Union Jack Oil PLC Wressle Oilfield Development Economically Robust (5310G)
18 March 2020 - 6:00PM
UK Regulatory
TIDMUJO
RNS Number : 5310G
Union Jack Oil PLC
18 March 2020
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
18 March 2020
Union Jack Oil plc
("Union Jack" or the "Company")
Wressle Oilfield Development Economically Robust at Current Oil
Price
Union Jack Oil plc (AIM: UJO), a UK focused onshore hydrocarbon
production, development and exploration company is pleased to
announce an update in respect of the development plan for the
Wressle oilfield located within North Lincolnshire licences,
PEDL180 and PEDL182. The Company holds a 27.5% interest in these
licences where gross oil production is anticipated to be circa 500
barrels per day.
Egdon Resources plc, the Operator, has updated its economic
model for the Wressle oilfield. This work demonstrates that the
project is economically robust in the current oil price environment
with a cash break-even oil price estimated at $17.62 per
barrel.
The forward plan for the Wressle oilfield development comprises
the following key stages:
1. Discharging the planning conditions, finalising detailed
designs, tendering and procurement of materials, equipment and
services and finalising all HSE documentation and procedures
2. Installation of the ground water monitoring boreholes and
establishment of baseline conditions through monitoring
3. Reconfiguration of the site
4. Installation and commissioning of surface facilities
5. Sub-surface operations
6. Commencement of production
Progress to date has concentrated on the enabling works
highlighted in point 1 above. The initial work on site will be the
installation of the groundwater monitoring boreholes with the main
site operations occurring in the last months of the work stream. On
current plans, first oil is envisaged during H2 2020.
The Wressle oilfield development was granted planning consent on
appeal on 17 January 2020. The Planning Inspector also allowed an
application for costs against North Lincolnshire Council ("NLC")
and details have subsequently been submitted to NLC.
David Bramhill, Executive Chairman of Union Jack Oil plc
commented:
"Economic modelling demonstrates that the Wressle oilfield
development is robustly economic at current oil prices with a cash
break-even oil price estimate of $17.62 per barrel. The Wressle
oilfield remains one of our more advanced development projects
within our business, with an expectation of first oil and
associated cash flow in the second half of 2020.
"Progress on our other key projects, at West Newton and
Biscathorpe, continues apace. We look forward to providing further
updates on these two additional significant projects in our
portfolio in the near future.
"Importantly, with in excess of GBP6.2 million in cash and no
debt, Union Jack is funded for all testing and drilling commitments
for 2020."
Competent Person`s Statement
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 experience.
For further information, please contact:
Union Jack Oil plc +44 (0) 7787 160 682
David Bramhill, Executive Chairman
SP Angel Corporate Finance LLP +44 (0) 20 3470 0470
Nominated Adviser and Broker
Richard Morrison
Richard Hail
Caroline Rowe
Blytheweigh +44 (0) 20 7138 3204
Financial PR
Tim Blythe
Megan Ray
Madeleine Gordon-Foxwell
Cassiopeia Services Ltd +44 (0) 7949 690 338
Public Relations
Stefania Barbaglio
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END
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