Further to the announcement of 27 September 2016, Union Jack Oil plc, an onshore oil and gas production and exploration company with a focus on production, exploration development and investment in the United Kingdom hydrocarbon sector, is pleased to announce that the Oil and Gas Authority has now approved the acquisition by Union Jack of a further 3.34% interest in PEDL180 and PEDL182 from Europa Oil & Gas Limited. 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 now holds an 11.67% interest in both licences following completion of this transaction.
The consideration for the acquisition was £600,000 for the additional 3.34% economic interest.
The Company's cash balance following payment of the Consideration is approximately £2,000,000 and the Company is 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 and remains debt free.
David Bramhill, Executive Chairman of Union Jack, commented:
'We are delighted to be able to confirm the increase in our position in Wressle, 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.'