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UPDATE - Union Jack to flutter cash acquiring stakes in two onshore UK licences

Union Jack, the ISDX listed vehicle of oil entrepreneur David Bramhill, has agreed terms of a deal to acquire 10% interests in two onshore licences in the south of England from a subsidiary of Egdon Resources for £560,000. It will be the junior partner of five that includes Egdon, First Oil Expro, Aurora Exploration and Corfe Energy.

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---ADDS COMMENTS FROM THE CHAIRMAN---

Union Jack (ISDX:UJOP) , the ISDX listed vehicle of oil entrepreneur David Bramhill, has agreed terms of a deal to acquire 10% interests in two onshore licences in the south of England from a subsidiary of Egdon Resources for £560,000.

It will be the junior partner of five that includes Egdon, First Oil Expro, Aurora Exploration and Corfe Energy.

The two licences are in the Wessex Basin in Dorset, host to Wytch Farm, Britain’s most prolific onshore oil field, as well as the Wareham and Kimmeridge discoveries.

Planning permission for the Waddock Cross Field on PL90 is expected soon, which would put it on course for production in the third quarter at an anticipated rate of around 30-40 barrels a day.

Waddock Cross is mapped as having mean oil in place of over 30mln barrels. 

“The plan for the first phase of the development is to drill two further horizontal producer wells by 2015,” said Union Jack.

“Egdon estimates  that  the proven  and  probable  reserves  of  the  field  for  this  initial  phase  are approximately 300,000 barrels of oil.”

Elsewhere, Egdon has identified a number of leads and prospects at various reservoir levels including the Sherwood Sandstone, the  primary reservoir for the Wytch Farm.

Two prospective structures at Casterbridge and Broadmayne have been identified as having combined gross best estimate prospective resources of 50 million barrels of oil.

The company is acquiring an impressive portfolio of minority interests, following the blueprint set out in one of chairman Bramhill’s earlier ventures, the highly successful Oil Quest

Away from the south of England, Union Jack has negotiated farm-ins on assets on the productive Humber Platform and the South Humber Basin, in Lincolnshire, adjacent to producing fields.

Union Jack expects a six wells to be drilled on licences where it has interests.

“We are building a nice company,” Bramhill said in an interview with Proactive Investors.

“There’s great news flow. This is what investors are looking for. There are no back costs, the gearing is terrific.”

He is particularly excited about the Biscathorpe Prospect, on licence 253 in the South Humber Basin.

It is what’s described as a four-way dip closed structure that has been mapped from reprocessed 3D seismic. Drilling operations are planned to commence late this year, or early next.

“If it comes in, and it is a big if at this stage, then it could be very exciting,” Bramhill said.

Quick facts: Union Jack Oil PLC

Price: 0.1575 GBX

AIM:UJO
Market: AIM
Market Cap: £31.21 m
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on 01/26/2016

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