Union Jack Oil Acquires an Additional 35% Interest in the Keddington Oil Field
AIM-listed E&P company Union Jack Oil Plc has acquired an additional 35% economic interest in onshore UK license PEDL005(R) (containing the producing Keddington oil field) from Terrain Energy Ltd., for a consideration of GBP200,000. In addition, Union Jack has assumed costs of GBP35,000 in relation to site activities. As a result, Union Jack will hold a 55% non-operated interest in Keddington, with operator Egdon Resources Plc holding the remaining 45%.
The Keddington field is located along the highly prospective East Barkwith Ridge, an east-west structural high on the southern margin of the Humber Basin in Lincolnshire. The field currently produces approximately 28 barrels of oil per day, and is estimated to contain gross remaining Mean Contingent Resources of 567,000 barrels of oil (311,000 barrels net to Union Jack). Egdon is in the process of finalizing the assessment of potential in-fill drilling locations with a view to targeting a side-track drilling location. In addition, a near field exploration opportunity exists at Keddington South, which has a gross Mean Prospective Resource Volume of 635,000 barrels of oil (349,250 barrels net to Union Jack). As part of this acquisition, Union Jack is also acquiring a 15% interest in PEDL339, into which the Louth Prospect extends from PEDL005(R).
The completion of the acquisition remains subject to approval by the UK Oil & Gas Authority (OGA).