Union Jack Oil (UJO) has agreed with Europa Oil & Gas Ltd to acquire a further 3.34% interest in PEDL180 and PEDL182.
These licences contain the Broughton North Prospect situated in PEDL182 and the Wressle-1 discovery well from which first commercial oil is expected to flow at an estimated constrained rate of 500 barrels of oil per day gross in early 2017.
Union Jack currently holds an 8.33% interest in both licences. Following completion of the transaction the Company will hold an 11.67% interest.
The consideration for the acquisition is £600,000 for the additional 3.34% economic interest. The transaction is subject to Oil and Gas Authority approval.
The Consideration will be paid for from the £700,000 raised in the placing (before expenses) announced on 22 September 2016, the proceeds of which were to be used for the purpose of acquiring interests in near term development and production opportunities onshore UK.
The Company`s cash balance following payment of the Consideration is in excess of £2m and the Company remains fully funded for its other committed projects including the drill-ready Holmwood-1 and Biscathorpe-2 conventional wells and ongoing development costs for Wressle-1.