RE: Out of interest21 Jun 2019 00:07
Don't forget Wressle
"This Acquisition, with no upfront cash payment, increases our interest in Wressle from 15% to 27.5%. The Acquisition is highly attractive and significant to Union Jack's future and reaffirms Union Jack's and its joint venture partners' commitment to the development of Wressle.
"The Acquisition has an immediate positive impact on Union Jack by instantly increasing its reserves and resources base by 83% to in excess of 855,000 barrels of oil equivalent. Revised site design and hydrological work in respect of the development of Wressle continues which is subject to the new planning application being successful. Once Wressle is in production, it will result in an initial constrained production anticipated to be 500 barrels of oil per day gross, adding production in excess of 137 barrels of oil per day net to Union Jack and transforming the Company's financial position.
"The justification for Union Jack acquiring an additional interest in Wressle is the transformative economic impact to the Company, as we believe that when commercial oil production at Wressle is established, it would provide Union Jack with cash flows of approximately US$4 million per annum in the current oil price environment. After taking operating costs into consideration, that are estimated to be below US$15 per barrel, such net revenues would propel Union Jack into a material revenue generating oil and gas production company. In further support of the Acquisition, the economics are robust and net asset value accretive down to an oil price of US$35 per barrel.
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