Union Jack Oil completes acquisition of additional stake in Wressle field, UK
Union Jack Oil has announced that Oil and Gas Authority has approved its acquisition of an additional 3.34% interest in PEDL180 and PEDL182 from Europa Oil & Gas.
These licences include the Broughton North Prospect situated in PEDL182 and the Wressle-1 discovery well.
The site is expected to begin production at a constrained rate of 500 barrels of oil per day from early 2017.
After completion of this transaction, Union Jack Oil now holds 11.67% interest in both licences.
The remaining interests are owned by Egdon Resources UK (25%), Celtique Energie Petroleum (33.33%) and Europa Oil & Gas (30%).
Egdon Resources UK is the operator of PEDL180 and PEDL182.
Union Jack Oil paid a consideration of £600,000 to acquire this further 3.34% economic interest.
The company claimed to still have a cash balance of nearly £2m with adequate funding for its other projects.
Union Jack Oil executive chairman David Bramhill said: “We are delighted to be able to confirm the increase in our position in Wressle, an attractive near-term production asset where first commercial oil is expected to flow at an estimated constrained rate of 500 barrels of oil per day gross in early 2017, as well as providing Union Jack with further exposure to the promising Broughton North Prospect.
“The future looks bright for this project, given the early 2017 production target and the additional potential for multi-development opportunities we see within PEDL180 and 182.”
The Wressle-1 oil and gas location is situated within PEDL180 and PEDL182 in Lincolnshire, on the western margin of the Humber Basin.