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LONDON (Alliance News) - Union Jack Oil PLC on Monday said it completed a farm-in agreement with Rathlin Energy UK Ltd for a 16.7% interest in PEDL183, following approval from the Oil & Gas Authority.
The stock was trading 9.9% higher on Monday morning at 0.11 pence a share.
PEDL183 is a petroleum exploration & development licence, covering Crawberry Hill well site and West Newton A-1 UK onshore gas discovery, both located in Yorkshire, England.
The oil & gas exploration company expects West Newton gas discovery to contain 31.5 million barrels of oil equivalent.
The conventional appraisal well is planned to be drilled in the first quarter of 2019, the company said, and will be fully funded from its existing cash resources.
The well is expected to test two targets, comprising of Kirkham Abbey Formation gas discovery and Cadeby Formation reef flank oil prospect.
"The completion of the West Newton farm-in puts Union Jack in a stronger position to deliver growth in reserves, production and asset value while adhering to our principles of strict financial and technical disciplines," said Union Jack Executive Chairman David Bramhill.