Union Jack Oil PLC (LON:UJO) expects drilling to start for the Biscathorpe-2 appraisal well in the new year.
The company, in a statement, told investors that site construction is expected to complete this month, the drill rig will be mobilised in early January, and will be completed in mid-February.
It adds another first quarter catalyst for the junior UK oiler, which is also participating in the West Newton well project, in Yorkshire.
Union Jack highlighted that Biscathorpe-2 has an estimated 40% chance of success and 7.52mln to 142mln barrels of oil in place, or 1.84mln to 35.3mln barrels of prospective resources.
READ: Union Jack Oil acquires West Newton stake ahead of well programme
"We welcome the news of the impending drilling at Biscathorpe-2 and are pleased that the operator continues to progress activities according to schedule,” said David Bramhill, Union Jack executive chairman.
“Biscathorpe is one of the UK's largest onshore conventional oil prospects with mean prospective resources of 14 million barrels gross and a geological chance of success of 40% in which Union Jack has a meaningful 22% licence interest.”
Bramhill added: “The company`s economic modelling of the Biscathorpe Prospect highlights its attractiveness and shows a pre-drill value for the success case of circa £24 million net to Union Jack (using the industry standard net present value after tax at a 10% discount rate).
“Biscathorpe is one of Union Jack's near-term, high-impact projects and success here will be transformational for our company.
“We look forward to reporting on drilling activities at Biscathorpe over the coming months."