Union Jack Oil (AIM:UJO ) said the gross sum of c. £403,000 has now been received by Egdon Resources in regards to the Wressle development in North Lincolnshire.
The UK-focused hydrocarbon firm holds a 27.5% economic interest in licence PEDL180 and PEDL182 held at the Wressle hydrocarbon development, of which Egdon Resources (EDR ) operates.
The development was previously granted planning consent on appeal on 17 January 2020 with an application filed by Egdon for costs against North Lincolnshire Council (‘NLC’).
Today, the operator said that the c. £403,000 has now been received from the NLC as settlement in full of these costs and is to be divided between the partners proportionately.
Meanwhile, David Bramhill, Executive Chairman of Union said “excellent progress” is being made at Wressle and first oil is expected during the second half of 2020.
Shares in Union Jack Oil were trading 8% higher at 0.135p on Wednesday morning.
Mark Abbott, Managing Director of Egdon Resource, said that development at Wressle had continued to make good progress despite the current challenging operating environment.
Following NLC approval, the group said it has now completed the installation of four groundwater monitoring boreholes on the Wressle site.
These boreholes will be subject to monitoring and analysis throughout the life of the site, with an initial three months of sampling to determine baseline groundwater quality.
Abbott said the boreholes were “an important step in the progress to first oil” which Egdon anticipates will increase its production by 150 barrels of oil per day.
Currently, the project remains economically robust with an estimated break-even oil price of US$ 17.62 per barrel.
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