Union Jack Oil plc has acquired its first interests in the North Sea with a 2.5% cash generating royalty interest for $130,000 (£93,730) in the Claymore, Piper and Scapa oil fields.
THREE FIELDS
The acquisition from Cambridge Petroleum Royalties Ltd is a part of the royalty unit over 20% of the revenues from oil and gas production.
The three oil fields, known collectively as the Claymore and Piper complex, lie 161km north east of Aberdeen in the central North Sea.
The complex has produced more than 1.8 billion barrels of oil and 262 billion cubic feet (bcf) of gas to date, of which some 6 million barrels of oil and 2bcf gas was produced in 2020.
The operator is Repsol Sinopec Resources UK Ltd which is a joint venture between Repsol and Sinopec (China Petroleum & Chemical Corporation).
Union Jack said its acquisition was “attractive, cash generating and high yielding”, and consistent with its objectives to become a mid-tier producer.
The company added it also had a second material transaction at an advanced stage and planned further transactions for 2021.
Union Jack’s main interests have so far been onshore Lincolnshire, East Yorkshire and Nottinghamshire.
CLAYMORE
The complex, within block 14/19, comprises two fixed, steel bridge-linked platforms in 110 metres of water.
Included is the Scapa oilfield developed as a sub-sea tie-back to the Claymore platform, which produced first oil in 1985.
Claymore also provides an up and over transportation service to Golden Eagle.
Hydrocarbons are transported via a 14-inch oil export pipeline from Golden Eagle and delivered to the Claymore pipeline.
PIPER
The Piper complex, initially authorised for development in 1974, lies within block 15/17 some 193km north east of Aberdeen.
The Piper B platform was installed in 1992 and production began in 1993. Piper B’s process facilities separate production from the Piper, Saltire, Chanter and Tweedsmuir reservoirs into oil, natural gas liquids and dry gas.
The platform receives gas for fuel gas provision from the Frigg gas network when required.
The Scapa field is in UK North Sea block 14/19 in the Witch Ground Graben, 112 miles northeast of Aberdeen.
Production from the Scapa field is exported through the existing Claymore and Piper infrastructure.
OBJECTIVE
Union Jack executive chairman David Bramhill described the investment as compelling and without capital and operating costs.
“This initial acquisition represents our first royalty investment over the Claymore and Piper complex’s future oil and gas revenues and where we have the objective of making further investments during 2021.
“The objective of Union Jack remains to become a mid-tier producer and we see that is now within our grasp with development and free-flowing oil demonstrated at Wressle, the execution of the upcoming well tests at West Newton and planned drilling at Biscathorpe.
“All these projects are at an advanced stage and evidence significant progress towards our aim.”
Repsol Sinopec Resources UK Ltd was previously known as Talisman Sinopec Energy UK (TSEUK).
Repsol Sinopec Resources UK Ltd is the results of the acquisition, in 2015, by Spanish company Repsol, of the global assets of the former Canada’s Talisman Energy Inc, including its 51% equity interest in the joint venture TSEUK.