UK-focused explorer and producer Union Jack Oil announced Tuesday that it has entered into an agreement with Egdon Resources to farm into the conventional prospects of the onshore PEDL209 license (the Laughton Prospect).
PEDL209 is located along the eastern side of the Gainsborough Trough – which is a proven hydrocarbon province in the East Midlands region of England. Under the terms of the farm-in agreement, Union Jack will pay 16.7-percent of the cost of the Laughton-1 well, which is scheduled to be drilled during February 2016, in order to earn a 10-percent economic interest in the license's conventional resources.
The Laughton Prospect is a fault and dip-closed structure mapped on a 2D seismic grid. The carboniferous Westphalian and Namurian contains numerous sandstones which are proven reservoirs in the oilfields within the Gainsborough Trough.
Union Jack said that numerous potential multiple stacked reservoirs will be targeted by the Laughton-1 conventional exploration well. According to the resource estimates provided by the operator, these reservoirs could contain mean recoverable resources of 1.3 million barrels of oil.
In addition to the Laughton Prospect PEDL209 also has two further leads, which are similar dip and fault-closed structures.
Union Jack Executive Chairman David Bramhill commented in a company statement:
"We are pleased to be able to participate in the drilling of the Laughton-1 well which has the potential for discoveries in several stacked reservoirs.
"The company has started 2016 with an active program, including the drilling of the Keddington-5 development well, currently drilling ahead, the soon to be spudded Laughton-1 well and the compilation of a field development plan in respect of bringing the Wressle discovery, of which Union Jack holds an 8.33-percent interest, into production later in the year.
"These activities are all being funded from existing cash resources."
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