TIDMUJO
RNS Number : 3647A
Union Jack Oil PLC
23 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.
23 September 2022
Union Jack Oil plc
("Union Jack" or the "Company")
West Newton Community Liaison Update
Union Jack Oil plc (AIM: UJO) a UK focused onshore hydrocarbon
production, development and exploration company note t he West
Newton Community and PEDL183 update presented to the West Newton
Community Liason Group by Rathlin Energy (UK) Limited ("Rathlin")
on 23 September 2022, of which the full wording is presented
below.
"Engineering Update
Over the last number of months, data collected during the course
of drilling the West Newton wells, which include core and oil and
gas samples, wireline log and well test data, have been analysed by
third party laboratories, CoreLab and Applied Petroleum Technology
(UK) Ltd ("APT") and an engineering firm RPS Group Limited ("RPS").
The results from these analyses, in conjunction with internal
evaluations, have been very helpful in informing Rathlin's upcoming
programme of work.
Laboratory analyses have determined that the formation is very
sensitive to aqueous fluids and that previous drilling of the West
Newton wells with water-based mud has created near wellbore damage
in the Kirkham Abbey reservoir, through the creation of very fine
rock fragments while drilling that potentially plug up the natural
porosity and permeability of the reservoir and have a detrimental
effect on its ability to flow. Further analyses have determined
that the use of dilute water-based acids during well testing will
also have adversely affected the flow characteristics of the
Kirkham Abbey reservoir.
These same tests demonstrate that by drilling the Kirkham Abbey
reservoir with an oil-based drilling fluid, damage to the oil and
gas reservoir can be minimised.
To that end, Rathlin has made applications to the Environment
Agency for use of oil-based drilling fluids within the oil and gas
bearing Permian section, for both the West Newton A and B sites.
Oil based drilling fluids are included in the Standard Rules
permit, which has been applied for at West Newton B site, whereas
the current variation to the West Newton A site permit has been
adapted to include oil-based muds in the same manner as in the
Standard Rules permit. Determination of these permits are
pending.
Analyses by ATP, of numerous oil and gas samples recovered from
the West Newton wells during testing to date, along with evaluation
of mud gases measured during drilling, utilising a proprietary
software package, indicates that the Kirkham Abbey reservoir is
predominately gas (primarily methane 90% + ethane 5%) with
associated light oil (condensate).
The significance of this finding is that the requirement for
trucking during production may be greatly reduced.
Following on from the laboratory analyses, Rathlin engaged
engineering consultants RPS to undertake a detailed reservoir and
completion programme study, based on the CoreLab and ATP results.
RPS determined that by drilling with an oil-based mud system and
extending the length of reservoir section penetrated by a well, the
productive capability of each well will be enhanced.
RPS has modelled wells extending up to 1500 metres horizontally
through the Kirkham Abbey reservoir. The modelled horizontal wells
will also have a much greater likelihood of encountering
significant sections of the reservoir with open natural fractures,
which will also enhance the productive capability of the Kirkham
Abbey reservoir.
Work programme
Rathlin's and our partners' technical teams are currently
working to determine the optimum orientation for a horizontal well,
which may be drilled from either the A or B sites.
Given the challenges with the global supply chain, long lead
items such as steel casing for a horizontal well has already been
ordered. The availability of drilling rigs capable of drilling a
1500 metre horizontal well is also being determined.
Field Development
The significance of the laboratory and engineering findings has
important benefits in terms of the West Newton field
development.
From a local resident perspective, a development with more gas
and less oil will significantly reduce the volume of traffic
associated with production and allow for the installation of a
pipeline to deliver natural gas directly to the National Grid.
Domestically produced natural gas is, and will remain, a
much-needed part of the energy mix as the UK seeks to reduce its
reliance on foreign gas, whether delivered by pipeline or as
Liquefied Natural Gas ("LNG") in ocean-going tankers.
The North Sea Transition Authority indicates that domestic UK
gas production has less than half of the Emission Intensity of
imported LNG. This is particularly important, as the UK seeks to
reach its Net Zero 2050 targets.
Commercial production from West Newton could start as early as
2026, provided regulatory approvals are expedited and supply chain
delays con be managed.
The anticipated recoverable gas resource at West Newton will
have the potential to meet the daily gas demands of over 380,000
homes in the UK for many years to come. Based on OFGEM data
indicating that an average 3-bedroom UK home consumes 7.9 Kwh/day
of electricity and 32.9 Kwh/day of natural gas."
Executive Chairman of Union Jack, David Bramhill commented: "The
content of the West Newton and Additional Prospects PEDL183 Onshore
UK Competent Person's Report ("CPR") being Compiled by RPS is
expected to be published during the week commencing 26 September
2022."
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDFLFIRARIFFIF
(END) Dow Jones Newswires
September 23, 2022 02:00 ET (06:00 GMT)
Union Jack Oil (LSE:UJO)
Historical Stock Chart
From Apr 2024 to May 2024
Union Jack Oil (LSE:UJO)
Historical Stock Chart
From May 2023 to May 2024