Union Jack Oil PLC (LON:UJO) has stuck a deal to acquire the onshore UK assets of Nautical Petroleum, a Cairn Energy PLC (LON:CNE) subsidiary.
It delivers stakes in a number of onshore oil projects – including 10% of the Keddington oil field, 10% of the Louth prospect, 16.67% of the Kirklington oil project and 16.67% of the historic Dukes Wood oilfield. All the assets are operated by UJO partner Egdon Energy Ltd (LON:EDR).
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The AIM-quoted explorer is paying just £25,000 to acquire the asset portfolio from the Cairn subsidiary, and it is due to receive production proceeds from Keddington from an effective date of September 1.
UJO already has a 10% stake in Keddington which in the last financial year generated £22,119 of revenue for the group.
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"The opportunity for Union Jack to acquire Cairn Energy`s UK onshore hydrocarbon portfolio which comprise assets we hold in high regard, at nominal cost is an excellent result,” said David Bramhill, UJO chairman.
He added: “The assets acquired are all located in Union Jack`s core area of interest in the East Midlands which include additional interests in the producing Keddington oilfield and the drill-ready prospects, subject to planning, at Louth and North Somercotes.
“This acquisition is a perfect fit to the company`s existing portfolio at minimum cost while allowing Union Jack to focus on growing its production and exploration business."