TIDMUJO
RNS Number : 7541T
Union Jack Oil PLC
05 July 2018
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
5 July 2018
Union Jack Oil plc
("Union Jack" or the "Company")
New Comprehensive Planning Application Submitted for Wressle
Development
Union Jack Oil plc (AIM: UJO), a UK-focused onshore hydrocarbon
production, development and exploration company, notes the
announcement released today by Edgon Resources plc, confirming that
a new comprehensive planning application in respect of the
development of the Wressle oil field has been submitted to North
Lincolnshire Council.
Commenting, David Bramhill, Executive Chairman of Union Jack,
said:
"The operator has today submitted a comprehensive planning
application on behalf of the joint venture partners for the
development of the Wressle oil field.
Wressle is material to Union Jack and the economic impact of
establishing commercial oil production will be transformative for
our Company.
Considerable work has been carried out to address all the issues
identified previously. As part of our ongoing belief in the
development of Wressle, Union Jack reaffirmed its support in June
2018 by acquiring a further 12.5% interest, increasing our interest
to 27.5%*.
Union Jack also fully supports the operator's proposal in
respect of a community liaison group and a community fund to ensure
the local community are kept fully informed and share in the
benefits of the Wressle development.
Note (*): Transaction has obtained Oil & Gas Authority (OGA)
approval but is subject to completion.
An extract of the announcement today by Egdon Resources plc is
attached.
For further information, please contact:
Union Jack Oil plc +44 (0) 7787 160 682
David Bramhill
SP Angel Corporate Finance LLP +44 (0) 20 3470 0470
Nominated Adviser
Lindsay Mair
Richard Hail
Extract of announcement made today by Egdon Resources plc
Egdon Resources plc (AIM:EDR) is pleased to announce the
submission to North Lincolnshire Council (NLC) of a new planning
application (the Application) for the development of the Wressle
oil field, which the Company believes comprehensively addresses the
reasons for the refusal of the original planning applications and
the subsequent appeals.
The Application is supported by a detailed planning and
sustainability statement, a suite of technical drawings showing
construction and layout details and updated and new technical
assessments.
The Company believes that the Application takes full account of
the key findings of the Planning Inspector's decision to dismiss
the Company's appeals as set out in his decision letter of 4
January 2018, which identified three key issues in his
decision:
1. The absence of a ground conditions survey report;
2. The absence of sufficient evidence on the adequacy of the
Geosynthetic Clay Liner (GCL) covering; and
3. Uncertainty with regards to the near surface geology and
specifically the presence of capping layers to the underlying
aquifers.
The first issue has been addressed by the production of an
independent Ground Investigation Report which evaluates and
confirms the underlying ground condition at the wellsite using
information gained from geotechnical site investigation boreholes
drilled in Q1 2018.
The second issue has been addressed through the proposed
reconfiguration of the wellsite to install a new high-density
polyethylene (HDPE) impermeable membrane above the existing GCL,
with additional associated protection layers across the entire
wellsite. The specification of the HDPE impermeable membrane,
associated protection layers and thickness and suitability of the
stone covering layer, has been informed by the Ground Investigation
Report, tested and validated in a laboratory, and agreed between
the membrane manufacturer and Egdon's consulting civil and
structural engineers.
The third issue has been addressed through an updated
independent Hydrogeological and Flood Risk Assessment (HRA), which
includes the results of samples tested from two deeper cored
boreholes drilled in Q1 2018. The HRA confirms the detail of the
near surface geology and conclusively demonstrates the presence of
laterally continuous capping layers to the underlying aquifers.
Further detail of the Application can be found in the notes to
editors below.
Once validated by North Lincolnshire Council, the Application
will be reviewed by the Planning Officers at NLC, considered by
statutory consultees and will be open for comment from interested
parties. The period of consultation should be 13 weeks for an
application of this nature.
Mark Abbott, Managing Director of Egdon Resources plc, said:
"The submission of this new planning application is the
culmination of a significant amount of detailed and thorough work
by our team of specialist consultants and advisers. The new
proposed development has been informed by information from the site
investigation and deeper cored boreholes drilled during the first
quarter of 2018 and has been designed to comprehensively address
the key concerns which resulted in the Inspector's dismissal of our
planning appeals.
The proposed development incorporates high levels of embedded
mitigation, such as the new HDPE impermeable membrane system, to
minimise the potential for any environmental or other impacts from
our operations. The effectiveness of this mitigation will be
verified by continuous monitoring of the nearby water and
groundwater.
We plan to set up a community liaison group and a community fund
to ensure the local community are kept fully informed and share in
the benefits of the Wressle development.
We hope that North Lincolnshire Council will recognise the
positive changes made to the proposed development when determining
this planning application and we remain available to address any
remaining questions or concerns which may arise during the
consultation and determination process."
Notes to Editors:
The Wressle-1 Oil Field:
The Wressle-1 well was drilled in 2014 and tested in 2015. The
Wressle-1 well has flowed oil and gas from three separate
reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone
Flags. This totalled 710 barrels of oil equivalent per day from all
zones. In September 2016, a Competent Person's Report made
independent estimates of Reserves and Contingent and Prospective
oil and gas Resources for the Wressle discovery of 2.15 million
stock tank barrels classified as discovered (2P+2C).
The New Planning Application:
The new planning application (the Application) seeks permission
for the Proposed Development, which comprises:
"Retention of the Wressle-1 Wellsite and access track for the
Production of Hydrocarbons, together with an extension of the site
by 0.12ha for the installation of additional security facilities;
site reconfiguration to facilitate the installation of a new
impermeable membrane, French drain and surface water interceptor;
construction of a bund, tanker loader plinth and internal roadway
system; installation of up to 2 additional groundwater monitoring
boreholes and deepening of 3 existing groundwater monitoring
boreholes; well operations; installation of production facilities
and equipment; installation of gas engine and electrical grid
connection; oil and gas production for a temporary period of 15
years; and restoration to arable land at Lodge Farm, Clapp Gate,
Appleby, Scunthorpe."
The planning application is accompanied by the following
documents:
-- Planning and Sustainability Statement;
-- Planning Application Form;
-- Oil and Gas Checklist;
-- Site Plans and Design Drawings;
-- Technical Assessments comprising:
-- Air Quality Assessment;
-- Archaeology and Heritage Impact Assessment;
-- Civil and Structural Design Statement;
-- Ecological Appraisal;
-- Hydrogeological and Flood Risk Assessment;
-- Landscape and Visual Appraisal;
-- Lighting Assessment;
-- Assessment of Environmental Noise Emissions; and
-- Transport Statement.
Whilst the Inspector supported Egdon's position on many aspects
of the previous applications the Inspector identified the following
as key issues in his decision to dismiss the Company's appeals as
set out in his decision letter of 4 January 2018:
a. The absence of a ground conditions survey report;
b. The absence of sufficient evidence on the adequacy of the
Geosynthetic Clay Liner (GCL) covering; and
c. Uncertainty with regards to the near surface geology and
specifically the presence of capping layers to the underlying
aquifers.
Egdon believes that these issues have been fully addressed in
the Application as summarised in the RNS and as detailed further
below.
-- A number of geotechnical site investigation boreholes and two
deeper cored boreholes were drilled on the Wressle-1 wellsite
during Q1 2018.
-- The nature of the underlying ground condition at the wellsite
has been assessed and an independent Ground Investigation Report
prepared which details the existing ground conditions at the
wellsite, confirming the Company's view of the suitability of the
site and satisfying the first of the Inspectors key reasons for
dismissal of the appeals.
-- This Ground Investigation Report has been utilised by an
independent firm of consulting civil and structural engineers, to
prepare a Civil and Structural Design Statement. This document
details the design criteria, guidance and regulations applicable to
the redesign and reconfiguration of the wellsite as proposed in the
Application.
-- The proposed wellsite reconfiguration will result in the
installation of a new high-density polyethylene (HDPE) impermeable
membrane and additional associated protection layers across the
entire wellsite. As part of this, the existing site surface
aggregate will be stripped and regraded, before being re-laid on
top of the new HDPE impermeable membrane system.
-- The installation specification of the HDPE impermeable
membrane, associated protection layers and thickness and
suitability of the stone covering layer, has been tested and
validated in a laboratory against the maximum expected site
loading, and agreed between the manufacturer and Egdon's consulting
civil and structural engineers to ensure the HDPE impermeable
membrane is protected throughout the life of the wellsite.
-- Although on inspection it was found to be in effective
condition, the existing GCL membrane will remain in place but will
no longer be relied upon as tertiary containment, as it is being
overlaid with the new HDPE impermeable membrane system.
-- A Construction Quality Assurance plan will be used to ensure
the installation of the lining system is robust and constructed to
the highest engineering standards.
-- A poured reinforced concrete internal roadway will be
constructed to provide even greater weight distribution and
protection above the HDPE impermeable membrane in the most heavily
trafficked area of the site.
-- The installation of a new HDPE impermeable membrane, which
has been informed by the ground investigation report and designed
and tested by Egdon's consulting civil and structural engineers, in
consultation with, and in agreement with the manufacturer, along
with other measures as detailed; comprehensively addresses the
Inspectors concerns in relation to point b above.
-- In relation to point c., Egdon commissioned an independent
Hydrogeological and Flood Risk Assessment (HRA) to address the
uncertainty identified by the Inspector with regard to the near
surface geology and specifically the presence of capping layers to
the underlying aquifers.
-- The HRA defines a hydrogeological conceptual model (HCM)
which has utilized regional, local and wellsite specific data,
including the drilling of site investigation boreholes and
laboratory testing for hydraulic conductivity of core samples from
the two deeper cored boreholes drilled in Q1 2018.
-- These cores and tests provide conclusive evidence that
demonstrates the existence of a laterally continuous impermeable
claystone capping layer above the primary aquifer in the
Lincolnshire Limestone Formation beneath the wellsite and more
widely.
-- The HCM also demonstrates the presence of a capping layer to
the Cornbrash secondary aquifer beneath the wellsite.
-- The HRA concludes that the assessed risks relating to all
possible hazards associated with the proposed development, range
from 'Low' to 'None'. The overall risk profile for the proposed
development is a reflection of the high level of embedded
mitigation within the design of the wellsite reconfiguration (as
detailed above) and the construction of the existing Wressle-1
well.
-- The HRA confirms the detail of the near surface geology and
hydrogeology, supporting the previously presented hydrogeological
model and conclusively demonstrating the presence of a capping
layer to the underlying aquifers. This together with the
conclusions of the risk assessment, in the Company's view, fully
addresses the final issue identified by the Inspector.
It is also proposed to install up to two new groundwater
monitoring boreholes and to deepen three of the existing
groundwater monitoring boreholes to verify the effectiveness of the
embedded site environmental protection through ongoing
monitoring.
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END
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