Industry

Union Jack Oil adds to stake in Lincolnshire oil exploration

190106 biscathorpe eddy thornton 2

Biscathorpe oil exploration site, Lincolnshire, 6 January 2019. Photo: Eddie Thornton

Union Jack Oil announced this morning it had increased its interest in the Biscathorpe oil site in Lincolnshire.

The deal, costing £115,000, buys 3% of Montrose Industries’ stake in the exploration licence PEDL253. It takes Union Jack’s interest in the licence to 30%.

Earlier this month, Union Jack announced it was paying £500,000 to become the largest single investor in the Wressle oil field in North Lincolnshire, with a 40% stake.

In March 2020, it increased its stake in the Keddington oil field to 55% after buying out Terraiin Energy’s investment.

Drilling at Biscathorpe in 2019 failed to find the target formation and the well was sealed.

But the partners in the licence, which also include Egdon and Humber Oil & Gas, said in March 2020 they were optimistic about finding oil with a sidetrack well at Biscathorpe. They said a sidetrack could explore the Basal Westphalian sandstone and the deeper Dinantian Carbonate reservoir.

The executive chairman of Union Jack Oil, David Bramhill, said:

“We are pleased to have been offered this opportunity to increase our interest to 30% in Biscathorpe, where a potentially material and commercially viable hydrocarbon resource remains to be tested.”

He said recent analysis indicated that PEDL253 remained “one of the UK’s largest onshore un-appraised conventional hydrocarbon licences”.

“Dispute resolved”

A dispute between Egdon Resources and Humber Oil & Gas over payments for work at Biscathorpe has been settled, according to statements published today.

Egdon 2019 annual report said Humber had defaulted on a £0.78m payment. Egdon said it had begun proceedings to recover the money owed.

Egdon said this morning it had signed what it called a “legally-binding and confidential settlement” with Humber.

Egdon’s managing director, Mark Abbott, said:

“We are pleased that agreement has been reached with Humber, enabling the project to now move forward with full support from all partners.”

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