Union Jack Oil (UJO) the UK focused on-shore hydrocarbon company, on Tuesday agreed to sell its 7.5% interest in its Holmwood licence PEDL143 to UK Oil & Gas PLC.
It is to sell the license in exchange for £112,500 in cash which Union Jack Oil is then to use to purchase shares in UK Oil & Gas.
David Bramhill, Executive Chairman of Union Jack said: "Payment in UKOG shares allows Union Jack to not only benefit from UKOG's increased interest in Holmwood, but also exposure to UKOG's wider Weald Basin assets and other projects."
"Our modest investment in Holmwood was made with a view to capitalising on the increasing activity within the Weald Basin. This agreement allows Union Jack to now concentrate totally on our focused areas of the East Midlands, Humber Basin and East Yorkshire.”
“Our focused areas hold working interests in material and potentially company-changing assets including: 16.665% in West Newton, where drilling is set to commence in the very near future; 27.5% of Wressle that contains a discovery awaiting planning permission for development; and 22% of Biscathorpe that requires seismic reprocessing to provide information following recent drilling and for a potential side-track well in due course.”
“In addition, Union Jack's 20% working interests in the producing Keddington and Fiskerton Airfield oil fields provide us with oil revenues and exposure to additional workover and drill targets in our focused areas.”
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