(Alliance News) - Union Jack Oil PLC, Europa Oil & Gas Holdings PLC, and Egdon Resources PLC on Thursday all commented on the latest Wressle oil field update and a new loan facility.
UK-focused onshore hydrocarbon production, development and exploration company Union Jack is providing the GBP1.0 million loan to Wressle operator Edgon. The money will assist in development of the North Lincolnshire project, which Union Jack highlighted as a "key asset" for the company with an anticipated production of 200 barrels of oil per day net to Union Jack.
The loan has an 18 month term, with the principal sum payable at the end of the term, as well as in full or in part at any time before then. Interest is to accrue daily on the outstanding loan amount at an 11% per annum interest rate and is payable quarterly, beginning on the soonest of either the first quarter end-date after initial production or April 1, 2021.
Union Jack noted that the loan is secured against an unencumbered 25% interest in licences PEDL180, and PEDL182, including the Wressle development project as well as associated infrastructure. Union Jack currently holds a 40% economic interest, while Egdon's operated interest is 30%. Europa's working interest is 30%.
The latest update, as noted by all three companies, is that the PEDL180 and PEDL182 joint venture has opted to defer workover operations as well as the final commissioning of Wressle until January 2021 so as to eliminate "any possible operating and supply chain issues associated with the December festive shutdown".
Delivery of all remaining equipment to Wressle is expected in December, despite Covid-19 related challenges.
Mobilisation of the workover rig is to occurring immediately in the new year, with the rig to be completed and initial oil flows expected later in January.
Europa highlighted that 710 barrels of oil equivalent per day were recovered ruing Wressle testing from three separate reservoirs with further development including producing additional reserves in the Penistone Flags formation expected in the future.
"In addition, the Licences hold Broughton North, a low risk exploration prospect lying on the footwall side of a fault, adjacent to the historic Broughton-B1 discovery made by BP in 1984 which the CPR assigned gross mean un-risked prospective resources of 0.6 million [barrels of oil equivalent]," Europa commented.
On Thursday, shares in Union Jack were up 10% at 0.14 pence; Europa shares were down 5.9% at 1.04p; and Egdon shares were down 6.3% at 1.50p.
By Anna Farley; annafarley@alliancenews.com
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Europa Oil & Gas (EOG)
Union Jack (UJO)