Union Jack Oil says operations have now commenced at Wressle site
(UJO ) said Operator, Egdon Resources U.K. Limited, has commenced operations to re-complete and reperforate the well located at the Wressle hydrocarbon development site.
The UK focused onshore hydrocarbon production, development and exploration company holds a 40% economic interest in North Lincolnshire licences PEDL180 and PEDL182.
The decision to recommence operations follows workover rig and associated services and equipment that were successfully mobilised to Wressle (Fig 1) at the beginning of last week.
(Source: Union Jack Oil)
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 Union Jack`s net production by an additional 200 bopd when fully on stream.
Shares in Union Jack Oil have increased by over 15% since the beginning of December 2020. Wressle is believed to be economically robust with an estimated project break-even price oil price of $17.62 per barrel and expected to result in an initial constrained production rate of 500 barrels of oil per day gross, or 200 barrels of oil per day net to Union Jack. Positive news on production at Wressle is positive for UJO as a 40% shareholder in the project.
Reasons to Follow UJO
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.
Follow News & Updates from :
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.