UJO releases new significant technical data for West Newton project

 (UJO ) said it has released a technical presentation on its website in respect of the recently drilled West Newton B-1 and B-1Z appraisal wells containing new significant technical data that is material to the ongoing commercial evaluation of the project.

The UK focused onshore hydrocarbon production, development and exploration firm holds a 16.665% economic interest in PEDL183 (Fig. 1) which hosts West Newton A-1, A-2 and B-1Z.

Figure 1: Location of PEDL 183

(Source: Union Jack Oil)

The report highlights new locations for the West Newton A-1, A-2, B-1, B-1Z discoveries and a proposed B-2 well, which has planning permission in place and is provisionally planned to be drilled in H2 2021, as well as a demonstration of where the B-1Z well represented a considerable 2.5km step-out to the south of the A-2 well (Fig: 2).

Figure 2: West Newton B1 and B-1Z Appraisal Wells

(Source: Union Jack Oil)

B-1Z, which has returned ‘excellent’ log results exceeding UJO’s pre-drill expectations, was found to de risk the southern component of the West Newton licence area, crucially supporting the accuracy of the seismic interpretation across the entire platform.

The group found good seismic calibration (Fig: 3) across the West Newton project area highlighting both the Kirkham Abbey "platform" and "slope" formations while the discoveries also demonstrated a hydrocarbon column of at least 118m with no hydrocarbon-water contact.

Figure 3: Strong Seismic calibration across West Newton Kirkham Abbey Formation

(Source: Union Jack Oil)

Meanwhile, the Company said it has also identified a thick, porous section in both A-2 and B-1Z wells suggesting ‘a contiguous structure’ across the Kirkham Abbey formation. 

In addition, numerous additional leads and prospects, including Ellerby and Spring Hill, have been identified by the Company across the PEDL183 licence.

"Following the drilling of the successful B-1Z appraisal well, the technical summary of the West Newton project, provided on the UJO website, is the result of extensive evaluation by technical teams at Rathlin Energy, Reabold Resources and Union Jack, all who have contributed additional materiality to our technical understanding of West Newton.

There remains considerable upside in the opinion of Union Jack’s management especially with the Ellerby and Spring Hill Prospects being on-trend with West Newton”, said David Bramhill, Executive Chairman of Union Jack. 

UJO has delivered a positive and detailed Technical Update for investors to digest, showing its clear intent to keep all classes of investor well informed, which we support. UJO shares continue to perform solidly following their purchase of a further 15% in the Biscathorpe project announced earlier this month. Shares in UJO have increased by nearly 40% since the beginning of December 2020 to open at 0.18p following todays’ news.

Reasons to Follow UJO

UJO is an onshore oil and gas exploration firm with a focus on drilling, development and investment opportunities in the UK hydrocarbon sector, and currently holds interests in 13 licences in areas including, inter alia, the East Midlands, Humber Basin and East Yorkshire.

West Newton

The UK focused onshore hydrocarbon explorer holds a 16.665% interest in PEDL183, containing the conventional West Newton A-1 discovery well and WNA-2 appraisal well. 

West Newton is located at the heart of the Zero Carbon Humber project area, which aims to promote decarbonising technologies across industrial activities in the wider Humber region.

In October 2020, it reported that the onshore West Newton B-1 ("WNB-1") well - the next well following the successful West Newton A-2 ("WNA-2") appraisal well - had been spud. 

Results from the drilling of WNB-1 are expected to inform a subsequent programme of testing to establish the well's productive capability as well as future drill operations.

The full technical update of West Newton PEDL183 can be found here: West-Newton-Presentation.pdf (unionjackoil.com) 

(Source: Union Jack Oil)

North Kelsey

In recent months, UJO also increased its stake in the North Kelsey project by acquiring an additional 30% from Egdon Resources, taking its stake in the exploration project up to 50%.  

Further financial obligations will be equal between Union Jack and Egdon Resources, in line with both parties’ 50% stake in the North Kelsey Prospect which is located in Lincolnshire. 

The North Kelsey Prospect is a conventional oil prospect along trend from and analogous to the Wressle oil development, which lies around 15 kilometres to the northwest. 

The UK- focused group said the prospect has been mapped from 3-D seismic data and has the potential for oil in up to four stacked conventional Carboniferous reservoir targets.  

David Bramhill, Executive Chairman of UJO, described North Kelsey as “a low cost, drill-ready onshore acquisition for Union Jack in our focus area, consistent with our strategy.” 

He said a further stake in the project increases the group’s exposure to a “potentially value adding project” as well as expanding UJO’s balanced drilling and development portfolio. 

Subject to a successful farm-out, North Kelsey-1 is expected to be drilled during 2021.

Wressle 

Operator, Egdon Resources U.K. Limited, commenced operations to re-complete and reperforate the well located at the Wressle hydrocarbon development site last week.

The Company highlighted that operations are expected to be completed to enable the Ashover Grit reservoir to be flowed prior to the end of January 2021, as previously advised.

The Ashover Grit reservoir is expected to produce 500 barrels of oil per day at a constrained rate, increasing UJO’s net production by an additional 200 bopd when fully on stream.

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