Planning approval for the Wressle project is in place and development is underway with first oil expected during 2H20.
The company has said it believes the Wressle development project presents an opportunity for meeting energy needs in the UK and spurring local economic activity. The UK has recorded a 10% increase in electricity imports to meet its energy demand in 2019, according to recent reports on the UK power market.
David Bramhill, Executive Chairman of Union Jack, said: “This acquisition is important to Union Jack and increases our interest in Wressle, with production anticipated to commence during 2H20, from 27.5% to a material 40%. The terms of the acquisition are compelling and this transaction is significantly asset value accretive from the outset, reaffirming Union Jack’s commitment to the development of Wressle and will assist in delivering the company's goal to become a mid-tier producer in the medium-term.
“The acquisition has an immediate positive impact on Union Jack by increasing its reserves and resources at Wressle by 45.5% to in-excess of 1 240 000 boe. The development of Wressle continues apace and first oil is anticipated during 2H20. When Wressle is commissioned and in production, it will result in an initial constrained production anticipated to be 500 bpd gross, adding production of 200 bpd net to Union Jack and transforming the company’s financial position.
“The justification for Union Jack acquiring an additional interest in Wressle is our expectation of the transformative economic impact on the company. We believe that when commercial oil production at Wressle is established, it will provide Union Jack with meaningful cash revenues. After taking operating costs into consideration estimated net revenues are expected propel Union Jack to a profitable revenue generating oil and gas production company.
“Wressle also possesses several additional upside value drivers, which include, the economic impact of the possible production of gas and electricity sales over and above that used on site and, the additional significant contingent resource volumes within the Penistone Flags reservoir”.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/08062020/union-jack-oil-increases-interest-in-wressle-development/