Union Jack Oil has agreed to acquire an additional 35% stake in PEDL005 Keddington Filed (block TF38b) and 15% in Louth prospect licence PEDL339 (block TF38c) from Terrain Energy, as released on 9 March 2020. Deal consideration is GBPS 200,000 (US$ 261,000) plus GBPS 35,000 for site activities from 1 January 2020. Deal is subject to OGA approval and will increase Union Jack's stake to 55% in Keddington and 35% in Louth. Keddington was discovered in Late Carboniferous (Westphalian) sands by L47/16-4 Keddington 1 (1998, Candecca, 2,506m) and began production in October 1998 (gas flow commenced Aug 2009). Current production is 28 bo/d, and gross remaining mean contingent resources is 567,000 bo, with permitting for up to two further development wells and has had a site lease extension to 2029. Keddington operator has also identified the near-field exploration opportunity Keddington South which has a gross mean prospective resources of 635,000 bo. PEDL005 also covers (not included in deal) Saltfleetby and North Somercotes blocks TF38a, TF39a, TF48a, TF49a and TF49b. The Louth prospect in PEDL339 has gross mean prospective resource of 600,000 bo and extends from PEDL005. The adjacent blocks are located in Humber Basin on the E coast of North England. Pre-deal PEDL005 - TF38b Keddington partners are Egdon Resources UK Ltd (45% + Op), Terrain Energy Ltd (35%) and Union Jack Oil Plc (20%). PEDL339 pre-deal completion partners are Egdon (65% + Op), Terrain (15%) and Union Jack (20%).
UJO has taken on a further 35% from partner Terrain Energy in PEDL 005(R) (Keddington oilfield) for GBP 200,000, pushing its stake to 55% whilst operator Egdon retains its 45%. In parallel, UJO is also acquiring 15% in adjacent PEDL 339 (Louth + North Somercotes prospects).