Union Jack Oil, the UK focused hydrocarbon exploration company, is pleased to announce that it has executed a farm-in agreement with Egdon Resources UK Limited (“Egdon”) and Celtique Energie Petroleum Limited (“Celtique”).
The agreement is to acquire a 10% interest in onshore UK petroleum exploration and development licence PEDL201. Under the terms of the agreement, Union Jack will pay 10% of the cost of the planned Burton on the Wolds-1 well to earn a 5% interest from each of Egdon and Celtique. This transaction is subject to approval from The Department of Energy and Climate Control (DECC).
Following completion of the transaction the interested parties in licence PEDL201 will be as follows; Egdon Resources U.K. Limited 32.5% (operator) Celtique Energie Petroleum Limited 32.5% Terrain Energy Limited 12.5% Corfe Energy Limited 12.5% Union Jack Oil plc 10%.
The licence is located in the onshore UK East Midlands Petroleum Province, on the southern margin of the Widmerpool Gulf, a geological basin with proven oil generation and migration, and on trend with the Rempstone and Long Clawson producing oil fields.
PEDL 201 contains the Burton on the Wolds Prospect, a four-way dip closed, footwall structure on the Hoton Fault system. The Burton on the Wolds Prospect has been mapped using new (2011) and reprocessed 2D seismic data.
The subsurface target location to test the Burton on the Wolds Prospect has been defined, a surface drilling location has been identified from which a vertical well can be drilled to evaluate the primary and secondary reservoir objectives, and a Planning Application for a well will be submitted shortly.
Drilling operations are planned to commence in late Q2 2013.
The mean combined Prospective Resources for the primary and secondary objectives, as calculated by Egdon are estimated to be 3.8 million barrels of oil.
The Directors consider this inaugural transaction to ideally suit the investment strategy of Union Jack with near term drilling activity at a location in an area of proven hydrocarbon production, and a low cost development if successful.
To view a location map of the Burton on the Wolds Prospect and licence PEDL201 please visit www.unionjackoil.com