and 52.5% ROR for the gas discovery alone\n· Attractive acquisition metrics of less than US$0.30 per barrel of oil equivalent for the gas discovery alone\n· Considerable upside potential from the lower Cadeby...