Union Jack Oil PLC agreed to acquire a further 15% economic interest in onshore UK license PEDL253 containing the Biscathorpe project from Humber Oil & Gas Ltd.
PEDL253 lies within the proven hydrocarbon fairway of Humber basin, on-trend with Keddington oilfield (Union Jack 55%) which produces oil from a Carboniferous Westphalian aged reservoir.
An oil bearing Dinantian Carbonate reservoir of 57 m has been confirmed by independent petrophysical analysis and oil samples from cuttings. The Dinantian oil play has gross Mean STOIIP of 24.3 million bbl of oil with an upside of case of 36 million bbl of oil. Evidence for a thickened Westphalian sandstone interval is apparent. Gross mean prospective resources associated with the Westphalian target total 3.95 million bbl of oil an upside case of 6.69 million bbl of oil.
A planning application for side-track drilling, testing, and long-term production is expected to be submitted in February.
Union Jack will acquire the 15% interest for a cash consideration of £500,000 that will be paid on receiving UK Oil and Gas Authority (OGA) approval for the transfer of interest and the lodging of associated documents to allow transfer.
A contingent consideration of £500,000 will become payable to Humber on receipt of planning approval from Lincolnshire County Council for the side-track drilling operation, associated testing, and the approval to undertake long-term production of hydrocarbons in a successful drilling case.
Upon completion of the acquisition, the interests held in PEDL253 will be as follows: Egdon Resources UK Ltd. (operator) 35.8%; Union Jack Oil PLC 45.0%; and Montrose Industries Ltd. 19.2%.