TIDMUJO
RNS Number : 0561B
Union Jack Oil PLC
29 September 2022
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
29 September 2022
Union Jack Oil plc
("Union Jack" or the "Company")
PEDL183 Competent Person's Report by RPS Energy
Contingent Resources for West Newton Kirkham Abbey Formation
Prospective Resources for Ellerby, Spring Hill and Withernsea
Prospects
Union Jack Oil plc (AIM: UJO) a UK focused onshore hydrocarbon
production, development and exploration company is pleased to
provide summary details from a Competent Person's Report ("CPR" or
"Report"), dated September 2022, prepared by RPS Energy Canada Ltd
("RPS" or "Competent Person") evaluating the resources of PEDL183,
as of 30 June 2022 ("Effective Date").
HIGHLIGHTS
-- Kirkham Abbey Best Case Gross Unrisked Contingent Technically
Recoverable Sales Gas at West Newton is estimated to be 197.6
billion cubic feet ("bcf")
-- Geological Chance of Success of Kirkham Abbey estimated to be 85.5%
-- Gross NPV10 risked value of Kirkham Abbey Contingent Gas
Resource is US$396.1 million post tax
-- Substantial additional Prospective Resource figures for Ellerby, Spring Hill and Withernsea
-- Union Jack fully funded for the drilling of the horizontal well and testing in 2023
Executive Chairman of Union Jack, David Bramhill commented: "The
conclusions of the CPR signal a highly valuable onshore project
with resources comparable to those usually reported from offshore
developments and at a time when forward gas pricing is higher than
oil . Such a significant domestic onshore gas resource as West
Newton will be an important transition fuel in helping the UK
achieve its 2050 Net Zero targets.
"The Geological Chance of Success of 85.5% in respect of the
Kirkham Abbey formation at West Newton is amongst the highest that
I have ever observed.
"I look forward to the commencement of the drilling of a large
scale horizontal well during 2023, with potentially, a
Company-making result to complement our successful onshore Wressle
oil production development, which has already financially
transformed Union Jack and propelled the Company into a profitable
entity.
"Union Jack is fully funded for the drilling of the horizontal
well and all testing operations where third-party technical
analysis has determined that using long horizontal development
wells and oil-based muds should maximise hydrocarbon
productivity.
"We look forward to 2023 with a seriously high level of positive
anticipation on many fronts."
PEDL183 COMPETENT PERSON'S REPORT
The CPR was prepared on behalf of the operator Rathlin Energy
(UK) Limited ("Rathlin").
While Union Jack holds a 16.665% economic interest in PEDL183,
note that the Report presents net data based on Rathlin's 66.67%
economic interest in PEDL183.
An abridged version of the Report is presented herein, and the
full CPR can be viewed on the Company's website
www.unionjackoil.com
In the preparation of the Report, RPS has adopted the Petroleum
Resources Management System ("PRMS") standard and used definitions
contained therein. A glossary of all technical terms used is
included in the Report.
RPS has approved this RNS.
WEST NEWTON GROSS UNRISKED TECHNICALLY RECOVERABLE SALES
Category Gross Technically Recoverable
---------
Gas Liquids
(bcf) (mbbl)
--------- -------------- ----------------
1C 99.7 299.4
-------------- ----------------
2C 197.6 593.0
-------------- ----------------
3C 393.0 1,178.9
-------------- ----------------
Note: Net data for Union Jack can be calculated by applying its
16.665% economic interest to the above gross data.
WEST NEWTON GEOLOGICAL CHANCE OF SUCCESS
Asset Source Charge Migration Reservoir Trap Seal Geological
Rock COS
------------- ------- ------- ---------- ---------- ----- ----- -----------
West Newton 1.00 1.00 1.00 0.90 0.95 1.00 0.855
------- ------- ---------- ---------- ----- ----- -----------
WEST NEWTON RISKED ECONOMIC SUMMARY
Resource Gross Risked Net Present Value Post Tax (US$ million)
Category
----------
0% 5% 10% 15% 20%
---------- ------------- ------------- ---------- --------- ---------
1C 729.9 371.8 220.5 141.0 93.3
------------- ------------- ---------- --------- ---------
2C 1,593.1 702.1 396.1 250.2 166.6
------------- ------------- ---------- --------- ---------
3C 3,387.7 1,329.5 712 436.5 286.2
------------- ------------- ---------- --------- ---------
Note: The above gross data has been derived from data in the
Report. Net data for Union Jack can be calculated by applying its
16.665% economic interest to the above gross risked data.
ELLERBY, SPRING HILL AND WITHERNSEA PROSPECTS
Gross Petroleum Initially in Place Low Best High
(bcf)
------------------------------------ ----- ------ ------
Ellerby 87.1 204.1 473.5
----- ------ ------
Spring Hill 90.8 189.2 394.4
----- ------ ------
Withernsea 43.4 105.5 254.9
----- ------ ------
Note: Net data for Union Jack can be calculated by applying its
16.665% economic interest to the above gross data.
PROSPECTIVE RESOURCES RECOVERABLE SALES GAS
Gross Recoverable Sales Gas (bcf) Low Best High
----------------------------------- ----- ------ ------
Ellerby 56.4 132.2 310.0
----- ------ ------
Spring Hill 58.2 122.6 257.7
----- ------ ------
Withernsea 27.6 68.7 167.2
----- ------ ------
Note: Net data for Union Jack can be calculated by applying its
16.665% economic interest to the above gross data.
GEOLOGICAL CHANCE OF SUCCESS ELLERBY, SPRING HILL AND
WITHERNSEA
Asset Source Charge Migration Reservoir Trap Seal Geological
Rock COS
------------- ------- ------- ---------- ---------- ----- ----- -----------
Ellerby 1.00 1.00 1.00 0.60 0.80 0.90 0.432
------- ------- ---------- ---------- ----- ----- -----------
Spring Hill 1.00 1.00 1.00 0.60 0.80 0.90 0.432
------- ------- ---------- ---------- ----- ----- -----------
Withernsea 1.00 1.00 1.00 0.60 0.80 0.90 0.432
------- ------- ---------- ---------- ----- ----- -----------
For further information, please contact
Union Jack Oil plc info@unionjackoil.com
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Matthew Johnson
Richard Hail
Caroline Rowe
Shore Capital +44 (0)20 7408 4090
Joint Broker
Toby Gibbs
Iain Sexton
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END
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