The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
(AIM: UJO)
Completion of Additional Interest in PEDL180 and PEDL182 Including the Wressle-1 Discovery and Broughton North Prospect, Onshore
Further to the announcement of
Union Jack now holds a 15% interest in both licences following completion of this transaction.
The consideration for the acquisition was
The Consideration was paid for from monies received in respect of the placing announced on
Union Jack's current cash balance is in excess of
PEDL180 and PEDL182 contain the Wressle-1 discovery from which first commercial oil is expected to flow at an initial constrained rate of 500 barrels of oil per day, following planning approval. Details of the gross and net to Union Jack 2P reserves and 2C resources post-acquisition are set out in the table 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.
Net Volumes of hydrocarbons attributable to Union Jack post-acquisition
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GROSS VOLUMES |
NET VOLUMES ATTRIBUTABLE TO UNION JACK |
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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 are:
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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
At the current oil price, management expects the net cash flow generated from Wressle attributable to Union Jack to be significant. The Board believes that production at Wressle will generate excess cash after accounting for the Company's on-going working capital obligations.
The acquisition of an increased stake in Wressle is consistent with our strategy of building a balanced portfolio of production, development, appraisal and exploration assets."
For further information please contact the following:
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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 announcement contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. While the directors believe the expectation reflected within this announcement to be reasonable in light of the information available up to the time of approval of this announcement, the actual outcome may be materially different owing to factors either beyond the Company's control or otherwise within the Company's control, for example, owing to a change of plan or strategy.
Accordingly, no reliance may be placed on the forward-looking statements.
This information is provided by RNS