RE: *RNS* #Acquisition of Further Interest in #Wressle #Hydrocarbon Development Project8 Jun 2020 08:09
expecting 500 barrels a day
Union Jack will acquire a further 12.5% in the Wressle development, increasing its interest to 40%, reaffirming Union Jack's ongoing commitment to one of the Company`s three flagship projects
· The Acquisition is value accretive and increases Union Jack`s 2P Reserves and 2C Contingent Resource base at Wressle by 45.5%
· The Internal Rate of Return to the Company of the Acquisition is 46%, underlining the economic attractiveness of the Acquisition and the Wressle project
· The Wressle project economics remain strong in today`s oil price environment, with a cash break-even oil price estimated at US$17.62 per barrel
· Planning approval for the Wressle project is in place and development is underway
· The economic impact on the Company of establishing first oil at Wressle during H2 2020 will be financially transformative and will be enhanced by the Acquisition
· A Deferred Consideration of £1,040,000 to be paid to Calmar LP on "first commercial oil"
· Union Jack remains in a strong financial position with current cash reserves in excess of £5.5 million and fully funded for its existing drilling, testing and development commitments on all of its projects during 2020