The company will hold approximately 40% interest in the Wressle development project upon completion of the deal
The acquisition increases the company's reserves and resources at Wressle by 45.5%.(Credit: skeeze/Pixabay)
UK-based onshore oil and gas exploration company, Union Jack Oil has received approval from the Oil and Gas Authority (OGA) of its acquisition of a further 12.5% stake in the licences that includes Wressle discovery.
The approval follows an agreement signed by the company with Humber Oil & Gas to acquire the stake in the licences PEDL180 and PEDL182 in June this year.
Upon completion of the deal, Union Jack will hold approximately 40% interest in the Wressle development project.
The acquisition increases the company’s reserves and resources at Wressle by 45.5% to 1.24 million barrels of oil equivalent.
The company said that the progress has been made at the Wressle oilfield development with the first oil remaining on-track for the second half of the year.
Union Jack executive chairman David Bramhill said: “Tangible progress is being made at Wressle. The guidance given for first oil remains on-track for H2 2020.
“In addition to Wressle, we have three other material projects within our portfolio, in particular West Newton where preparations are underway for the drilling of the B-1 appraisal well and the resumption of the extended well test at the successful West Newton A-2 well.”
Union Jack announced update on operations and progress at West Newton
The company has also announced an update on operations and progress at West Newton regarding the planned drilling of the West Newton B-1 (WNB-1) appraisal well, along with its subsequent testing, and the completion of the Extended Well Test at the West Newton A-2 (WNA-2) discovery well.
It owns a 16.665% stake in the PEDL183 containing the WNA-1 and WNA-2 discoveries.
Initial drilling operations at WNB-1 are expected to begin in the next few weeks that followed by a combined testing programme at both WNB-1 and WNA-2.