Upon execution of the settlement agreement, the UJO will increase its stake to 30% in PEDL253 that contains the prospect
UK-based onshore oil and gas exploration company, Union Jack Oil (UJO) has secured approval from the Oil and gas Authority (OGA) for the acquisition of a further 3% interest in PEDL253, containing the Biscathorpe Prospect.
The company will acquire the stake in PEDL253 from Montrose Industries for an undisclosed amount.
Upon execution of the settlement agreement, the UJO will hold a 30% economic interest in PEDL253.
The Biscathorpe Prospect is within PEDL253 in the proven hydrocarbon fairway of the Humber Basin, on trend with the Saltfleetby gas field and Keddington oil field that produces oil from Upper Carboniferous Westphalian aged reservoir sandstones.
Union Jack Oil executive chairman David Bramhill said: “We are pleased to complete this transaction, following which the Company will hold a meaningful 30% interest in what we consider to be a key, potentially high-impact project within our well balanced portfolio.
“The joint venture intends to pursue a cost-effective side-track from the existing Biscathorpe-2 well site where the resource potential of the Basal Westphalian sandstone will be tested, and also the appraisal of the oil column demonstrated to be present in the deeper Dinantian Carbonate reservoir.
“I look forward to updating shareholders once all technical and operational plans are finalised by the joint venture partners during H2 2020.”
PEDL253 joint venture carried detailed studies on Biscathorpe project
The extensive and detailed studies on the Biscathorpe project as well as the reprocessing and remapping of 264km2 of 3-D seismic were completed by the PEDL253 joint venture partnership.
The studies at the Biscathorpe project including the results of the Biscathorpe-2 well, have concluded that a possible material and commercially viable hydrocarbon resource remains to be tested.
In June this year, UJO agreed to acquire a further 12.5% stake in the Wressle hydrocarbon development project from Humber Oil & Gas.