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Union Jack Oil gears up to resume flow testing operations at West Newton

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Oilfield Technology,

Union Jack Oil plc (UJO), the UK-focused onshore hydrocarbon production, development and exploration company, has announced an update on the Extended Well Test at the West Newton A-2 appraisal discovery well, in East Yorkshire.

Completion and Extended Well Test operations on the Kirkham Abbey formation in the West Newton A-2 well were temporarily suspended in August 2019. The suspension was necessary to ensure testing is reviewed to include the oil zone since the previously approved testing programme for the West Newton A-2 discovery well had originally been designed to test a gas column.

Re-evaluation of data and core analysis indicates a material upgrade in liquid hydrocarbons contained in the Kirkham Abbey reservoir in the West Newton project area. The Upside Case estimates are liquids 283 million bbl and gas 265.9 billion ft3.

The partners are currently preparing for the extended well test operation, readying equipment and awaiting regulatory approvals. Once said approvals are received, the equipment will be mobilised to site at the earliest opportunity and the EWT will re-commence.

The West Newton discovery has been hailed as one of the most significant onshore conventional oil and gas finds in the UK for 30 years, holding possibly the largest gas field in the British Isles.

Union Jack Oil, following a recent successful placing of £5 million, is fully funded for the cost of future drilling operations and any other project related works and G&A, including 3D seismic acquisition over other potential prospects within PEDL183.

The company's portfolio of high-impact hydrocarbon sources, all based in the UK, centred around the East Midlands and East Yorkshire, also includes direct interest in Wressle oil producing field and Biscathorpe, one of the UK's largest onshore unappraised conventional oil prospects.

David Bramhill, Executive Chairman of Union Jack, commented: “Substantial progress has been made to understand better the significant West Newton discoveries and to plan the resumption of the A-2 EWT and design of the drilling programme for 2020 following extensive and painstaking technical work executed by both Rathlin and Union Jack`s technical teams. Although highlighted in an RNS previously, what had become apparent is the materiality of the size and scale of the liquid and gas volumes in place at West Newton, which we believe are unique to UK onshore and more representative of offshore North Sea discoveries.

West Newton remains Union Jack’s flagship project, which we expect to be evaluated in further detail during 2020. If confirmed, West Newton will add significant value to the Company.

In addition to West Newton, we also look forward in 2020 to progressing work on our other advanced projects including first production from the development at Wressle, subject to a favourable decision from the Planning Inspectorate, progressing the ongoing studies and appraisal of what we consider to be a material resource at Biscathorpe, and making meaningful technical and corporate progress at two other projects, namely the producing Keddington oil field, which we consider holds untapped value, and at the drill-ready North Kelsey Prospect, where we also have high expectations."

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