GCIUnion Jack Oil confirms free flowing oil at Wressle oilfield development
Operator of the development, Egdon Resources U.K. Limited, commenced operations to re-complete and reperforate the well at the Wressle development (Fig.1) site in January 2021.
Figure 1: Location of PEDL 183
(Source: Union Jack Oil)
The UK focused onshore hydrocarbon company told investors that following the re-perforation and its successful communication with the Ashover Grit reservoir interval, that free-flow of oil has now commenced and the well has been placed on continuous 24 hour test production.
The well is now in the normal clean-up phase as the well is carefully brought on-stream. 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.
Produced oil from Wressle will be transported by road tanker to the Phillips 66 Humber refinery and sold under the Operator's (Egdon Resources) existing sales contract.
Wressle is believed to be economically robust with an estimated project break-even price oil price of $17.62 per barrel and expected to result in an initial constrained production rate of 500 barrels of oil per day gross, or 200 barrels of oil per day net to Union Jack.
Shares in Union Jack Oil have increased by 25% since the beginning of November 2020 to open 1.32% higher this morning at 0.193p following the announcement.
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.
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.
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