Onshore explorer Union Jack Oil has identified potential shale resources in its 10% owned Midlands asset.
An independent review indicated an estimated 5.4 billion barrels of oil and more than 2.7 trillion standard cubic feet (scf) of gas in the PEDL201 licence in Nottinghamshire and Leicestershire, the firm said.
The report highlighted areas in the northern section of the licence with significant thicknesses of Upper and Lower Bowland Shale, believed to be primarily oil-bearing and of “significant commercial value”.
“The board of directors considered it prudent to have the company’s interest in PEDL201, where there is known shale potential, independently reviewed to identify the unconventional resource potential,” said David Bramhill, Union Jack’s executive chairman.
“This exercise has proved to be very worthwhile with compelling ‘in place’ un-risked scoping volumetric estimates for both shale oil and shale gas.
“However, the company’s immediate priority remains to unlock the conventional exploration potential within our current licence interests. We look forward to the imminent drilling of two exploration wells, Wressle-1 and Burton on the Wolds-1, both targeting conventional reservoir objectives.
“In addition, the company intends to be involved in bidding for certain interests at the forthcoming Onshore UK Licensing Round, expected to be announced by DECC later in 2014.”
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