Union Jack Oil PLC (LON:UJO) has revealed the findings of a new assessment of the Biscathorpe project including an economic review which concludes that it is a financially robust project at current oil prices.
The 55% owned project is estimated to have a break-even full-cycle economics at US$18.07 per barrel.
It confirms the value of Westphalian, the project’s principal target, which is estimated to potentially be worth £55.6mln, meanwhile, the secondary Dinantian Carbonate target is described as a “commercially viable play” with 24.3mln barrels.
Significantly, Union Jack noted, drill targets are accessible via side-track from the previously suspended Biscathorpe-2 well.
"We are highly encouraged by the conclusions of this detailed review of data in respect of Biscathorpe, particularly given the attractive resource volumes and values associated with the Westphalian and Dinantian targets,” David Bramhill, Union Jack executive chairman said in a statement.
"The collective extensive technical information analysed over the past several months, combined with the APT conclusions on the likely presence of good quality oil have materially upgraded the resource potential and economic value of the project, upholding our opinion that PEDL253 remains one of the UK's largest onshore un-appraised conventional hydrocarbon licences.”