07:00 Tue 20 Mar 2018
Union Jack Oil PLC - Biscathorpe Acquisition Update
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Certain 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
("Union Jack" or the "Company")
Farm-in for an Additional 10% Interest in the Drill-Ready Biscathorpe Prospect
Further to the announcement of
Highlights
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· The drill-ready conventional Biscathorpe-2 well is scheduled to be drilled around mid-year 2018
· 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
· Biscathorpe-2 represents the first project with Union Jack's commercial partner,
"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.
"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
"We look forward to the drilling of the Biscathorpe-2 well this year. This well, together with the Company's wider portfolio, and the newly-formed commercial partnership with Humber, puts Union Jack in a strong position to deliver growth in reserves, production and asset value, while adhering to our principles of strict financial and technical disciplines."
Farm-in Details
PEDL253 is located in the
Pursuant to the Farm-in, Union Jack and Humber will each acquire 6% of
The Farm-in is subject to
PEDL253 is within the proven hydrocarbon fairway of the
The Biscathorpe Prospect is a well-defined four-way dip closed structure mapped from recently re-processed 3D seismic data..
The Biscathorpe-2 conventional well will be located in a direction towards a potentially thicker sand development within the structural closure of the trap. The Biscathorpe-2 well has received full sanction from the PEDL253 partnership. The current Mean Estimate Prospective Resource is 14 million barrels of oil (gross) with a geological Chance of Success of 40%.
During 2017, Union Jack commissioned an independent review of the Biscathorpe 3D seismic survey which was conducted by geophysical consultants
The proposed Biscathorpe-2 well will involve conventional drilling for oil trapped in a sandstone reservoir and, for clarity, the operations at the site will neither now nor in the future involve the process of hydraulic "fracking" for shale gas or shale-oil.
Union Jack and Humber recently signed a Memorandum of Understanding ("MOU") to progress a
The farm-in for a combined 20% economic interest in PEDL253 by both Union Jack and Humber represents the first such commercial collaboration between both parties under the MOU.
Resulting Licence Interests in PEDL253
Following the Farm-in by Union Jack and Humber, and subject to OGA approval, the resulting economic interests in PEDL253 will be:
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40.80% |
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27.20% |
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22.00% |
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10.00% |
For further information please contact:
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+44 (0)7787 160 682 |
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+44 (0)20 3470 0470 |
Nominated Adviser |
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