29th Aug 2018 12:37
LONDON (Alliance News) - Shares in Union Jack Oil PLC rose Wednesday as the company said it plans to start drilling the Biscathorpe-2 well in either October or November this year.
Union Jack shares were 13% higher on Wednesday at 0.10 pence each.
Site construction at Biscathorpe in Lincolnshire, England is expected to be finished in September. The well is located on PEDL253, a licence in which Union Jack has a 22% stake.
The well will target the Biscathorpe-1 discovery made by BP PLC in 1987, which has estimated mean prospective resources of 14 million barrels of oil, 3.1 million net to Union Jack.
The company also emphasised the well will use conventional techniques, with no gracking to be deployed at any stage.
Executive Chairman David Bramhill said: "The company's economic modelling of the Biscathorpe prospect highlights its attractiveness and shows a pre-drill value for the success case of circa GBP24 million net to Union Jack.
"Six months on from entering into a commercial partnership with Humber Oil & Gas Ltd we have worked together to identify and acquire jointly, several licence interests in what we consider to be potentially high yielding projects. We are optimistic about drilling Biscathorpe-2, which represents the first well drilled in conjunction with Humber."
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