UK-based Union Jack Oil has acquired the onshore hydrocarbon portfolio interest of Cairn Energy’s subsidiary Nautical Petroleum.
The portfolio comprises a 10% stake in the Keddington oilfield, 10% in the Louth Prospect, 16.7% in the Kirklington oil project, and 16.7% in the Dukes Wood oilfield.
Through the acquisition, Union Jack has doubled its interest in the Keddington oilfield, where it already owns a 10% stake.
Towards the acquisition of the portfolio, the company made a payment of £25,000 to Nautical.
Union Jack Oil executive chairman David Bramhill said: “The opportunity for Union Jack to acquire Cairn Energy`s UK onshore hydrocarbon portfolio, which comprise assets we hold in high regard at nominal cost, is an excellent result.
“The assets acquired are all located in Union Jack’s core area of interest in the East Midlands, which include additional interests in the producing Keddington oilfield and the drill-ready prospects, subject to planning, at Louth and North Somercotes.
“This acquisition is a perfect fit to the company’s existing portfolio at minimum cost while allowing Union Jack to focus on growing its production and exploration business.”
The additional interest in the Keddington field is expected to ensure a higher level of turnover, leading to a gross profit for the rest of the current financial year.
Studies to evaluate completion and enhanced recovery options at the Kirklington project are currently in progress.
Studies are also ongoing at the Dukes Wood oilfield to identify reservoir zones containing previously undrained oil resources.
The transfer of the licence interests is conditional upon fulfilment of the completion conditions.