24 July 2019:Union Jack Oil plc (AIM: UJO), a UK focused onshore 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.
“Following the successful drilling of the West Newton A-2 well, Rathlin Energy (UK) Limited, (Rathlin), is progressing plans to test WNA-2 in accordance with the existing planning permission.
Based on the analysis of the data gathered while drilling, it is uncertain whether the well may flow oil or gas, or a combination of both. Furthermore, the composition of the hydrocarbons would need to be determined during the well test.
Given the uncertainty of the hydrocarbon composition, and to ensure that Rathlin has the appropriate consents in place, an application has been submitted to East Riding of Yorkshire Council for a Hazardous Substances Consent which would allow for the storage of up to 199 tonnes of crude oil which falls in category P5b.
The Hazardous Substances Consent would not be required if controlled quantity thresholds are not exceeded. This is 50 tonnes for oil with a composition classified within category P5b.
During the well test, any gas flowed to the surface will be incinerated onsite in an enclosed burner and any produced oil will be transported by a licenced haulier to a local refinery.
The well test should take approximately 4-8 weeks to complete. Initial works to set up the well test will be undertaken during daytime hours (07:00-18:00) and the flow testing operations will be conducted 24 hours a day.
The current planning permission for the WNA site is a temporary permission which allows for the drilling and testing of up to two wells but does not provide for the continued production of hydrocarbons after the well test.
Any future plans for the site would be determined based on the information gained through the well test and obtaining the necessary regulatory permissions.”
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