UK-based Union Jack Oil (UJO) has secured approval from the Oil and Gas Authority (OGA) for the acquisition of an additional 12.5% stake in PEDL180 and PEDL182 licences containing the Wressle discovery from Humber Oil & Gas.
Upon completion, UJO will own a 40% stake in the Wressle development project.
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According to UJO, the acquisition will have ‘an immediate positive impact’ on the company by increasing its reserves and resources at Wressle by 45.5% to 1.24 million barrels of oil equivalent (boe).
The Wressle oil field development project lies onshore UK in North Lincolnshire licences PEDL180 and PEDL182. It was discovered by the Wressle-1 well on the PEDL180 licence in Lincolnshire in 2014.
Europa Oil & Gas Holdings (EOG) holds a 30% working interest in the licences. Other partners include Egdon (30%), Union Jack Oil (27.5%) and Humber Oil & Gas (12.5%), with Egdon serving as the operator of the project.
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.
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By GlobalData“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.”
Once Wressle is operational, it is expected to initially produce about 500 barrels per day (bpd) of gross oil, or 200bpd net oil to the company.
In March this year, EOG, UJO and other partners described the Wressle oil field development project as ‘economically robust’ in the current low oil price environment.
