Union Jack Oil PLC (LON:UJO) saw its shares jump on Wednesday after the firm said it expects to complete site works in September for the planned Biscathorpe-2 conventional well where drilling will follow in October or November.
The company told investors that tenders for all materials, services and a drilling rig are being updated to the anticipated timeline.
In the statement, the company emphasised that planning and environment agency permits are in place, and, the project doesn’t involve fracking for shale gas or shale oil.
"Biscathorpe is one of the UK's largest onshore conventional oil prospects with mean prospective resources of 3.1mln barrels net to Union Jack and a high geological chance of success of 40%,” said David Bramhill, Union Jack executive chairman.
"The company`s economic modelling of the Biscathorpe prospect highlights its attractiveness and shows a pre-drill value for the success case of circa £24mln net to Union Jack (using the industry standard net present value after tax at a 10% discount rate).”
Bramhill highlighted that Biscathorpe will be the first well to be drilled alongside investment partner Humber Oil & Gas.
The partnership began six months ago and since then the companies have jointly worked together to identify and acquire jointly, several licence interests.
The Union Jack boss added: "We would also like to take this opportunity to emphasise that Biscathorpe-2 is a conventional well and will not, either now or in the future, involve any fracking.
"Biscathorpe is material to Union Jack and has the ability to transform our Company into a significant UK oil producer.
“We are delighted that guidance on the drilling timetable has been issued and we look forward to keeping the market apprised of further developments."
In early afternoon trading, Union Jack shares were 10.8% higher at 0.1025p.
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