Stock Market News
Union Jack Oil ups stake in PEDL253 to 22pc
Union Jack Oil announced on Tuesday that it has signed a farm-in agreement for a further 10% licence interest in PEDL253, increasing its economic interest to 22%.
The AIM-traded firm said the drill-ready conventional Biscathorpe-2 well was scheduled to be drilled around mid-year 2018.
It said Biscathorpe represented a "highly attractive, risk-adjusted" investment opportunity for Union Jack, with gross mean prospective oil resources of 14 million barrels and a 40% geological chance of success.
Biscathorpe-2 also represented the first project with Union Jack's commercial partner, Humber Oil & Gas, where both parties acquired a 10% interest.
"We are pleased to be able to further increase our interest in the drill-ready conventional Biscathorpe-2 well to 22% that is planned to be drilled around mid-year 2018," said Union Jack chairman David Bramhill.
"Biscathorpe-2 holds considerable upside potential for our company with gross prospective oil resources of 14 million barrels and a high geological chance of success of 40%.
"The oil logged in BP's 1987 well, Biscathorpe-1, has significantly de-risked the Biscathorpe Prospect."
Bramhill said Union Jack's proprietary economic modelling of the Biscathorpe Prospect highlighted its attractiveness, and showed a pre-drill value for the success case of around £24m net to Union Jack, using the industry standard net present value after tax at a 10% discount rate.
He said that was "significantly in excess" of the approximate £1m drilling cost the firm would be incurring, for which it was fully funded following our recent placing.
"We look forward to the drilling of the Biscathorpe-2 well this year.
"This well, together with the company's wider portfolio, and the newly-formed commercial partnership with Humber, puts Union Jack in a strong position to deliver growth in reserves, production and asset value, while adhering to our principles of strict financial and technical disciplines."
The AIM-traded firm said the drill-ready conventional Biscathorpe-2 well was scheduled to be drilled around mid-year 2018.
It said Biscathorpe represented a "highly attractive, risk-adjusted" investment opportunity for Union Jack, with gross mean prospective oil resources of 14 million barrels and a 40% geological chance of success.
Biscathorpe-2 also represented the first project with Union Jack's commercial partner, Humber Oil & Gas, where both parties acquired a 10% interest.
"We are pleased to be able to further increase our interest in the drill-ready conventional Biscathorpe-2 well to 22% that is planned to be drilled around mid-year 2018," said Union Jack chairman David Bramhill.
"Biscathorpe-2 holds considerable upside potential for our company with gross prospective oil resources of 14 million barrels and a high geological chance of success of 40%.
"The oil logged in BP's 1987 well, Biscathorpe-1, has significantly de-risked the Biscathorpe Prospect."
Bramhill said Union Jack's proprietary economic modelling of the Biscathorpe Prospect highlighted its attractiveness, and showed a pre-drill value for the success case of around £24m net to Union Jack, using the industry standard net present value after tax at a 10% discount rate.
He said that was "significantly in excess" of the approximate £1m drilling cost the firm would be incurring, for which it was fully funded following our recent placing.
"We look forward to the drilling of the Biscathorpe-2 well this year.
"This well, together with the company's wider portfolio, and the newly-formed commercial partnership with Humber, puts Union Jack in a strong position to deliver growth in reserves, production and asset value, while adhering to our principles of strict financial and technical disciplines."
Related share prices |
---|
Union Jack Oil (UJO) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price