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Union Jack Oil doubles stake in Keddington in deal to acquire Cairn’s onshore UK assets

"The opportunity for Union Jack to acquire Cairn Energy`s UK onshore hydrocarbon portfolio which comprise assets we hold in high regard, at nominal cost is an excellent result”
onshore drilling operation
UJO acquires stakes in the Keddington, Louth, Kirklington, and Dukes Wood assets

Union Jack Oil PLC (LON:UJO) has stuck a deal to acquire the onshore UK assets of Nautical Petroleum, a Cairn Energy PLC (LON:CNE) subsidiary.

It delivers stakes in a number of onshore oil projects – including 10% of the Keddington oil field, 10% of the Louth prospect, 16.67% of the Kirklington oil project and 16.67% of the historic Dukes Wood oilfield. All the assets are operated by UJO partner Egdon Energy Ltd (LON:EDR).

READ: Union Jack Oil sees bags of opportunity onshore in the UK

The AIM-quoted explorer is paying just £25,000 to acquire the asset portfolio from the Cairn subsidiary, and it is due to receive production proceeds from Keddington from an effective date of September 1.

UJO already has a 10% stake in Keddington which in the last financial year generated £22,119 of revenue for the group.

WATCH: Union Jack Oil sizing up new projects as they launch into 'particularly busy' second half

"The opportunity for Union Jack to acquire Cairn Energy`s UK onshore hydrocarbon portfolio which comprise assets we hold in high regard, at nominal cost is an excellent result,” said David Bramhill, UJO chairman.

He added: “The assets acquired are all located in Union Jack`s core area of interest in the East Midlands which include additional interests in the producing Keddington oilfield and the drill-ready prospects, subject to planning, at Louth and North Somercotes.

“This acquisition is a perfect fit to the company`s existing portfolio at minimum cost while allowing Union Jack to focus on growing its production and exploration business."

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