Union Jack Oil PLC Completion of West Newton Farm-In (1406J)
03 December 2018 - 6:00PM
UK Regulatory
TIDMUJO
RNS Number : 1406J
Union Jack Oil PLC
03 December 2018
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement
3 December 2018
Union Jack Oil plc
("Union Jack" or the "Company")
Completion of Farm-in to PEDL183 Containing the Significant West
Newton Gas Discovery
The Directors of Union Jack Oil plc (AIM: UJO) are pleased to
announce that the Company has received written consent from the Oil
and Gas Authority, satisfied all conditions precedent, and has now
completed the Farm-in with Rathlin Energy (UK) Limited for a
16.665% licence interest in PEDL183, containing the significant
West Newton A-1 UK onshore gas discovery.
Farm-in Highlights
-- Best Estimate Contingent Resources of 189 Bcf of gas
equivalent or 31.5 million barrels of oil equivalent (gross)
assigned to the West Newton A-1 discovery in a Competent Persons
Report
-- Drill-ready conventional appraisal well planned to be drilled
in Q1 2019 and fully funded from existing cash resources
-- Operator's NPV10% of US$247 million and 52.5% ROR for the gas discovery alone
-- Attractive acquisition metrics of less than US$0.30 per
barrel of oil equivalent for the gas discovery alone
-- Considerable upside potential from the lower Cadeby Reef oil
exploration target underlying the gas reservoir that will also be
drilled, with Best Estimate Prospective Resources of 79.1 million
boe (gross)
David Bramhill, Executive Chairman of Union Jack, commented:
"We are pleased to complete the Farm-in to PEDL183, containing
the material West Newton gas discovery that represents a
significant and compelling project for Union Jack.
"The drilling of the West Newton conventional appraisal well is
currently planned for Q1 2019 and will follow the planned
commencement of drilling of the conventional Biscathorpe-2
appraisal well on PEDL253 by year end 2018 in which Union Jack
holds a meaningful 22% licence interest. Both wells are fully
permitted and success at either would deliver a material onshore
gas or oil development project respectively, with either being
transformational for Union Jack.
"The completion of the West Newton Farm-in puts Union Jack in a
stronger position to deliver growth in reserves, production and
asset value while adhering to our principles of strict financial
and technical disciplines.
"We look forward to keeping the market updated on the impending
commencement of drilling of the high-impact appraisal wells at
Biscathorpe-2 and at West Newton."
The interests held in PEDL183 are as follows:
Rathlin Energy (UK) Limited
(Operator) 66.67%
Union Jack Oil plc 16.665%
--------
Humber Oil & Gas Limited 16.665%
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For further information, please contact:
Union Jack Oil plc +44 (0)7787 160 682
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser
Lindsay Mair
Richard Hail
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END
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