Union Jack Oil plc has told DirectorsTalk that it has signed a Sale and Purchase Agreement with Europa Oil & Gas Limited to acquire a further 3.34% interest in PEDL180 and PEDL182. These licences contain the Broughton North Prospect situated in PEDL182 and the Wressle-1 discovery well from which first commercial oil is expected to flow at an estimated constrained rate of 500 barrels of oil per day gross in early 2017.
Union Jack currently holds an 8.33% interest in both licences. Following completion of the transaction the Company will hold an 11.67% interest.
The consideration for the acquisition is £600,000 for the additional 3.34% economic interest. The transaction is subject to Oil and Gas Authority approval.
The Consideration will be paid for from the £700,000 raised in the placing announced on 22 September 2016, the proceeds of which were to be used for the purpose of acquiring interests in near term development and production opportunities onshore UK.
The Company`s cash balance following payment of the Consideration is in excess of £2,000,000 and the Company remains fully funded for its other committed projects including the drill-ready Holmwood-1 and Biscathorpe-2 conventional wells and ongoing development costs for Wressle-1.
The interests held in both PEDL180 and PEDL182 post-transaction will be:
|
Egdon Resources U.K. Limited (Operator) |
25.00% |
|
Celtique Energie Petroleum Limited |
33.33% |
|
Europa Oil & Gas Limited |
30.00% |
|
Union Jack Oil plc |
11.67% |
David Bramhill, Executive Chairman of Union Jack, commented: “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 182.”
