(AIM: UJO)
Acquisition of Additional Interest in PEDL180 and PEDL182 Including the Wressle-1 Discovery and
Broughton North Prospect, Onshore
The consideration for the acquisition is
The Consideration will be paid for from monies received in respect of the placing announced on
These licences contain the Wressle-1 oil discovery well from which first commercial oil is expected to flow at an initial constrained rate of 500 barrels of oil a day gross. Details of the gross and net to Union Jack 2P reserves and 2C resources pre and post- acquisition are set out in the tables below. Substantial contingent resources have also been confirmed in the Penistone Flags reservoir at Wressle that are over and above the oil and gas reserves identified in the Ashover Grit and Wingfield Flags reservoirs. In addition, PEDL182 also contains the promising Broughton North Prospect.
The Penistone Flags reservoir is oil bearing in the Wressle-1 discovery well and also in the Broughton-B1 exploration well, drilled by BP in 1984 that tested oil and is located approximately two kilometres to the north west of Wressle. The gross thickness of the Penistone Flags reservoir sand is 26 metres in the Broughton-1 exploration well and 29 metres in Wressle-1 discovery well and is believed to be laterally extensive.
The Company is currently funded for its existing commitments, which include the drilling of the Biscathorpe-2 and Holmwood-1 conventional exploration wells with gross Mean Prospective Resources of 14MMbbl and 5.6MMbbl of oil respectively.
Net Volumes of hydrocarbons attributable to Union Jack pre-acquisition
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Gross
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Net Volumes Pre-acquisition
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Oil MMstb |
Gas bcf |
Oil Equiv MMboe |
Oil MMstb |
Gas bcf |
Oil Equiv MMboe |
2P Ashover Grit and Wingfield Flags |
0.62 |
0.20 |
0.65 |
0.07 |
0.02 |
0.07 |
2C Penistone Flags |
1.53 |
2.00 |
1.86 |
0.18 |
0.24 |
0.22 |
Broughton North Mean Unrisked Prospective Resources |
0.51 |
0.51 |
0.60 |
0.06 |
0.06 |
0.07 |
Gas converted to oil equivalent using 6 Bscf/MMboe conversion added to oil volume
Net Volumes of hydrocarbons attributable to Union Jack post-acquisition
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Gross
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Net Volumes Post-acquisition
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||||
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Oil MMstb |
Gas bcf |
Oil Equiv MMboe |
Oil MMstb |
Gas bcf |
Oil Equiv MMboe |
2P Ashover Grit and Wingfield Flags |
0.62 |
0.20 |
0.65 |
0.09 |
0.03 |
0.10 |
2C Penistone Flags |
1.53 |
2.00 |
1.86 |
0.23 |
0.30 |
0.28 |
Broughton North Mean Unrisked Prospective Resources |
0.51 |
0.51 |
0.60 |
0.08 |
0.08 |
0.09 |
Gas converted to oil equivalent using 6 Bscf/MMboe conversion added to oil volume
The interests held in both PEDL180 and PEDL182 post-transaction will be:
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25.00% |
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30.00% |
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30.00% * |
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15.00% |
*On
When in production, first commercial oil from Wressle-1 is expected to flow at an estimated constrained rate of 500 barrels of oil per day gross converting the Company`s status from a junior explorer into a fully-fledged oil producer. At
The future looks bright for Union Jack, holding a nicely balanced portfolio of production, development, appraisal and exploration assets"
The Wressle-1 Discovery
The Wressle-1 oil and gas discovery is located within PEDL180 and PEDL182, in
On Extended Well Test the well flowed an aggregate of 710 barrels of oil equivalent per day over three horizons, the Ashover Grit, Wingfield Flags and the Penistone Flags.
The summary details of a Competent Persons Report ("CPR") compiled by
The oil and gas Reserves and Contingent Resources identified by the CPR in aggregate exceed the Operator`s original pre-drill estimates.
Gross P Mean Discovered Oil Initially in Place is 14.18 million stock tank barrels in aggregate across three reservoir sands, the Ashover Grit, Wingfield Flags and Penistone Flags, of which 2.15 million gross stock tank barrels of oil are classified as discovered (2P+2C).
Gross 2P oil Reserves of 0.62 million stock tank barrels of oil in aggregate identified across two reservoir sands, the Ashover Grit and the Wingfield Flags that form the basis of the initial development plan which currently excludes development of the material Penistone Flags reservoir sands.
Substantial Contingent Resources have also been confirmed in the Penistone Flags reservoir that are over and above the oil and gas Reserves identified in the Ashover Grit and Wingfield Flags reservoirs.
The Penistone Flags reservoir has gross 2C Contingent Resources of 1.53 million stock barrels of oil and 2.0 billion standard cubic feet of gas.
The conversion of the Penistone Flags 2C Contingent Resources into 2P Reserves, in full or in part, is expected to occur following receipt of necessary development approvals and commencing production at the Wressle development and once a subsequent development plan has been identified for the
Development options and production planning for the Penistone Flags reservoir are expected to progress following commissioning of the initial Wressle development and will include monetisation of the produced gas by pipeline or electricity generation which will be sold to the National Grid.
The Broughton North Prospect
The Broughton North Prospect is located in a fault block immediately to the north west of the Wressle structure within PEDL182 and ERCE has attributed a high geological chance of success of 40% to 49% to the prospect.
Gross unrisked Mean Oil Initially in Place for the Broughton North Prospect is an undiscovered 3.43 million stock tank barrels of oil in aggregate across two reservoir sands, the Ashover Grit and Penistone Flags with Mean Prospective Resources of 0.51 million stock tank barrels of oil plus 0.51 billion standard cubic feet of gas.
Mapping of the Broughton North Prospect also benefits from the same high quality 3D data set as was used to identify the Wressle-1 oil and gas discovery.
Funding for an exploration well on the prospect will be assisted by the significant net cash flows expected to be generated from commercial production from the initial Wressle development.
For further information, please contact:
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+44 (0) 77871 60682 |
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Shore Capital |
+44 (0) 20 7408 4090 |
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SP Angel |
+44 (0) 20 3470 0470 |
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+44 (0) 7768 537 739
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In accordance with the "AIM Rules - Note for Mining and Oil and Gas Companies", the information contained within the announcement has been reviewed and signed off by
ERCE have carried out their work using the
ERCE`s summary of the findings of their CPR including the definition of the terms used in this announcement can be found on the Company`s website www.unionjackoil.com.
This information is provided by RNS