Union Jack Oil PLC Wressle Additional Interest Completed (6229G)
May 31 2017 - 2:00AM
UK Regulatory
TIDMUJO TIDMUJOP
RNS Number : 6229G
Union Jack Oil PLC
31 May 2017
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
31 May 2017
UNION JACK OIL PLC
(AIM: UJO)
Completion of Additional Interest in PEDL180 and PEDL182
Including the Wressle-1 Discovery and Broughton North Prospect,
Onshore UK
Further to the announcement of 6 March 2017, Union Jack Oil plc
("Union Jack" or the "Company"), a UK-focused, onshore oil and gas
production and exploration company is pleased to announce that the
Oil and Gas Authority ("OGA") has now approved the acquisition by
Union Jack of a further 3.33% interest in PEDL180 and PEDL182 from
Celtique Energie Petroleum Limited. These licences contain the
Wressle-1 discovery.
Union Jack now holds a 15% interest in both licences following
completion of this transaction.
The consideration for the acquisition was GBP600,000
("Consideration") for the additional 3.33% economic interest. The
Consideration, comprising a GBP60,000 deposit paid to Celtique and
a final payment of GBP540,000 was paid to Celtique's solicitors in
March 2017, the final payment being held in escrow until completion
of the transaction.
The Consideration was paid for from monies received in respect
of the placing announced on 27 February 2017 of approximately
GBP1.4 million before expenses, with funds raised being used to
acquire further interests in assets contained within Union Jack's
existing portfolio of near term production and drill-ready
prospects. Further funds resulting from the placing remain to be
invested.
Union Jack's current cash balance is in excess of GBP2,000,000
and the Company is fully funded for its other committed projects
including the drill-ready Biscathorpe-2 and Holmwood-1 conventional
wells with gross Mean Prospective Resources of 14MMbbl and 5.6MMbbl
of oil respectively, both expected to be drilled during H2
2017.
PEDL180 and PEDL182 contain the Wressle-1 discovery from which
first commercial oil is expected to flow at an initial constrained
rate of 500 barrels of oil per day, following planning approval.
Details of the gross and net to Union Jack 2P reserves and 2C
resources post-acquisition are set out in the table below.
Substantial contingent resources have also been confirmed in the
Penistone Flags reservoir at Wressle that are over and above the
oil and gas reserves identified in the Ashover Grit and Wingfield
Flags reservoirs. In addition, PEDL182 also contains the promising
Broughton North Prospect.
Net Volumes of hydrocarbons attributable to Union Jack
post-acquisition
GROSS VOLUMES NET VOLUMES ATTRIBUTABLE
TO UNION JACK
OIL GAS OIL OIL MMSTB GAS BCF OIL
MMSTB BCF EQUIV EQUIV
MMBOE MMBOE
----------------------- ------- ----- ------- ---------- -------- -------
2P Ashover
Grit and Wingfield
Flags 0.62 0.20 0.65 0.09 0.03 0.10
----------------------- ------- ----- ------- ---------- -------- -------
2C Penistone
Flags 1.53 2.00 1.86 0.23 0.30 0.28
----------------------- ------- ----- ------- ---------- -------- -------
Broughton
North Mean
Unrisked Prospective
Resources 0.51 0.51 0.60 0.08 0.08 0.09
----------------------- ------- ----- ------- ---------- -------- -------
Gas converted to oil equivalent using 6 Bscf/MMboe conversion
added to oil volume
The interests held in both PEDL180 and PEDL182 are:
Egdon Resources U.K. Limited (Operator) 25.00%
----------------------------------------- ---------
Celtique Energie Petroleum Limited 30.00%
----------------------------------------- ---------
Europa Oil & Gas Limited 30.00% *
----------------------------------------- ---------
Union Jack Oil plc 15.00%
----------------------------------------- ---------
*On 24 November 2016, Europa Oil & Gas Limited announced
that it had agreed to sell a 10% interest in PEDL180 and PEDL182 to
Upland Resources Limited which sale is still pending.
David Bramhill, Executive Chairman of Union Jack, commented: "We
are delighted to be able to increase further our interest in the
attractive Wressle asset to 15%. The development of Wressle now
only remains subject to receipt of planning permission. Subject to
receipt of this approval and successfully bringing the project
onstream, management expect the Wressle development to generate
meaningful cash flows and transform the financial position of the
Company.
At the current oil price, management expects the net cash flow
generated from Wressle attributable to Union Jack to be
significant. The Board believes that production at Wressle will
generate excess cash after accounting for the Company's on-going
working capital obligations.
The acquisition of an increased stake in Wressle is consistent
with our strategy of building a balanced portfolio of production,
development, appraisal and exploration assets."
For further information please contact the following:
Union Jack Oil plc +44 (0)7787 160 682
David Bramhill
SP Angel Corporate Finance
LLP +44 (0)20 3470 0470
Nominated Adviser and Joint
Broker
Lindsay Mair
Stephen Wong
Richard Hail
Turner Pope Investments (TPI)
Ltd +44 (0)20 3621 4120
Joint Broker
Ben Turner
James Pope
In accordance with the AIM Rules - Note for Mining and Oil and
Gas Companies, the information contained within this announcement
has been reviewed and signed off by Graham Bull, Non-Executive
Director, who has over 46 years of international oil and gas
industry exploration experience.
This announcement contains certain forward-looking statements
that are subject to the usual risk factors and uncertainties
associated with the oil and gas exploration and production
business. While the directors believe the expectation reflected
within this announcement to be reasonable in light of the
information available up to the time of approval of this
announcement, the actual outcome may be materially different owing
to factors either beyond the Company's control or otherwise within
the Company's control, for example, owing to a change of plan or
strategy.
Accordingly, no reliance may be placed on the forward-looking
statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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