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(Sharecast News) - UK-focussed onshore hydrocarbon company Union Jack Oil updated the market on the Biscathorpe project on Monday, located within Lincolnshire licence PEDL253.
The AIM-traded firm holds a 27.5% economic interest in the licence.
It said economic modelling had indicated a "financially robust" project in the current oil price environment.
Break-even full-cycle economics were estimated to be $18.07 per barrel of oil, with the principal Westphalian target having an unrisked gross net present value at a 10% discount (NPV10) of ?55.6m.
The secondary Dinantian Carbonate target was a possible additional commercially viable play, the company said.
It added that accessible drill targets had been identified for a side-track from the suspended Biscathorpe-2 well following 3D seismic reprocessing.
"We are highly encouraged by the conclusions of this detailed review of data in respect of Biscathorpe, particularly given the attractive resource volumes and values associated with the Westphalian and Dinantian targets," said executive chairman David Bramhill.
"The collective extensive technical information analysed over the past several months, combined with the APT conclusions on the likely presence of good quality oil have materially upgraded the resource potential and economic value of the project, upholding our opinion that PEDL253 remains one of the UK's largest onshore un-appraised conventional hydrocarbon licences.
"We look forward to providing further updates to shareholders as the Biscathorpe project develops."
At 1535 BST, shares in Union Jack Oil were down 1.79% at 0.093p.
16 Mar 2015 15:19