9th Mar 2020 13:42
(Alliance News) - Union Jack Oil PLC on Monday said it has acquired an additional 35% economic interest in PEDL005, which contains the producing Keddington oilfield.
The onshore hydrocarbon production company said the additional interest was purchased from Terrain Energy Ltd for GBP200,000. Upon completion of this transaction Union Jack Oil holds a 55% economic interest in Keddington, with Egdon Resources PLC holding the remaining 45%.
Thus, Union Jack Oil's net contingent resource increased to 311,000 barrels of oil and net prospective resource increased to 349,250 barrels of oil. Keddington is currently producing 28 barrels of high-quality oil per day from Carboniferous age sandstone reservoirs, Union Jack Oil said.
"This acquisition is an inexpensive transaction and provides an immediate uplift in oil production, which will have a beneficial effect when consolidated into the production revenues generated from Fiskerton Airfield and the expected 'first oil' from the Wressle development later in the year," said Union Jack Oil Executive Chair David Bramhill.
"Keddington also contains major scope for expansion which could be achieved by drilling a relatively inexpensive development well from the existing Keddington site," added Bramhill.
Union Jack Oil shares were trading 11% lower in London on Monday at 0.12 pence each.
By Evelina Grecenko; [email protected]
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