Union Jack Oil PLC Carbon Intensity Study on West Newton Rated AA (0218Q)
June 16 2020 - 1:00AM
UK Regulatory
TIDMUJO
RNS Number : 0218Q
Union Jack Oil PLC
16 June 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
16 June 2020
Union Jack Oil plc
("Union Jack" or the "Company")
Carbon Intensity Study on the West Newton Hydrocarbon Project
Rated AA by GaffneyCline
Union Jack Oil plc (AIM: UJO), a UK focused onshore hydrocarbon
production, development and exploration company, is pleased to
publish the positive conclusions of a Carbon Intensity Study on the
West Newton hydrocarbon project, located within PEDL183 onshore UK
in East Yorkshire, undertaken by GaffneyCline & Associates
Limited ("GaffneyCline"), an international petroleum consultancy.
Union Jack holds a 16.665% interest in PEDL 183 that includes the
West Newton A-1 and A-2 hydrocarbon discoveries.
The Gaffney Cline study highlighted the following:
-- The West Newton project has an AA rating for Carbon Intensity
for its potential Upstream crude oil production
-- Carbon Intensities at West Newton are significantly lower
than the UK average and compared to other onshore analogues
-- Based on the study, GaffneyCline estimate that West Newton
could produce the equivalent of just 5 grams of CO(2) per megajoule
of energy created (gCO(2) eq./MJ)
-- The study also highlighted that this number could be further
reduced to just 3.5 gCO(2) eq./MJ by applying gas-to-grid
technologies
-- As the development proceeds and project knowledge increases,
there is potential to improve the Carbon Intensity by further
reducing fugitive, flaring and venting emissions through the use of
best available technologies
Union Jack`s focus is to minimise emissions and the carbon
footprint generated by its hydrocarbon developments in the most
efficient way possible, whilst continuing to contribute positively
to the growing demand for energy and hydrocarbon products in the
supply chain.
The demand for energy is increasing and, as the global economy
recovers, hydrocarbons will continue to play an ongoing part in
ensuring the energy security of the UK. Union Jack`s development
projects are located close to areas with a high demand for energy.
As a consequence, the Company believes that locally produced
hydrocarbons may provide the benefit of displacing, to some extent,
imported hydrocarbons.
The Carbon Intensity study on the West Newton hydrocarbon
project was calculated by GaffneyCline, using the Oil Production
Greenhouse Gas Emissions Estimator developed at Stanford University
and an assessment of the Global carbon intensity of crude oil
production which GaffneyCline contributed to. Study parameters were
selected from GaffneyCline`s Global field database as well as
specific West Newton factors, including a notional development plan
and recovery mechanism. The result of this study was benchmarked
against other field analogues using the Global field database. In
addition, the outcomes of the study were analysed and insights
provided on the major contributing factors to the overall carbon
intensity of West Newton.
Carbon Intensity Rating for West Newton Development Concept
Carbon Intensity Rating
Carbon Intensity = gCO(2) eq./MJ
Current Potential
-------------- -------------- -----------
AA GBP 5 5 3.5
-------------- -------------- -----------
A 5 - 7
-------------- -------------- -----------
B 7 - 11
-------------- -------------- -----------
C 11 - 20
-------------- -------------- -----------
D 20 - 30
-------------- -------------- -----------
E 30 - 50
-------------- -------------- -----------
F 50 - 70
-------------- -------------- -----------
G Over 70
-------------- -------------- -----------
Source: GaffneyCline
Analysis of the results of this GaffneyCline study concludes
that the West Newton hydrocarbon project has carbon intensities
significantly lower than the UK average and compared to other
onshore analogues. As recommended by the study the development of
West Newton will seek to further reduce the project`s Carbon
Intensity through the utilisation of the best available techniques,
including Gas-to-Grid technologies and stringent engineering
specifications to minimise any venting, flaring or fugitive
emissions.
David Bramhill, Executive Chairman of Union Jack commented:
"This study is an excellent overview of the green credentials for
any future development decision at West Newton. The AA rating
achieved indicates the efforts made by the Operator, Rathlin Energy
(UK) Limited, to ensure that projects under its stewardship comply
with best practice. Union Jack and Reabold Resources Plc support
Rathlin`s strategy to negate the effects and threat of climate
change. Union Jack`s growth strategy is aligned with our Carbon
Management Practice for all of our development projects in the
future in order to achieve significantly lower carbon intensities
than the industry average.
"The Board of Union Jack believes that in these environmentally
aware times, investors will only wish to commit to investments in
companies and projects that support a transition to a low-carbon
economy. As part of our ongoing strategy in respect of the
environment going forward, we commit to be totally transparent in
respect of our projects and on how our Carbon Management Practice
is implemented."
GaffneyCline
GaffneyCline is an international petroleum consultancy, which
has been operating worldwide since 1962. GaffneyCline focuses
solely on the petroleum and energy industry, and specializes in the
provision of policy, strategy, technical and commercial assistance
to governments, financial institutions, and national and
international oil, gas and energy companies worldwide. The
provision of Carbon Management Practice and Carbon Intensity
Assessment have recently been added as a core component of
GaffneyCline's international business
For further information, please contact:
Union Jack Oil plc +44 (0)78 0154 0358
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Broker
Richard Morrison
Richard Hail
Caroline Rowe
Cassiopeia Services Ltd +44 (0)7949 690 338
Public Relations
Stefania Barbaglio
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END
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