Union Jack acquires UK onshore license shares from Terrain Energy

Union Jack Oil plc has acquired from Terrain Energy Ltd. an additional 35% economic interest in PEDL005(R) license in Lincolnshire, UK, containing Keddington oil field. The deal also includes a 15% interest in PEDL339 which includes the contiguous Louth prospect and the entire North Somercotes gas prospect.

Keddington currently produces about 28 b/d from Carboniferous age sandstone reservoirs along the highly prospective East Barkwith Ridge, an east-west structural high on the southern margin of the Humber basin. Geological and geophysical studies indicate that potentially significant resources remain unswept with 567,000 bbl gross remaining mean contingent resource (311,000 bbl net to Union Jack). Egdon Resources, as operator, is finalizing the assessment of potential in-fill drilling locations at Keddington with a view to targeting a side-track drilling location.

The Louth prospect extends from PEDL005(R) with 600,000 bbl gross mean prospective resource. Additional prospective resources, both for oil and gas also exist over the license areas and includes the North Somercotes prospect, which is estimated to contain 11 bcf gross mean prospective resources with a 25% geological chance of success.

Following the acquisition—subject to approval by the Oil & Gas Authority—Union Jack will hold a 55% economic interest in Keddington and 35% interest in PEDL339. Egdon Resources, as operator, will hold the remaining interest in both.