Union Jack Oil PLC (LON:UJO) said the Oil and Gas Authority has given the green light to its acquisition of a 12.5% additional stake in the onshore licences that host the Wressle operation in Lincolnshire.
It takes UJO’s holding to 40%, providing 200 barrels of additional daily output if Wressle comes on stream at an initial rate of 500 barrels a day.
Break-even at US$17.62 a barrel, Wressle will be a significant money-spinner with oil trading at around US$40 a barrel.
“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,” UJO chairman David Bramhill said in a statement
In addition to Wressle, the company has three other “material projects”. They are:
- 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
- Biscathorpe discovery, “which has the potential to be another important project”
- Keddington, “where there remains, in the management's opinion, considerable potential to increase production”