Union Jack Oil gains approval for acquisition of Fiskerton interest

Production and exploration company Union Jack Oil has received approval from the Oil and Gas Authority for its previously announced acquisition of a 20% economic interest in licence EXL294 containing the producing Fiskerton Airfield Oilfield.

The agreement to acquire the interest in Fiskerton from Egdon Resources was signed earlier this month.

Fiskerton has a total cumulative production of around 440,000 barrels of oil from the most likely mapped oil in place of 2.2 million barrels.

Based on the company’s initial review of historic 3D seismic and drill logs, Fiskerton is estimated to have upside potential in the oil resources.

Union Jack is expected to fund a 3D seismic re-processing exercise to assist in re-mapping the area surrounding Fiskerton in an effort to identify additional production opportunities from the reservoir.

The company expects to have initial interpretations from the re-processing by the first half of next year.

Egdon Resources holds the operatorship of EXL294 with an 80% interest, while Union Jack owns the remaining 20% interest.

The joint venture (JV) partners are planning to enhance production initially to between 30 and 40 barrels of oil per day through well interventions even before acting on the initial interpretations of the 3D seismic re-processing.

Over the coming few months, workover operations are planned on both the producing FA-3 and the shut-in FA-1 wells.

Depending on the outcome of the results of the seismic re-processing programme, the JV partners intend to evaluate the potential to increase further production through in-fill drilling.