Malcy , always a pleasure to read his Blogs:1 Mar 2021 15:10
Union Jack/Egdon
Union Jack has announced this morning that the acquisition of 15% of Biscathorpe from Humber Oil & Gas announced on 18th January has now completed giving them a 45% stake in the field. They also announce, along with Egdon (35.8%) the submission of a Planning Application for side-track drilling, testing and in a success case, the long-term production of hydrocarbons at the Biscathorpe-2 wellsite, with drilling planned for H2 2021, subject to planning approval.
Commenting, David Bramhill, Executive Chairman of Union Jack, said:
“We are pleased to have taken this opportunity to have increased our interest to 45% in PEDL253. Union Jack’s technical team believe that Biscathorpe represents a material and commercially viable hydrocarbon resource that remains un-tested.
“The collective extensive technical information analysed over the past months, combined with APT’s conclusions on the likely presence of good quality oil, have materially upgraded the resource potential and economic value of the Biscathorpe project in our view, further supporting our opinion that PEDL253 remains one of the UK’s largest onshore un-appraised conventional hydrocarbon licences.
“We look forward to updating the market on drilling plans for the conventional B-2Z side-track appraisal well currently planned for H2 2021, subject to planning and other consents, that will allow both the Dinantian Carbonate and Basal Westphalian Sandstone targets to be tested.
“Any potential Biscathorpe oil development will be important to the UK as any indigenous production delivers a lower carbon footprint when compared to imported alternatives and it will also provide additional economic benefits to both regional and local communities.”
More good news from Union Jack and in this case Egdon as well. The Gross Mean Prospective Resources associated with the Westphalian Sandstone target area are estimated by the Operator to be 3.95 mmbo, with an upside case of 6.69 mmbo. Preliminary economic modelling demonstrates that the Westphalian target alone is economically robust in the current oil price environment with break-even full-cycle economics estimated at US$18.07 per barrel and a gross NPV(10) valuation of £55.6 million.
UJO’s technical team have for a long time believed in Biscathorpe and success with this planning consent would be another chance to prove that right. In terms of national value the field would be extremely important with its low carbon imprint…
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