said an economic review of its Biscathorpe project located within Lincolnshire licence, PED253, has confirmed the project to be ‘financially robust with break-even economics at US$18.07 bbl’.
The group unveiled findings confirming the value of its principal target at Biscathorpe, Westphalian which is estimated to be potentially worth around £55.6m.
Meanwhile, Union’s secondary Dinantian Carbonate target was labelled as a ‘commercially viable play’ with 24.3m barrels.
Biscathorpe is located within the proven hydrocarbon fairway of the Humber Basin, on-trend with the Saltfleetby gasfield and Keddington oilfield.
Shares in Union Jack Oil were trading flat at 0.095p during Monday morning trading.
The company added that drill targets are accessible for a side-track from the previously suspended Biscathorpe-2 well.
"We are highly encouraged by the conclusions of this detailed review of data in respect of Biscathorpe, particularly given the attractive resource volumes and values associated with the Westphalian and Dinantian targets,” said David Bramhill, Executive Chairman of Union Jack Oil.
Union Jack believes that PEDL253 remains one of the UK's largest onshore un-appraised conventional hydrocarbon licences.
Bramhill said extensive technical analysis and APT conclusions confirming the likely presence of good quality oil had “materially upgraded” the resource potential and economic value of the project.
In early March, Union Jack Oil acquired an additional 35% stake in the producing Keddington oil field from Terrain Energy Limited taking its total economic interest in the asset to 55%
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The group highlighted ‘a relatively strong financial position’ in final results for the year ended 31 December 2019 and now awaits drilling at the highly anticipated Perseverance #1 well in the Bahamas.
The group said it will apply for a liquefied natural gas ("LNG") import licence for Ireland and has reached a number of confidentiality agreements with a global supplier of LNG and and an owner of LNG regasification vessels.