Onshore oil and gas exploration and production company Union Jack Oil plc has reached an agreement with Egdon Resources plc to acquire an 8.33 percent economic interest in PEDL182, located in Lincolnshire, UK, which contains the Broughton North Prospect.
Under the terms of the agreement Union Jack will pay Egdon 12.495 percent of the cost of any planned Broughton North well and associated agreed back costs of $90,575 (GBP 64,000). The back costs relate primarily to the acquisition of 3D seismic acquired during 2012 over the Broughton North Prospect and other areas within PEDL182.
Union Jack`s share of funding of the Broughton North well will be paid for by hydrocarbon sales from the Wressle-1 commercial production, which is expected to commence during the fourth quarter of this year. The assignment of the interest in PEDL182 to Union Jack is subject to approval from the Oil and Gas Authority.
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