LONDON (Alliance News) - Union Jack Oil PLC and Europa Oil & Gas PLC Thursday said that Egdon Resources PLC has informed them that drilling on the Wressle-1 conventional exploration well on the PEDL 180 Licence in Lincolnshire is expected to start in July.
Europa Oil said that the Wressle-1 well is the first of two conventional wells in plans to drill onshore UK during 2014, noting that the drilling will start once construction of the drill site is complete and rig mobilisation is finished
"Combined these two wells are targeting an estimated 5 million barrels of mean gross un-risked recoverable resources, and each has a one in three chance of materially adding to our existing UK production," Europa Chief Executive Hugh Mackay said in a statement.
The PEDL 180 licence covers an area of 100 square kilometres and is held by Europa with a 33.33% stake, Egdon with a 25% operating stake, Celtique Energie Petroleum Ltd with a 33.33% stake and Union Jack with an 8.33% stake.
In a separate statement, Union Jack said that drillsite construction works will start on its Burton on the Wolds-1 conventional well at the PEDL201 licence in June, with drilling expected to start after drilling at Wressle-1 is completed.
The company said the gross mean prospective resources for the target objectives on the Burton on the Wolds-1 site, which is also partly owned by Egdon Resources, as calculated by Molten Ltd is 4.8 million barrels of oil.
"The past year has seen a tremendous amount of work carried out with our partners and, due to their tenacity, we are now approaching the start of drilling operations for two high-profile onshore wells," Union Jack Executive Chairman David Bramhill said in a statement.
Union Jack said that Molten has been commissioned to prepare a technical report to examine the shale resource potential of parts of the PEDL201 licence which is expected to be published in early June.
It also said that it intends to be active in bidding for certain interests during the much anticipated 14th Onshore UK Licensing Round, which is expected to be announced by the Department of Energy and Climate Change later in 2014.
Union Jack shares were up 2.8% to 0.298 pence, Europa Oil 7 Gas shares were up 4.8% to 7.60 pence and Egdon Resources shares were up 1.5% to 24.85 pence on Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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