According to Union Jack and partners estimates, there remains an undrained volume ranging between 309,000 and 566,000 barrels of oil below the previously drilled Keddington-4 well.
Union Jack Oil said that the Keddington-5 well intends to access the undrained stock tank oil initially in place through the drilling of the Keddington-5 sidetrack from the existing Keddington-4 well.
The Keddington-5 sidetrack well targets an area of the field where the sandstone reservoir has not been produced.
The drilling operations, which are aimed at increasing the production and profitability of the field, are planned to be completed in early February.
Union Jack Oil executive chairman David Bramhill said: "Union Jack, with over £3m of cash and debt free, will continue to participate in attractive projects such as Keddington that offer realistic chances of success and the opportunity to add to its asset base at moderate cost."
The PEDL005R license involves the producing Keddington oilfield as well as the two exploration prospects including Louth and North Somercoates.
Egdon operates the license with 45% stake while Terrain Energy owns 35% interest. Other partners include Cairn Energy subsidiary Nautical Petroleum and Union Jack Oil each with 10% interest.
Union Jack acquired a 10% interest in PEDL005(R) from Egdon Resources in September 2015.
As per the deal, Union Jack will be responsible for funding 20% of the costs of the Keddington-5 sidetrack well and the Louth exploration well each. The Louth exploration well drilling is planned for 2016/2017.
Image: The drilling operations are aimed at increasing the production and profitability of the Keddington field. Photo: courtesy of Egdon.
