It’s all to play for this month on Union Jack Oil (LON: UJO) as Egdon Resources spudded their Biscathorpe-2 conventional drill, near Louth in Lincolnshire, early this week. UJO hold 22% of a drill that could net them £24,000,000. That’s a tripling of their current SP.
Biscathorpe is one of the UK’s largest onshore unappraised conventional oil prospects with Mean Prospective Resources of 14 million barrels of oil. It’s one of Union Jack’s near-term, high-impact projects that if successful will be transformational not only for the Company but for the value in share-price. Any discovery here will almost certainly send their SP into orbit, there’s also the prospect that, “In addition to the defined structural closure, stratigraphic trapping, if present, could lead to significant upside for oil resources”. What that means is this. There could be more oil than 14M barrels discovered with guesstamates of over 40,000,000 barrels currently doing the rounds. The value drivers and inflection points of Biscathorpe are many. It’s only a question of time before the herd arrives.
What most oil & gas traders/investors are missing is that the drill at their West Newton A-1 UK onshore is a gas discovery, (UJO 16.66%) Gas). It’s an appraisal well. Sources indicate that the drill site is well underway and will be spudded in Q1 2019. The Best Estimate Contingent Resource is 189 Bcf of gas which comes in at circa 31/32 million barrels of oil equivalent as assigned to West Newton in their CPR. West Newton is on-trend with the prolific offshore Hewett gas complex and is ‘drill ready’. I’m expecting that there’ll be some form of overlap here with both drills up and running at the same time. Probably as Biscathorpe comes to conclusion West Newton will be spudded.
There’s some big money investors in this company. Not least the infamous ‘Lord Chris Oil’ who recently upped his stake to 7%. That’s a thumping £700,000. A vote of confidence if ever there was one. Union Jack are debt free and fully funded. As an investor you can’t ask for much more.
Target 0.25pish on Biscathorpe success and well over 0.50p on West Newton. Could hit 1p on both assets coming in.
Viva
Dan
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Great write up. Union J are the real deal man. Biscathorpe will put 300% on our sp . Raithlin gas will get us up to 1.5p. You’d have to be dumb to not buy in.
Best oil play on the Aim at this moment in time. Tipped for greatness on so many sites. Can see the sentiment catching on next week when oil discovery starts to leak out.
Thanks you BMD. Better this man is onside than pissing all over us. Angus Energy Laughing my gonads itf