Union Jack acquired a 20% interest in PEDL005(R) incorporating the Keddinton Oilfield and as a result of this transaction will receive 20% of all production revenues from Keddington, currently producing approximately 30 barrels of oil per day from Carboniferous age sandstone reservoirs from the Keddington 3-Z well.
Recent mapping of the 3-D seismic over Keddington has indicated areas of potentially unswept oil within structural closure. Comprehensive geophysical and geological evaluation is ongoing to better define the greater Keddington area.
Keddington is located along the highly prospective East Barkwith Ridge, an east-west structural high on the southern margin of the Humber Basin. The Saltfleetby gasfield is located at the east of this ridge. The Biscathorpe Prospect (Union Jack 12%), is located to the west and the Operator`s Best Estimate of gross Prospective Resources is 14 million barrels of oil and with an attractive geological chance of success (“COS”) of 40%. A conventional well at Biscathorpe is expected to be drilled in early 2018.
Additionally, there is also the potential for stratigraphic trapping at Biscathorpe, which, if present, could increase the expected gross Prospective Resources to 41 million barrels of oil.
PEDL005(R) also contains a portion of Louth and the entire North Somercotes gas prospect. The latter is estimated by the Operator to contain gross mean Prospective Resources of 11 billion cubic feet of gas with a COS of 25%. The interests held in
PEDL005(R) following the transaction are as follow:
North Somercotes Prospect
Located on the margins of the Humber Basin, the North Somercotes gas prospect is within PEDL005(R) to the north of the Saltfleetby gasfield and is estimated by the Operator to contain gross mean Prospective Resources of 11.0 billion cubic feet of gas. North Somercotes is estimated by the Operator to have a geological COS of 25 per cent.
|Keddington Oilfield||PEDL005(R)Excluding Keddington|
|Egdon Resources U.K. Limited||45%||65%|
|Terrain Energy Limited||35%||15%|
|Union Jack Oil plc||20%||20%|