Union Jack Oil said the Oil and Gas Authority (OGA) has now approved the acquisition by the company of a further 3.34% interest in PEDL180 and PEDL182 from Europa Oil & Gas Ltd.
These licences contain the Broughton North Prospect situated in PEDL182 and the Wressle-1 discovery well from which first commercial oil is expected to flow at an estimated constrained rate of 500 barrels of oil per day gross in early 2017.
Union Jack now holds an 11.67% interest in both licences following completion of this transaction.
The consideration for the acquisition was £600,000 for the additional 3.34% economic interest.
The Company`s cash balance following payment of the Consideration is about£2m and the Company is fully funded for its other committed projects including the drill-ready Holmwood-1 and Biscathorpe-2 conventional wells and ongoing development costs for Wressle-1 and remains debt free.