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Union Jack Oil

Union Jack Oil plc Commencement of drilling operations at West Newton

Union Jack Oil plc (LON: UJO), a UK focused on-shore hydrocarbon production, development and exploration company today announced the commencement of conventional drilling operations at West Newton, located within PEDL183 in East Yorkshire and within the Western sector of the Southern Zechstein Basin. PEDL183 is operated by Rathlin Energy (UK) Limited.

David Bramhill, Executive Chairman of Union Jack, commented:

“West Newton is a near term, and potentially high impact project which, if successful would deliver a major UK onshore gas development.

“The well is fully funded from existing cash resources, and in preparation of success, also funded for any long-term gas production test, plus further technical and initial conceptual commercial studies.

“We look forward to a safe and successful drilling campaign and to reporting preliminary results from the well to shareholders and the market when available.”

The West Newton A-2 appraisal well, targeting the Kirkham Abbey Shoal and Cadeby Reef formations for gas and oil respectively, was spudded at 01:45 on 26 April 2019.

Union Jack has a 16.665% interest in PEDL183 which contains the significant West Newton A-1 gas discovery with a gross Best Estimate Contingent Resource of 189 billion cubic feet of gas equivalent within the Kirkham Abbey Shoal formation. In addition, there is considerable upside potential from the lower, Cadeby Reef formation, oil exploration target underlying the gas reservoir, with a gross Best Estimate Prospective Resource of 79.1 million barrels of oil equivalent.

The West Newton A-2 appraisal well will be drilled to a total depth (“TD”) of approximately 2,061 metres below ground level and is expected to take circa 40 days to reach TD.

The West Newton A-2 appraisal well is fully funded and has a combined geological and commercial Probability of Success of in excess of 60% and 26% over the Kirkham Abbey Shoal and Cadeby Reef formations respectively.

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.