# Union Jack Oil plc Commencement of drilling operations at Biscathorpe-2

- Link: https://www.directorstalkinterviews.com/763648-2/412763648
- Published: 2019-01-08T09:21:36+00:00
- Author: Charlotte Edwards

**[Union Jack Oil](https://www.directorstalkinterviews.com/company/union-jack-oil-plc/ujo.l)
plc** ([LON: UJO](https://www.directorstalkinterviews.com/company/union-jack-oil-plc/ujo.l)),
a UK focused onshore hydrocarbon production, development and exploration company,
today announced the commencement of drilling operations at Biscathorpe-2, located
within PEDL253 in Lincolnshire, in which Union Jack has a 22% licence interest. 
The Biscathorpe-2 well was spudded at 12:30 p.m. today, Monday 7th January 2019.

> **David Bramhill, Executive Chairman of Union Jack, commented:**
> “Biscathorpe is one of the UK’s largest onshore unappraised conventional oil prospects
> with Mean Prospective Resources of 14 million barrels gross and a geological chance
> of success of 40%, in which Union Jack has a meaningful 22% licence interest.
> “The Company`s economic modelling of the Biscathorpe Prospect highlights its attractiveness
> and shows a pre-drill value for the success case of circa £24 million net to Union
> Jack (using the industry standard net present value after tax at a 10% discount
> rate).
> “Biscathorpe is one of Union Jack’s near-term, high-impact projects and success
> here will be transformational for our Company. In addition to the defined structural
> closure, stratigraphic trapping, if present, could lead to significant upside 
> for oil resources. We look forward to updating shareholders and the market with
> preliminary results from the well in early February 2019.”

**The Biscathorpe-2 Well**

The well will be drilled to a total depth (“TD”) of approximately 2,100 metres below
ground level and is expected to take circa 30 days to reach TD. Biscathorpe-2 will
target a structural/stratigraphic trap at a depth of over 1,800 metres below Mean
Sea Level, defined on re-processed three-dimensional seismic data.

The targeted Basal Westphalian sandstone reservoir is expected to thicken at the
well location to the north of the crest of the ‘structural high’. This structural
high was drilled by BP at Biscathorpe-1 in 1987 and encountered a 1.2 metre thick,
oil saturated section of the sandstone reservoir.

The chance of success for Biscathorpe-2 is estimated as 40% and the range of gross
Prospective Resources in million barrels of oil (“mmbo”) as estimated by the Operator
is tabulated below.

  |

Volumetric Input / Output

  |

P90

  |

P50

  |

P10

  |

P(Mean)

  |  
 |

STOIIP (mmbo)

  |

7.52

  |

29.50

  |

142.00

  |

56.00

  |  
 |

Prospective Resources (mmbo)

  |

1.84

  |

7.30

  |

35.30

  |

14.00*

  |  
 |

*Net to Union Jack 22% interest 3mmbo

 

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The interests in PEDL253 are held by:

  |

[Egdon](https://www.directorstalkinterviews.com/company/egdon-resources-plc/edr.l) Resources U.K. Limited (Operator)

  |

35.8%

  |  
 |

Union Jack Oil plc

  |

22.0%

  |  
 |

Montrose Industries Limited

  |

22.2%

  |  
 |

Humber Oil & Gas Limited

  |

20.0%

  |

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