Union Jack Oil loans £1mln to Egdon as Wressle field start-up is deferred to January

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Union Jack Oil PLC (LON:UJO) told investors that the final commissioning of the Wressle oil field, in near Scunthorpe, Lincolnshire, has been deferred to January.

It comes amidst anticipated supply chain disruption including ongoing coronavirus (COVID-19) pandemic related restrictions and the upcoming festive holidays.

In a statement, Union Jack said Wressle is at an advanced stage with site reconfiguration works completed and the installation of surface facilities currently ongoing.

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Storage tanks and the inspection gantry have been installed meanwhile the electrical and control system installation is at an advanced stage.

All remaining equipment is expected in December, despite challenges posed by the impact related to COVID-19 restrictions for certain suppliers.

Mobilisation of a workover rig is slated immediately in the New Year, and it is expected that the well workover will be completed with initial oil flows later in January.

Additionally, Union Jack has agreed to loan Wressle partner Egdon Resources Ltd (LON:EDR) £1mln over an 18-month term, carrying an interest rate of 11% – payable quarterly, beginning at the earlier of Wressle producing or April 1.

The loan is secured against Egdon’s 25% interest in the Wressle field.

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