# INTERVIEW: Union Jack Oil Proposed farm-in for a 16.67% Interest in Major West Newton Gas Discovery

- Link: https://www.directorstalkinterviews.com/interview-union-jack-oil-proposed-farm-in-for-a-16-67-interest-in-major-west-newton-gas-discovery/412759440
- Published: 2018-10-04T07:35:39+01:00
- Author: Giles Arbor

**[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
has agreed terms with Rathlin Energy Limited on a proposed farm-in for a 16.667%.
Executive Chairman David Bramhill joins DirectorsTalk to discuss the news. David
talks us through the proposed Farm-in details, the 2.5 million fundraiser, the next
steps regarding the farm-in and what news flow investors should be looking out for
over the coming months.

Highlights:

· Acquiring a 16.667% interest in the large 176,000 acre PEDL183 licence containing
the significant West Newton A-1 UK onshore gas discovery

· Attractive farm-in terms with no cash costs up front with all funding going towards
drilling and licence costs

· Best Estimate Contingent Resources of 189 Bcf of gas equivalent or 31.5 million
barrels of oil equivalent (gross) assigned to West Newton in a Competent Persons
Report

· West Newton A-1 gas discovery is on-trend with the prolific offshore Hewett gas
complex

· Proximity to existing gas pipelines and infrastructure

· Drill-ready conventional appraisal well planned to be drilled in Q1 2019 to appraise
the gas discovery

· Compelling immediate and future economic value from a development of the gas discovery
alone

· Operator’s NPV10% of US$247 million and 52.5% ROR for the gas discovery alone

· Attractive acquisition metrics of less than US$0.30 per barrel of oil equivalent
for the gas discovery alone

· Considerable upside potential from the lower Cadeby Reef oil exploration target
underlying the gas reservoir that will also be drilled with Best Estimate Prospective
Resources of 79.1 million boe (gross)

· Further significant upside potential from other numerous prospects and leads

· A successful appraisal well in Q1 2019 is expected to deliver a major onshore 
gas development

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