Union Jack Share News (UJO)

(Sharecast News) - Union Jack Oil shares were in the green at lunchtime on Wednesday, after a positive announcement from the operator of the Wressle hydrocarbon development on North Lincolnshire licences PEDL180 and PEDL182.

The AIM-traded firm holds a 27.5% economic interest in the licences.

It noted that the development was granted planning consent on appeal on 17 January, with the Planning Inspector also allowing Egdon's application for costs against the North Lincolnshire Council.

Union Jack said £0.4m had now been received from the council to the operator, as a full settlement of those costs.

That cash would be divided between the partners, proportionate to their interests.

As had been previously announced, the plan for Wressle comprised a number of key stages, with the first being the dischargement of the planning conditions, finalising detailed designs, tendering and procurement of materials, equipment and services and finalising all health and safety documentation and procedures.

Following that, the installation of groundwater monitoring boreholes and the establishment of baseline groundwater quality through monitoring and analysis would take place.

The next key stage would see the site reconfigured, followed by the installation and commissioning of surface facilities, then sub-surface operations, and finally, the commencement of production.

Following council approval of the installation plan and discharge of the associated planning condition, the operator said it had now completed the installation of four groundwater monitoring boreholes on the Wressle site.

Those boreholes would be subject to monitoring and analysis throughout the life of the site, with an initial three months of sampling to determine baseline groundwater quality.

As had been previously advised, the operator was currently envisaging first oil during the second half of 2020.

"Excellent progress is being made in respect of the development process at Wressle leading to 'first oil', expected during the second half of 2020," said Union Jack's executive chairman David Bramhill.

"The project remains economically robust with an estimated break-even oil price of $17.62 per barrel."

At 1200 BST, shares in Union Jack Oil were up 1.52% at 0.13p.