The British petroleum regulator, the Oil and Gas Authority, has approved Union Jack Oil PLC’s (LON:UJO) proposed acquisition of a 20% stake in the Fiskerton Airfield project.
Fiskerton, located about seven miles from Lincoln, is estimated to have already produced some 440,000 barrels of a mapped 2.2mln barrels oil in place, though new operations are planned in order to boost operations.
READ: Union Jack Oil to acquire 20% stake in Fiskerton project from Egdon Resources
Following its acquisition, UJO is expected to cover the cost of a data reprocessing which is intended to identify additional production opportunities in the areas in and around Fiskerton.
The results of the anticipated seismic reprocessing work are expected to come during the first half of next year.
“Fiskerton has suffered from a marked lack of investment over the years,” UJO noted in the statement.
“Prior to acting on the initial interpretations of the 3D seismic re-processing, the joint venture partners plan to enhance the cash flows and profitability of Fiskerton by increasing production initially to between 30 and 40 barrels of oil per day via low cost well interventions.”
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Specifically, well work overs are planned for the producing FA-3 well and the presently shut-in FA-1 well – with the work including the installation of new new tubing and pumps.
The partners will consider options for new well drilling, subject to the findings of the seismic reprocessing.