Union Jack Oil plc has reached agreement with Egdon Resources plc and Montrose Industries Limited to earn an additional 2% interest in PEDL253, located in Lincolnshire which contains the Biscathorpe Prospect. On completion of this agreed farm-in Union Jack will hold a 12 per cent. interest in PEDL253.
The Company originally acquired a 10.00% economic interest in PEDL253 in March 2013 in return for agreeing to pay 20% of the costs of the Biscathorpe-2 well. Under the terms of this new farm-in, Union Jack will earn an additional 1.2% interest from Egdon and 0.8% from Montrose under the same terms as above pro-rata.
Planning consent was granted for the Biscathorpe-2 exploration well in March 2015 and a conventional well is expected to be drilled in Q4 2015.