TIDMUJO
RNS Number : 5197D
Union Jack Oil PLC
20 February 2020
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement
20 February 2020
Union Jack Oil plc
("Union Jack" or the "Company")
Update on West Newton Activity Programme
Union Jack Oil plc (AIM: UJO), a UK focused onshore conventional
hydrocarbon production, development and exploration company is
pleased to provide an update regarding the planned work programme
at West Newton within the PEDL183 licence area onshore UK covering
the re-commencement of the Extended Well Test ("EWT") at the
successful West Newton A-2 well site and the proposed commencement
of appraisal drilling operations at the separate West Newton B-1
well site.
PEDL183 covers an area of 176,000 acres and is situated in East
Yorkshire within the onshore UK section of the Southern Permian
Basin. Union Jack holds a 16.665% interest in this licence, which
contains the West Newton A-1 discovery well and the West Newton A-2
appraisal well, with reservoirs within the Permian Zechstein
geological group, in particular the Kirkham Abbey geological
formation.
West Newton A-2 Test
Following the successful drilling of the A-2 well as announced
by the Company on 17 June 2019, the EWT operations were paused in
late August 2019 in order to design a test that was better suited
to evaluate the significant oil column encountered in the A-2 well,
as opposed to the original intention to test predominantly gas.
This alternative test has been designed by Rathlin Energy (UK)
Limited ("Rathlin" or the "Operator"), and all necessary equipment
has been identified to recommence the EWT.
The redesigned test requires that the Operator obtains
regulatory approvals prior to the recommencement of the new EWT.
Rathlin is actively engaged with the relevant regulatory bodies in
respect of this process.
The Health and Safety Executive's ("HSE's") 21-day Borehole
Sites and Operations Regulations notification period has been
satisfied with no objections raised by the HSE. Subsequently,
Rathlin has now filed a revised operating plan to the Environment
Agency ("EA") for approval.
Following EA approval, the Operator will notify the Oil and Gas
Authority in respect of the recommencement of the EWT.
West Newton B-1 Appraisal Drilling
The process for the commencement of drilling operations at the B
site are independent of the EWT at West Newton A-2.
The bottom hole drilling location for the B-1 well has been
finalised and preparations are currently underway for the works
required for the commencement of operations at the B site, which
will begin during Q2 2020.
Two wells are permitted to be drilled from the West Newton B
site. The first well drilled from the B site, West Newton B-1, is
designed to further appraise the Kirkham Abbey formation, and to
test the deeper Cadeby formation at its optimum location,
particularly given the encouraging results retrieved from the West
Newton A-1 and A-2 wells.
David Bramhill, Executive Chairman of Union Jack commented:
"All the results to date continue to support our belief that
West Newton is a large-scale, conventional, onshore oil and gas
development asset.
"We remain on track in our pursuit to obtain final regulatory
approval for the recommencement of the EWT at West Newton A-2.
Comfort can be gained by the fact that no objections were raised by
the HSE during its review. Union Jack expects that the EA
determination will require 4 - 6 weeks to facilitate.
"Progress continues to be made in respect of the appraisal
programme, particularly, the drilling of the West Newton B-1
well.
"Union Jack has already met its financial commitments in respect
of funding the EWT on West Newton
A-2 and, with cash resources in excess of GBP6.5 million, we are
more than adequately funded for the drilling and testing of the
West Newton B-1 well and the EWT on the B-2 well.
"Outside of the West Newton work programme, we are also funded
for our other committed projects in our portfolio in respect of our
2020 work programme where activity is dominated by the development
of the Wressle discovery (PEDL180/182), where planning consent for
the development was granted in January 2020, and also includes
appraisal activity at Biscathorpe (PEDL253).
"Union Jack intends to report separately on progress at both
Wressle and Biscathorpe following planned meetings with the
operator during February and March 2020.
"We look forward to updating shareholders as soon as
practicable."
Competent Person's Statement
In accordance with the "AIM Rules - Note for Mining and Oil and
Gas Companies," the information contained within this announcement
has been reviewed and signed off by Graham Bull, Non-Executive
Director, who has over 46 years of international oil and gas
industry experience.
For further information, please contact:
Union Jack Oil plc +44 (0)7801 540 358
David Bramhill
SP Angel Corporate Finance
LLP +44 (0)20 3470 0470
Nominated Adviser and Broker
Richard Morrison
Richard Hail
Stephen Wong
Blytheweigh Communications
Limited +44 (0)20 7138 3204
Financial PR
Tim Blythe
Megan Ray
Madeliene Gordon-Foxwell
Cassiopeia Services Ltd +44 (0)7949 690 338
Public Relations
Stefania Barbaglio
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END
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