Union Jack Oil PLC Biscathorpe Drilling Update (4044M)
January 07 2019 - 7:30AM
UK Regulatory
TIDMUJO
RNS Number : 4044M
Union Jack Oil PLC
07 January 2019
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
7 January 2019
Union Jack Oil plc
("Union Jack" or the "Company")
Commencement of Drilling Operations at Biscathorpe
Union Jack Oil plc (AIM: UJO), a UK focused onshore hydrocarbon
production, development and exploration company, is pleased to
announce the commencement of drilling operations at Biscathorpe-2,
located within PEDL253 in Lincolnshire, in which Union Jack has a
22% licence interest. The Biscathorpe-2 well was spudded at 12:30
p.m. today, Monday 7(th) January 2019.
David Bramhill, Executive Chairman of Union Jack, commented:
"Biscathorpe is one of the UK's largest onshore unappraised
conventional oil prospects with Mean Prospective Resources of 14
million barrels gross and a geological chance of success of 40%, in
which Union Jack has a meaningful 22% licence interest.
"The Company`s economic modelling of the Biscathorpe Prospect
highlights its attractiveness and shows a pre-drill value for the
success case of circa GBP24 million net to Union Jack (using the
industry standard net present value after tax at a 10% discount
rate).
"Biscathorpe is one of Union Jack's near-term, high-impact
projects and success here will be transformational for our Company.
In addition to the defined structural closure, stratigraphic
trapping, if present, could lead to significant upside for oil
resources. We look forward to updating shareholders and the market
with preliminary results from the well in early February 2019."
The Biscathorpe-2 Well
The well will be drilled to a total depth ("TD") of
approximately 2,100 metres below ground level and is expected to
take circa 30 days to reach TD. Biscathorpe-2 will target a
structural/stratigraphic trap at a depth of over 1,800 metres below
Mean Sea Level, defined on re-processed three-dimensional seismic
data.
The targeted Basal Westphalian sandstone reservoir is expected
to thicken at the well location to the north of the crest of the
'structural high'. This structural high was drilled by BP at
Biscathorpe-1 in 1987 and encountered a 1.2 metre thick, oil
saturated section of the sandstone reservoir.
The chance of success for Biscathorpe-2 is estimated as 40% and
the range of gross Prospective Resources in million barrels of oil
("mmbo") as estimated by the Operator is tabulated below.
Volumetric Input / Output P90 P50 P10 P(Mean)
STOIIP (mmbo) 7.52 29.50 142.00 56.00
----- ------ ------- --------
Prospective Resources (mmbo) 1.84 7.30 35.30 14.00*
----- ------ -------
*Net to Union Jack 22% interest
3mmbo
The interests in PEDL253 are held by:
Egdon Resources U.K. Limited
(Operator) 35.8%
Union Jack Oil plc 22.0%
------
Montrose Industries Limited 22.2%
------
Humber Oil & Gas Limited 20.0%
------
Competent Person's Statement
In accordance with the "AIM Rules - Note for Mining and Oil and
Gas Companies", the information contained within the announcement
has been reviewed and signed off by Graham Bull, Non-Executive
Director, who has over 46 years of international oil and gas
industry exploration experience.
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
Cassiopeia Services Ltd +44 (0)7949 690 338
Public Relations
Stefania Barbaglio
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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