David Bramhill, Executive Chairman of Union Jack Oil (UJO.L) Podcast

Union Jack Oil plc (AIM: UJO) announced earlier this month, update on operations and progress at West Newton in respect of the planned near term drilling of the West Newton B-1 (WNB-1) appraisal well, and its subsequent testing, and the completion of the Extended Well Test at the West Newton A-2 (WNA-2) discovery well.


 

 

Oil and Gas Authority Approval for Further PEDL180 PEDL182 Wressle Acquisition

Union Jack holds a 16.665% interest in PEDL183 containing the WNA-1 and WNA-2 discoveries and the Operator is Rathlin UK Limited.

Highlights:

· Significant progress made at West Newton B site while successfully managing Covid-19 related restrictions

· Initial drilling operations at WNB-1 expected to commence in the next few weeks

· Combined testing programme at both WNB-1 and WNA-2 to follow WNB-1 drilling

David Bramhill, Executive Chairman of Union Jack, said:

“The drilling of the WNB-1 well is important for the West Newton project for appraisal of the Kirkham Abbey formation that was penetrated successfully in A-2 well as well as targeting the deeper and potentially significant Cadeby prospect. We are delighted that the Operator has managed to make excellent progress with the B site operations despite the extreme challenges thrown up by events since March 2020. Subsequent to drilling WNB-1, we look forward to carrying out testing at both WNA-2 and WNB-1.

“We are fortunate to be in a position where the West Newton JV is fully funded for its planned drilling and testing activities.

“The potential of the onshore West Newton project to Union Jack is significant due to its oil and gas volumes and reduced onshore development costs compared to alternatives resulting in economics that are highly favourable and a very valuable project from an industry perspective.

“I look forward with enthusiasm over the coming months to reporting progress on WNB-1 drilling activities that will be followed by well testing at both sites.”

OGA approval for PEDL253 Biscathorpe Acquisition

Base Case: – Liquids: 146.4 million barrels (“mmbbl”) of oil initially in-place (“OIIP”)

– Gas: 211.5 bcf of gas initially in-place (“GIIP”)

Upside Case: – Liquids: 283 mmbbl OIIP

– Gas: 265.9 bcf GIIP

The deeper Cadeby prospect offers considerable potential additional upside to the potential value of West Newton and the planned WNB-1 well will target this zone at an optimal position.

At WNA-2, a permit variation from the Environment Agency was received in late April 2020, allowing the Operator to recommence the well test utilising a pumpjack and a smaller incinerator unit. However, activities were delayed due to Covid-19 related issues, notably restrictions of the international movement of equipment and personnel. Whilst these issues are now broadly resolved, the significant progress made at the B site during this period means it is now more efficient to drill the WNB-1 well first, and subsequently to carry out a testing programme at both WNA-2 and WNB-1.

This is expected to result in cost savings via shared testing equipment, and more importantly, allows the drilling of the WNB-1 well to proceed without any delays resulting from testing operations at the A-2 site as it would not be prudent to run these activities concurrently during this period.


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