Report Hints at Significant Reserves on UK’s PEDL201

London-based consultancy firm Molten released the results of a technical review on the northern section of UK's PEDL201, raising hopes for significant oil and gas reserves, according to Union Jack Oil and Egdon Resources. 

‘The results of this work indicate that the mean gross unrisked deterministic in place volumetric estimates approximate to 5.4 billion barrels of oil and over 2.7 trillion standard cubic feet (scf) of gas,’ reads the note released on Monday, adding that the report contains no valuation and no risk factors. 

According to Molten, the northern section of PEDL201 should be predominantly rich in oil. At the same time, the consultancy firm clearly stated that there is no certainty about the commerciality of any portion of this resource. 

‘Union Jack’s equity interest in the mean un-risked in place volumes within that shale area would amount to approximately 540 million stock tank barrels of oil initially in place (“STOIIP”) and approximately 270 billion standard cubic feet of gas initially in place (“GIIP”). Molten's estimates of undiscovered STOIIP and GIIP are subject to exploration risk, which may be considerable.’ 

Egdon has a 32.50% interest in, and is operator of PEDL 201. Union Jack holds a 10% interest.

“The interest in onshore conventional and unconventional oil and gas in the United Kingdom is gathering pace throughout our industry. The level of corporate activity within the sector is reaching levels not observed for decades,” David Bramhill, Executive Chairman, commented.