Union Jack Oil plc (LON:UJO), a UK-focused, onshore oil and gas production and exploration company, has today announced that the Oil and Gas Authority has approved the acquisition by Union Jack of a 20% economic interest in licence EXL294 containing the producing Fiskerton Airfield Oilfield (“Fiskerton”) from the Operator, Egdon Resources plc.
EXL294 is located approximately seven miles east of the City of Lincoln. Fiskerton was discovered in 1997 and cumulative production has totalled circa 440,000 barrels of oil from the most likely mapped Oil in Place of 2.2 million barrels. The oil is of good quality (35.2o API) and is exported by road tanker to a refinery at Immingham, North East Lincolnshire.
The Company`s initial review of historic 3D seismic and drill logs suggests there is upside potential in the oil resources at Fiskerton. Union Jack will fund a 3D seismic re-processing exercise on behalf of the Joint Venture to assist in re-mapping the area surrounding Fiskerton to identify further production opportunities from the reservoir. It is estimated that initial interpretations from the 3D seismic re-processing will be available H1 2018.
Fiskerton has suffered from a marked lack of investment over the years. Prior to acting on the initial interpretations of the 3D seismic re-processing, the Joint Venture partners plan to enhance the cash flows and profitability of Fiskerton by increasing production initially to between 30 and 40 barrels of oil per day via low cost well interventions. Workover operations are planned on both the producing FA-3 and the shut in FA-1 wells during the next few months including the installation of new tubing, pumps and the isolation of water producing zones.
Subject to the results of the 3D seismic re-processing, the Joint Venture partners will investigate the potential to increase further production through in-fill drilling.
The interests held in EXL294 are held by:
Egdon Resources plc (Operator) 80%
Union Jack Oil plc 20%