British explorer Union Jack has struck a farm-in deal with Egdon Resources to gain a stake in a UK onshore licence in return for part-funding an upcoming exploration well.
Union Jack will carry 16.66% of the costs of the Wressle-1 probe to earn an 8.33% interest in the Egdon-operated PEDL 180 licence on the western margin of the Humber basin in Lincolnshire, which is believed to be on trend with a nearby oilfield and discovery.
In the event of a discovery, Union Jack will gain an additional 8.33% stake in the field that may extend into the adjoining PEDL 182 licence.
The probe is targeting gross mean prospective resources at Wressle of 2.1 million barrels and is set to be spudded in the third quarter.
Following the deal, still subject to approval by the authorities, Egdon will hold a 25% licence stake as operator, with the remaining partners Celtique Energie and Europa Oil & Gas on 33.33% and 33.34% respectively.