Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the
purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
(AIM: UJO)
Acquisition of Nautical Petroleum`s
The portfolio comprises:
· PEDL005(R) containing the producing Keddington oilfield ("Keddington") (10%)
· PEDL339 containing the Louth Prospect ("Louth") with an estimated Stock Tank Oil Initially in Place ("STOIIP") of 5.5 million barrels (10%)
· PEDL203 containing the Kirklington 3-Z well which will be production ready once remedial works to site equipment are carried out should a future production decision be made (16.67%)
· PEDL118 containing the de-commissioned
The consideration for the acquisition is
Union Jack will receive Keddington production proceeds from the Economic Date of
The turnover attributable to the Company's existing 10% interest in PEDL005(R) in the year to
The licences are all operated by Egdon Resources plc ("the Operator").
PEDL005(R) - Keddington
As a result of this transaction Union Jack who previously held a 10% interest in PEDL005(R) now holds a 20% interest in PEDL005(R) and will receive 20% of all production revenues from Keddington, currently producing approximately 30 barrels of oil per day from Carboniferous age sandstone reservoirs from the Keddington 3-Z well.
Recent mapping of the 3-D seismic over Keddington has indicated areas of potentially unswept oil within structural closure. Comprehensive geophysical and geological evaluation is ongoing to better define the greater Keddington area.
Keddington is located along the highly prospective
Additionally, there is also the potential for stratigraphic trapping at Biscathorpe, which, if present, could increase the expected gross Prospective Resources to 41 million barrels of oil.
PEDL005(R) also contains a portion of Louth and the entire North Somercotes gas prospect. The latter is estimated by the Operator to contain gross mean Prospective Resources of 11 billion cubic feet of gas with a COS of 25%.
The interests held in PEDL005(R) following the transaction are as follow:
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Keddington Oilfield |
PEDL005(R) Ex. Keddington |
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45% |
65% |
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35% |
15% |
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20% |
20% |
PEDL339 - Louth
Louth is located immediately west of, and along trend from, Keddington and extends into PEDL005(R). As a result of this transaction, Union Jack now holds a 20% interest in PEDL339. 10% was previously acquired at no cost from the Operator due to its award to the existing Joint Venture group in the
Louth is defined on reprocessed 3-D seismic data and is estimated by the Operator to contain STOIIP of 5.5 million barrels of oil and gross mean Prospective Resources of 1.4 million barrels of oil with an attractive COS of 37%.
The interests held in PEDL339 following the transaction are as follow:
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65% |
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20% |
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15% |
PEDL203 - Kirklington
The currently shut-in Kirklington oilfield is located in
Kirklington was originally discovered by BP in 1985 and produced oil from two Carboniferous reservoirs, the Crawshaw sandstone and the Chatsworth Grit.
The Kirklington-3 and the Kirklington 3-Z sidetrack wells were drilled by the Operator in 2010 and produced from only one of nine potential pay zones until mid-2013. The STOIIP is believed to be approximately 4.23 million barrels of oil with circa 1% of this figure having been produced to date.
The 3-Z well is currently shut in and production facilities have been preserved as part of a care and maintenance programme and will be production ready once remedial work has been conducted to site equipment should a future production decision be made.
Various studies are ongoing to evaluate completion and enhanced recovery options, both mechanical and chemical which could be applied to the unswept oil reservoirs present to enable further production from Kirklington.
The interests held in PEDL203 following this transaction are as follow:
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55.55% |
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27.78% |
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16.67% |
PEDL118 -
The currently de-commissioned historic
The current Operator drilled the Dukes Wood-1 well in 2010 and encountered three reservoir zones, the Ashover Grit, Crawshaw sandstone and the Loxley Edge Rock, all of which were flow tested.
Studies are ongoing to identify reservoir zones containing previously undrained oil resources.
The interests held in PEDL118 following this transaction are as follow:
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55.55% |
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27.78% |
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16.67% |
"The opportunity for Union Jack to acquire Cairn Energy`s
The assets acquired are all located in Union Jack`s core area of interest in the
This acquisition is a perfect fit to the Company`s existing portfolio at minimum cost while allowing Union Jack to focus on growing its production and exploration business."
For further information, please contact:
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+44 (0)7787 160 682 |
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+44 (0)20 3470 0470 |
Nominated Adviser and Joint Broker |
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+44 (0)20 3621 4120 |
Joint Broker |
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In accordance with the "AIM Rules - Note for Mining and Oil and Gas Companies", the information contained within this announcement has been reviewed and signed off by
This information is provided by RNS