# Union Jack Oil plc Completes Farm-in to PEDL183 Containing the Significant West Newton Gas Discovery

- Link: https://www.directorstalkinterviews.com/union-jack-oil-plc-completes-farm-in-to-pedl183-containing-the-significant-west-newton-gas-discovery/412762384
- Published: 2018-12-03T07:10:16+00:00
- 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))
have today announced that the Company has received written consent from the Oil 
and Gas Authority, satisfied all conditions precedent, and has now completed the
Farm-in with Rathlin Energy (UK) Limited for a 16.665% licence interest in PEDL183,
containing the significant West Newton A-1 UK onshore gas discovery.

**Farm-in Highlights**

· Best Estimate Contingent Resources of 189 Bcf of gas equivalent or 31.5 million
barrels of oil equivalent (gross) assigned to the West Newton A-1 discovery in a
Competent Persons Report

· Drill-ready conventional appraisal well planned to be drilled in Q1 2019 and fully
funded from existing cash resources

· 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)

> **David Bramhill, Executive Chairman of Union Jack Oil plc, commented:**
> “We are pleased to complete the Farm-in to PEDL183, containing the material West
> Newton gas discovery that represents a significant and compelling project for 
> Union Jack.
> “The drilling of the West Newton conventional appraisal well is currently planned
> for Q1 2019 and will follow the planned commencement of drilling of the conventional
> Biscathorpe-2 appraisal well on PEDL253 by year end 2018 in which Union Jack holds
> a meaningful 22% licence interest. Both wells are fully permitted and success 
> at either would deliver a material onshore gas or oil development project respectively,
> with either being transformational for Union Jack.
> “The completion of the West Newton Farm-in puts Union Jack in a stronger position
> to deliver growth in reserves, production and asset value while adhering to our
> principles of strict financial and technical disciplines.
> “We look forward to keeping the market updated on the impending commencement of
> drilling of the high-impact appraisal wells at Biscathorpe-2 and at West Newton.”

The interests held in PEDL183 are as follows:

  |

Rathlin Energy (UK) Limited (Operator)

  |

66.67%

  |  
 |

Union Jack Oil plc

  |

16.665%

  |  
 |

Humber Oil & Gas Limited

  |

16.665%

  |

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