Union Jack Oil plc (AIM: UJO), a UK focused on-shore hydrocarbon production, development and exploration company notes that Rathlin Energy (UK) Limited (“Rathlin”), the operator of PEDL 183, today communicated the following to local residents as part of its participation in the West Newton Community Liaison group.
Union Jack holds a 16.665% interest in this licence containing the West Newton A-1 discovery well and the recently successful West Newton A-2 conventional appraisal well.
Rathlin included the following statements in its communication to local residents:
“Rathlin Energy (UK) Limited has recently completed the drilling operations at the West Newton A site. The West Newton A-2 well was drilled to a total depth of 2,061 m MD into the top of the Westphalian Coal Measures. 28 metres of core was cut and recovered from the primary objective Kirkham Abbey reservoir and wireline logs were also acquired over the formation. The well has been cased and cemented to total depth and has been temporarily suspended, pending further evaluation.
“The drilling rig and associated equipment have been demobilised from the site. Fosham Road/Piper’s Lane, and the associated footpaths, have been re-opened to the public.
“The information acquired while drilling is currently being analysed to inform a well testing programme. Planning permission is in place for an extended well test. Any proposed testing programme would involve much less equipment on site than that required for the drilling programme.
“Recent articles in the local media and market releases from Rathlin’s partners describing potentially the largest onshore hydrocarbon discovery since 1973, have many people in the local area naturally wanting to understand what the development of a commercial oil or gas field in the area might involve.
“We believe that speculating on the nature and size of a commercial development is premature at this stage, but early signs are encouraging. Firstly, the West Newton A-2 well must be completed and tested to gauge the productive potential for oil or gas from the Kirkham Abbey reservoir.
“Secondly, following the testing of the West Newton A-2 well, additional drilling at a new site (West Newton B) will be undertaken to establish the areal extent and continuity of the reservoir formation.
“Oil and gas, by their nature, would have different implications in terms of any potential development.
“Gas is typically gathered from wellsites and delivered by underground pipelines to local facilities or the national grid. Oil or other produced fluids may be trucked from sites to local facilities.
“The number and location of potential sites and number of wells per site required to develop a field would depend on a number of factors including East Riding planning permissions, Environment Agency permits, development plan approval by the Oil and Gas Authority, surface factors such as the location of residences, businesses and road networks and subsurface factors such as reservoir areal extent and effective reservoir drainage.
“Until the West Newton A-2 well is tested and we have an understanding of its productive capability it is premature to speculate on what any potential development may involve.
Once the testing operation commences it will take approximately 4-8 weeks. During operations the site will be manned by both operational and security personnel.
“Once test results are available and have been analysed, we will update our local neighbours and discuss the implications of those test results.
“At this time, Rathlin’s planning permissions and EA permits allow for testing the wells at the West Newton A site. Any further drilling or production is not permitted and has not been applied for.
Current planning permission and EA permits for the West Newton B site allow for site construction, drilling and testing of 2 wells. Additional drilling or production is not permitted and has not been applied for.”
Union Jack Investor Presentation
Further details on PEDL183 and the West Newton gas discovery can be found in the investor presentation that will be used in an investor event starting at 18:30 today and will shortly be made available on the Union Jack website at www.unionjackoil.com.
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