Union Jack Oil to acquire additional 3.34% interest in PEDL180 and PEDL182

UK-based oil and gas production and exploration company Union Jack Oil has signed a sale and purchase agreement with Europa Oil & Gas to acquire an additional 3.34% interest in PEDL180 and PEDL182.

The licenses include Broughton North Prospect located in PEDL182 and the Wressle-1 discovery well, from which the company expects first commercial oil, estimated to flow at a constrained rate of 500 barrels of oil per day gross by next year.

Union Jack executive chairman David Bramhill said: “We are delighted to be able to increase our position in Wressle as it is 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 82.”

The UK-based oil company currently owns 8.33% in both licenses, and upon completion of the deal, the company interest will increase to 11.67%.

Union Jack will be paying £600,000 for the additional 3.34% interest. The transaction is subject to Oil and Gas Authority approval.

The company will be paying for the acquisition from its £700,000, proceeds of which will be used for the purpose of acquiring interests in near-term development and production opportunities onshore UK.

After the payment, Union Jack will have an excess of £2 million that will be used for the other committed projects, including the drill-ready Holmwood-1 and Biscathorpe-2 conventional wells and ongoing development costs for Wressle-1.