(Sharecast News) - UK-focussed onshore exploration and development company Union Jack Oil announced on Tuesday that the Oil and Gas Authority has approved its acquisition of a further 3% interest in PEDL253, containing the Biscathorpe Prospect, from Montrose Industries.
The AIM-traded firm said it would hold a 30% economic interest in the licence following the settlement agreement.
"We are pleased to complete this transaction, following which the company will hold a meaningful 30% interest in what we consider to be a key, potentially high-impact project within our well balanced portfolio," said executive chairman David Bramhill.
"PEDL253 remains, in the opinion of the company's management, one of the UK's largest onshore un-appraised conventional licences.
"The joint venture intends to pursue a cost-effective side-track from the existing Biscathorpe-2 well site where the resource potential of the Basal Westphalian sandstone will be tested, and also the appraisal of the oil column demonstrated to be present in the deeper Dinantian Carbonate reservoir."
At 1525 BST, shares in Union Jack Oil were up 4.72% at 0.26p.
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