Business
Wressle Additional Interest Completed
Wressle Additional Interest Completed.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \nRNS Number : 6229G Union Jack Oil PLC 31 May 2017 \n\nThe information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n \n31 May 2017\nUNION JACK OIL PLC\n(AIM: UJO)\n \nCompletion of Additional Interest in PEDL180 and PEDL182 Including the Wressle-1 Discovery and Broughton North Prospect, Onshore UK\n \nFurther to the announcement of 6 March 2017, Union Jack Oil plc (\"Union Jack\" or the \"Company\"), a UK-focused, onshore oil and gas production and exploration company is pleased to announce that the Oil and Gas Authority (\"OGA\") has now approved the acquisition by Union Jack of a further 3.33% interest in PEDL180 and PEDL182 from Celtique Energie Petroleum Limited. These licences contain the Wressle-1 discovery. \nUnion Jack now holds a 15% interest in both licences following completion of this transaction.\nThe consideration for the acquisition was £600,000 (\"Consideration\") for the additional 3.33% economic interest. The Consideration, comprising a £60,000 deposit paid to Celtique and a final payment of £540,000 was paid to Celtique's solicitors in March 2017, the final payment being held in escrow until completion of the transaction.\nThe Consideration was paid for from monies received in respect of the placing announced on 27 February 2017 of approximately £1.4 million before expenses, with funds raised being used to acquire further interests in assets contained within Union Jack's existing portfolio of near term production and drill-ready prospects. Further funds resulting from the placing remain to be invested.\nUnion Jack's current cash balance is in excess of £2,000,000 and the Company is fully funded for its other committed projects including the drill-ready Biscathorpe-2 and Holmwood-1 conventional wells with gross Mean Prospective Resources of 14MMbbl and 5.6MMbbl of oil respectively, both expected to be drilled during H2 2017. \nPEDL180 and PEDL182 contain the Wressle-1 discovery from which first commercial oil is expected to flow at an initial constrained rate of 500 barrels of oil per day, following planning approval. Details of the gross and net to Union Jack 2P reserves and...