Union Jack Oil has announced a positive update on progress at Wressle and the approval of their acquisition of a further 12.5% of PEDL 180 and 182 from Humber Oil & Gas.

Location of of PEDL 180 and 182 (Map source: Humber Oil & Gas)

The Operator, Egdon Resources U.K. Limited, has advised the JV that ‘the Wressle civil engineering contractor has mobilised to site and the development works to reconfigure the existing Wressle site for production operations have now commenced. These works include the installation of: a new High Density Polyethelene (“HDPE”) impermeable membrane; specialist drain system; an approved surface water interceptor; the construction of a purpose-built bund area for storage tanks; a tanker loading plinth; and an internal roadway system’.

Egdon have said that the JV remains on track for first oil during  H2 2020 and that it is ‘economically robust with an estimated project break-even oil price of $17.62 pb’. For Union Jack, who now hold a ‘meaningful 40% interest’ on completion of their recent deal it means 200 barrels of oil per day net to the Company.

Commenting, David Bramhill, Executive Chairman of Union Jack, said: 
"Tangible progress is being made at Wressle. The guidance given for first oil remains on-track for H2 2020. The expected transformative economic effect on the Company once commercial production is established will be welcomed and will be a major catalyst in achieving our goal of propelling Union Jack to mid-tier status.

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, plus the future appraisal of the Biscathorpe discovery that has the potential to be another important project, and also at Keddington where there remains, in the management’s opinion, considerable potential to increase production".

KeyFacts Energy:   Union Jack Oil UK country profile   l   Humber Oil & Gas UK country profile