Union Jack Oil notes positive review for West Newton A site extension

Francesca Morgan
Vox Newswire
09:18, 22nd January 2021

Union Jack Oil  (UJO FOLLOW) announced Rathlin Energy, the Operator of PEDL183, the licence which contains the West Newton A-1 gas discovery, has communicated to investors this morning ‘a positive planning update’ to the local residents and the West Newton Community Liaison Group.

The UK focused onshore hydrocarbon development and exploration firm holds a 16.665% interest in PEDL183, located within the Western sector of the Southern Zechstein Basin.

Rathlin noted that it has received a Screening Opinion from the East Riding of Yorkshire Council in response to its screening request for the proposed West Newton A site extension.

The proposed extension of the existing West Newton A (Fig.1) wellsite and associated work programme would provide for testing, appraisal and production from two existing wells. 

In addition to the two wells - WN-A1 and WN-A2 - is the potential for drilling, testing, appraisal and production from up to six new wells on the WNA site over a 25-year period.

Figure 1: Location of PEDL 183

 
(Source: Union Jack Oil) 

The East Riding of Yorkshire Council`s Screening Opinion considers that the proposed development would not comprise EIA (Environmental Impact Assessment) development. 

Rathlin said it will be undertaking public consultation on the West Newton A site development plan over the coming months and ahead of the submission of any formal planning application.

Further positive news for UJO as the shares continue to perform strongly following their purchase of a further 15% in the Biscathorpe project announced last week. Shares in UJO have increased by over 45% since the beginning of December 2020 to open at 0.2p following todays’ announcement.

UJO price chart

Reasons to Follow UJO

UJO is an onshore oil and gas exploration firm with a focus on drilling, development and investment opportunities in the UK hydrocarbon sector, and currently holds interests in 13 licences in areas including, inter alia, the East Midlands, Humber Basin and East Yorkshire.

West Newton

The UK focused onshore hydrocarbon explorer holds a 16.665% interest in PEDL183, containing the conventional West Newton A-1 discovery well and WNA-2 appraisal well. 

West Newton is located at the heart of the Zero Carbon Humber project area, which aims to promote decarbonising technologies across industrial activities in the wider Humber region.

In October 2020, it reported that the onshore West Newton B-1 ("WNB-1") well - the next well following the successful West Newton A-2 ("WNA-2") appraisal well - had been spud. 

Results from the drilling of WNB-1 are expected to inform a subsequent programme of testing to establish the well's productive capability as well as future drill operations.

North Kelsey

In recent months, UJO also increased its stake in the North Kelsey project by acquiring an additional 30% from Egdon Resources, taking its stake in the exploration project up to 50%.  

Further financial obligations will be equal between Union Jack and Egdon Resources, in line with both parties’ 50% stake in the North Kelsey Prospect which is located in Lincolnshire. 

The North Kelsey Prospect is a conventional oil prospect along trend from and analogous to the Wressle oil development, which lies around 15 kilometres to the northwest. 

The UK- focused group said the prospect has been mapped from 3-D seismic data and has the potential for oil in up to four stacked conventional Carboniferous reservoir targets.  

David Bramhill, Executive Chairman of UJO, described North Kelsey as “a low cost, drill-ready onshore acquisition for Union Jack in our focus area, consistent with our strategy.” 

He said a further stake in the project increases the group’s exposure to a “potentially value adding project” as well as expanding UJO’s balanced drilling and development portfolio. 

Subject to a successful farm-out, North Kelsey-1 is expected to be drilled during 2021. 

Wressle 

Operator, Egdon Resources U.K. Limited, commenced operations to re-complete and reperforate the well located at the Wressle hydrocarbon development site last week.

The Company highlighted that operations are expected to be completed to enable the Ashover Grit reservoir to be flowed prior to the end of January 2021, as previously advised.

The Ashover Grit reservoir is expected to produce 500 barrels of oil per day at a constrained rate, increasing UJO’s net production by an additional 200 bopd when fully on stream.

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Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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