Oil and gas production and exploration company Union Jack Oil has secured approval from the UK Oil & Gas Authority (OGA) for the acquisition of a further 3.3% stake in PEDL180 and PEDL182 licences, which contain the Wressle-1 discovery.
PEDL182 also contains Broughton North Prospect.
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The additional interest was purchased from Celtique Energie Petroleum for £0.6m.
With the latest acquisition, Union Jack now holds a 15% interest in both licences.
According to the company, the increase in stake in the Wressle assets is in line with its strategy of building a balanced portfolio of production, development, appraisal and exploration assets.
Union Jack executive chairman David Bramhill said: “The development of Wressle now only remains subject to receipt of planning permission.
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By GlobalData“Subject to receipt of this approval and successfully bringing the project onstream, management expects the Wressle development to generate meaningful cash flows and transform the financial position of the company.”
Following planning approval, the first commercial oil is expected from Wressle-1 discovery at an initial constrained rate of 500 barrels of oil per day.
Egdon Resources UK, Celtique Energie Petroleum, Europa Oil & Gas and Union Jack Oil own 25%, 30%, 30% and 15% interests in the licences, respectively.
Funding of approximately £1.4m for the acquisition was arranged through placement process conducted in February this year.
