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Union Jack Oil

Union Jack Oil updates on North Kelsey prospect

Union Jack Oil plc (LON:UJO), a UK focused onshore hydrocarbon production, development and exploration company, has noted the positive announcement made today by the Operator in respect of PEDL241 containing the North Kelsey-1 well site location.

“Egdon Resources plc (AIM:EDR) advises that its application to extend to 31 December 2021, the existing planning permission to drill conventional exploratory oil well at North Kelsey-1 site location was approved at today’s meeting of the Lincolnshire County Council Planning Committee.”

North Kelsey

The PEDL241 Licence Interests are:

Egdon Resources U.K. Limited          80% (Operator)

Union Jack Oil plc                                             20%

The North Kelsey Prospect has been mapped from 3-Dimensional seismic data and has potential for oil in up to four stacked conventional Carboniferous reservoir targets: the Chatsworth Grit, Beacon Hill Flags, Raventhorpe Sandstone and Santon Sandstone. Egdon has calculated the Prospective Resources to range from 4.66 million barrels up to 8.47 million barrels, with a Mean Resource volume of 6.47 million barrels.

For clarity, the operations at the site will not involve the process of hydraulic “fracking” for shale gas or shale oil either now or in the future. This part of Lincolnshire does not have the specific rock-formation types that contain shale gas as confirmed by the British Geological Survey in 2013.

David Bramhill, Executive Chairman of Union Jack Oil commented: “We are naturally pleased at this positive decision.  Drilling plans can now be progressed for 2021, providing an additional potentially value adding project to our drilling and development portfolio.”

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.