27th Sep 2016 09:19
LONDON (Alliance News) - Union Jack Oil PLC on Tuesday said it has bought a further 3.3% interest in the PEDL180 and PEDL182 licences in Lincolnshire from Europa Oil & Gas Ltd for GBP600,000.
These licences contain the Broughton North prospect in PEDL182 and the Wressle-1 discovery well located in both licences, from which first commercial oil is expected to flow at an estimated constrained rate of 500 barrels of oil per day in early 2017.
Union Jack already held a 8.3% stake in the licences, meaning the latest purchase takes its holding to 11.7%.
The company will fund the acquisition from the placing it held last week, through which it raised GBP700,000.
"We are delighted to be able to increase our position in Wressle as it is an attractive near-term production asset," Executive Chairman David Bramhill said in a statement, adding that Broughton North is "promising".
"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," he added.
Shares in Union Jack were trading up 1.4% at 0.183 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
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