TIDMUJO
RNS Number : 5727F
Union Jack Oil PLC
19 July 2021
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.
19 July 2021
Union Jack Oil plc
("Union Jack" or the "Company")
Carbon Intensity Study on the Biscathorpe Hydrocarbon Project
Rated AA by GaffneyCline
Planning Update
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
Biscathorpe hydrocarbon project, located within the proven
hydrocarbon fairway of the South Humber Basin containing PEDL253,
onshore UK.
The study was undertaken on behalf of the PEDL253 Joint Venture
by Gaffney, Cline & Associates Limited ("GaffneyCline"), an
international energy consultancy.
Union Jack holds a 45% interest in PEDL253.
The GaffneyCline study highlighted the following:
-- The Biscathorpe project, as currently envisaged has an AA
rating for Carbon Intensity for its potential long-term production
of oil using GaffneyCline's own rating system
-- Carbon Intensities at Biscathorpe are estimated to be
significantly lower than the current UK average when compared to
other onshore analogues
-- Once in production, based on the study GaffneyCline estimates
that the Biscathorpe project will have a Carbon Intensity of just
3.06 grams of CO2 per megajoule of energy created (gCO2eq./MJ)
-- The study also highlighted that this number could be further reduced to just 1.49 gCO2eq./MJ
by applying gas-to-grid 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 Biscathorpe hydrocarbon
project was estimated 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 Biscathorpe 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 the Biscathorpe project.
Carbon Intensity Rating for the Biscathorpe Development
Concept
Carbon Intensity Range
Current Potential
-------- -------- ----------
AA GBP 5 3.06 1.49
-------- -------- ----------
A 5 - 7
-------- -------- ----------
B 7 - 11
-------- -------- ----------
C 11 - 20
-------- -------- ----------
D 20 - 30
-------- -------- ----------
E 30 - 50
-------- -------- ----------
F 50 - 70
-------- -------- ----------
G Over 70
-------- -------- ----------
Source: GaffneyCline, July 2021
Analysis of the results of this GaffneyCline study concludes
that the planned Biscathorpe hydrocarbon project has carbon
intensities significantly lower than the current UK average and
compared to other onshore analogues. As recommended by the study,
the development of Biscathorpe will seek to further reduce the
projects 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.
Egdon Resources U.K. Limited ("Egdon") has advised the Joint
Venture that additional documentation was submitted to Lincolnshire
County Council in early July in response to a Regulation 25 notice
arising from the initial consultation on the planning application
for the Biscathorpe project.
This information will now be subject to a period of consultation
before the planning application is considered by the Planning
Committee, currently anticipated to be in September/October
2021.
David Bramhill, Executive Chairman of Union Jack commented:
"This study is an excellent overview of the green credentials for
any potential future development decision at Biscathorpe. The AA
rating achieved indicates the efforts made by the Operator, Egdon,
to ensure that projects under its stewardship comply with best
practice. Union Jack and Montrose Industries Ltd support Egdon'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.
"Biscathorpe represents a material and financially robust
opportunity to secure an indigenous oil resource which would
generate local and regional economic benefits displaying
environmental advantages through its lower carbon footprint when
compared to imported hydrocarbons."
GaffneyCline
GaffneyCline is an international energy 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 Energy
Transition advice and Carbon Intensity Assessment have recently
been added as a core component of GaffneyCline's international
business (www.gaffneycline.com).
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 Broker
Richard Morrison
Richard Hail
Caroline Rowe
Cassiopeia Services Ltd +44 (0)7949 690 338
Public Relations
Stefania Barbaglio
Novus Communications Ltd +44 (0)20 7448 9839 / Twitter: @Novus.comms
Financial Public Relations
Alan Green/Jacqueline Briscoe
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