Union Jack Oil has agreed to acquire a further 15% economic interest in PEDL253 containing the Biscathorpe project from Humber Oil & Gas.

Following completion of the acquisition Union Jack will hold a 45% interest in PEDL253.

Biscathorpe location (Map source: Union Jack Oil)

Highlights

• PEDL253 is located within the proven hydrocarbon fairway of the Humber Basin, on-trend with the Keddington oilfield (Union Jack 55%) which produces oil from a Carboniferous Westphalian aged reservoir
• Union Jack will acquire a 15% interest in PEDL253, containing the Biscathorpe project, increasing its interest to 45%
• Oil bearing Dinantian Carbonate reservoir of 57 metres has been confirmed by independent petrophysical analysis and oil samples from cuttings
• Dinantian oil play has gross Mean STOIIP of 24.3 million barrels of oil (mmbo) with an upside of case of 36 mmbo
• Evidence for a thickened Westphalian sandstone interval is apparent
• Gross Mean Prospective Resources associated with the Westphalian target total 3.95 mmbo with an upside case of 6.69 mmbo
• Economic modelling of the Westphalian target yields break-even full cycle economics estimated at US$18.07 per barrel and a gross NPV(10) valuation of £55.6 million
• Planning application to be submitted during February 2021 for side-track drilling, testing and long-term production
• Cash consideration of £500,000 to be paid on Oil and Gas Authority (OGA) approval and lodging of associated documents to allow licence interest transfer and, following receipt of various planning approvals, a contingent payment of £500,000

Commenting, David Bramhill, Executive Chairman of Union Jack, said:
“We are pleased to have taken this opportunity to increase our interest to 45% in Biscathorpe, that Union Jack’s technical team believe represents a material and commercially viable hydrocarbon resource that remains un-tested.

“The collective extensive technical information analysed over the past months, combined with APT’s conclusions on the likely presence of good quality oil, have materially upgraded the resource potential and economic value of the project in our view, further supporting our opinion that PEDL253 remains one of the UK’s largest onshore un-appraised conventional hydrocarbon licences.”

KeyFacts Energy: Union Jack Oil UK country profile