Project Profile
Location: Within the Humberside Platform, nearby Crosby Warren field, onshore UK
Reserves: 6.7 million barrels of oil
Drilling Depth: 2,300 metres
PEDL241 is located onshore UK within the proven hydrocarbon fairway of the Humberside Platform. The nearby Crosby Warren oilfield and the Brigg oil discovery are productive from Upper Carboniferous Namurian aged reservoirs. The North Kelsey Prospect, a well defined tilted fault block mapped from 3D seismic is contained within the licence area of PEDL 241. Based on offset well data, potential exists for four separate stacked reservoir sequences to be hydrocarbon bearing. The subsurface target location to evaluate the exploration of the North Kelsey Prospect has been defined and a surface drilling location has been identified from which a vertical well can be drilled. Drilling operations are planned to commence in late Q4 2013 or Q1 2014 subject to receipt of planning and other consents. The mean combined Prospective Resource volume for these four reservoir objectives, as calculated by Egdon is estimated to be 6.7 million barrels of oil. Under the terms of the agreement Union Jack will pay 20% of the cost of the North Kelsey well to earn a 10% interest from Egdon. Following completion of the transaction the interested parties in licence PEDL241 will be as follows: Egdon Resources U.K. 40%, Celtique Energie Petroleum 50% and Union Jack Oil 10%. Further to the PEDL241 agreements, Union Jack has signed a Letter of Intent with Egdon which gives the Company an option to enter into a second farm-in agreement for a further 5% Participating Interest in PEDL241 under the same terms as above. The Letter of Intent will terminate on 31 July 2013 should the option not be exercised. On June 2015, Union Jack Oil has reached agreement with Celtique Energie Petroleum to acquire an additional 10% interest in Lincolnshire Licence PEDL241 for a nominal consideration and without promote. Following completion of the transaction (and a separate transaction between Egdon Resources U.K. and Celtique) the interests in PEDL241 and the planned North Kelsey-1 well will be Union Jack Oil 20%; Egdon Resources U.K. 80% (Operator).
Operators:
Egdon Resources U.K.: Operator with 80% interest
Union Jack Oil: 20% interest