Union Jack Oil Plc (“Union Jack” or “the Company”) is an onshore oil and gas production and exploration company with a focus on production, exploration, development and investment in the United Kingdom hydrocarbon sector. Union Jack is currently raising £1.4million before costs at 0.135p per share.
Union Jack has ongoing oil & gas projects. These include:
Biscathorpe: Union Jack holds a 12% interest in PEDL253, located within the proven hydrocarbon fairway of the Humber Basin, on trend with the Saltfleetby gas field and the Keddington oil field which produces from the Upper Carboniferous Westphalian aged reservoir sandstones. The Biscathorpe structure was initially drilled and tested by BP in 1987 with the Biscarthorpe-1 well which encountered 1.2 metre thick, oil-bearing sandstone of lower Westphalian age with a 24 metre gross sequence. The Biscathorpe-2 will be located in a direction towards a potentially thicker sand development within the structural closure of the trap. The mean Prospective Resource volume for the main reservoir objectiveis 17.81 million barrels of oil. Biscathrope-2 is planned to be drilled in during 2017.
Burton on the Wolds: Union Jack holds a 10% interest in PEDL201. In October 2014 drilling operations were completed on the Burton on the Wolds-1 exploration well located on PEDL201 in Leicestershire and the well was plugged penetrating only thin sands in the primary reservoir objective, the Rempstone Sandstone group. Data received during drilling is now being interpreted in order to evaluate the future prospectivity of the licence.
Keddington: Union Jack holds a 10% interest in PEDL005(R). PEDL005(R) is located in Lincolnshire and holds the Keddington oilfield, the Louth and North Somercote prospects. Keddington has produced in excess of 300,000 barrels of oil to date and is currently producing approximately 30 to 35 barrels of oil per day gross with associated gas from two wells, Keddington-4 and Keddington-3Z. The Operator is seeking to maximise the value of the “Greater Keddington” area through two additional drill-ready prospects located within PEDL005(R) namely Louth and North Somercotes. Under the terms of its acquisition Union Jack has the opportunity to earn in a further 10% of Keddington.
North Kelsey: Union Jack holds a 10% interest in PEDL241. PEDL241 is located within the proven hydrocarbon fairway of the Humberside Platform. This prospect is a well-defined tilted fault-block mapped from 3D seismic. The gross mean combined Prospective Resources for these multiple objectives are estimated to be 6.7 million barrels of oil. In December 2014, the Planning and Regulation Committee of Lincolnshire County Council granted planning consent for the drilling and any subsequent testing of the North Kelsey-1 well.
Wressle: Union Jack holds an 11.67% interest in PEDL180 and PEDL182 located in Lincolnshire, on the Western margin of the Humber Basin and is on trend with the producing Crosby Warren oil field and the Brigg-1 oil discovery, situated to the immediate northwest and southeast of the licence respectively. The Wressle-1 well has flowed oil and gas from three separate reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone Flags. The flow test from Zone 3a has confirmed the presence of an oil column below the gas leg in Zone 3 of the Penistone Flags. The downhole pressure and oil sample data from all tests will now be interpreted and integrated into an updated field model to inform future development planning. The Broughton North Prospect is located within PEDL182 and has been generated primarily from a high quality 3D seismic data set acquired during 2012. This exercise provided detailed structural data and enabled a bottom-hole target location to be identified for the Brooughton North Prospect. Union Jack’s share of funding of the Broughton North well will be paid for by hydrocarbon sales from the Wressle-1 commercial production expected to commence in late 2017. The Wressle-1 discovery has significantly reduced the geological risk over PEDL180 and PEDL182 and additionally this transaction will benefit the Company going forward in any “add on” development decisions which may follow once Wressle-1 is in commercial production. The Operator will submit a new planning application for the Wressle development, which will include even more detailed information to address the specific concerns outlined by the North Lincolnshire Council in their refusal, in the near future.
The Company is currently fully funded for its existing commitments, which include the drilling of the Biscathorpe-2 and Holmwood-1 conventional exploration wells. The Company intends to utilise the proceeds of the Placing to increase its interests in existing licences within the Company’s portfolio. Management are working towards concluding these acquisitions in the near term.
Stock Specific Risks
- The company will be subject to typical oil and gas exploration and development risks. There is no guarantee the company will be able to define economically viable resources.
- Any delay to the development timeline would disappoint the market and sentiment towards the shares.
- Commodity prices will fluctuate, which could affect the economic feasibility of the project.
If you are buying outside of normal market size then this may prevent you from selling the shares at market price.