TIDMUJO
RNS Number : 1113K
Union Jack Oil PLC
31 August 2021
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.
31 August 2021
Union Jack Oil plc
("Union Jack" or the "Company")
West Newton Update
Union Jack Oil plc (AIM: UJO), a UK focused onshore hydrocarbon
production, development and exploration company is pleased to offer
an update in respect of well test operations at the West Newton
B-1z and A-2 appraisal wells located within PEDL183, operated by
Rathlin Energy (UK) Limited.
Union Jack holds a 16.665% economic interest in PEDL183,
encompassing an area of 176,000 acres and located within the
Western Sector of the Southern Permian Basin, onshore UK, North of
the river Humber. PEDL183 contains the West Newton-A1 (WNA-1),
WNA-2 and WNB-1z hydrocarbon discoveries.
Further to Union Jack`s announcement dated 21 July 2021, the
current status at WNB-1z and WNA-2 is as follows.
West Newton B-1z
-- Significant hydrocarbon column of approximately 118 metres
demonstrated on completion of drilling at the B site
-- Material volumes of hydrocarbons remain in place
-- 44 metres of the Kirkham Abbey formation perforated
-- Good quality gas recovered and incinerated at surface,
consistent with gas flowed from WNA-1 and WNA-2 wells
- Gas analysis report indicates approximately 90% methane, 4.5%
ethane and no H2S (Hydrogen Sulphide)
-- Liquid hydrocarbons recovered to surface
- Kirkham Abbey formation naturally fractured, confirmed by
imaging log, core, SEM photomicrographs and
most significantly fluid injection rates of 5.7 barrels per minute (8,208 barrels per day)
- Similarities between "fingerprints" of liquids recovered from WNA-1 and WNA-2 wells
-- Indications are that the formation is sensitive to fluid/water, specifically in matrix
-- Consequently, during drilling and completion operations, the
Kirkham Abbey formation is suspected to have been subject to near
well bore formation damage preventing optimum hydrocarbon flow
-- WNB-1z currently shut in with gauges in hole recording data
and pressure build up, which is already being observed, into early
October 2021
-- Remedial action will be informed by pressure data recorded,
results from WNA-2 test and an independent technical review
-- Following remedial interventions the WNB-1z well is expected
to be suspended as a potential producer
West Newton A-2
-- Extended Well Test to recommence and equipment now being mobilised to A site
-- Significant hydrocarbon column of approximately 65 metres
demonstrated on completion of drilling at WNA-2
-- Material volume of hydrocarbons in place
-- Previously completed zone at WNA-2 has been shut in for circa
two years with very little fluid head on the perforated
interval
-- In comparison to WNB-1z, minimal fluid was lost to the formation
-- Union Jack remains fully funded for the intended well test programme
Executive Chairman of Union Jack, David Bramhill, commented: "We
are highly encouraged by these initial results from an ongoing
multi-well appraisal testing and drilling campaign at West Newton
that has confirmed there are significant hydrocarbons in place and
an active hydrocarbon system present.
"Our enthusiasm is borne out by the return of hydrocarbons to
surface at this ongoing and early stage testing of the Kirkham
Abbey formation, natural fracturing and significant fluid injection
rates of 5.7 barrels per minute (8,208 barrels per day).
"Following these promising initial results at the B1z well
equipment is currently being mobilised to the A-2 well site for the
recommencement of testing.
"The Joint Venture partners are resolved to unlocking West
Newton`s inherent value and generating a successful return on
capital invested.
"We look forward to reporting on progress at both wells going
forward."
Competent Person`s Statement
In accordance with the "AIM Rules-Note for Mining and Oil and
Gas Companies", the information contained within this announcement
has been reviewed and signed off by Graham Bull, Non- Executive
Director, who has over 46 years of international oil and gas
industry experience.
For further information, please contact
Union Jack Oil plc info@unonjackoil.com
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Broker
Richard Morrison
Richard Hail
Caroline Rowe
Novus Communications Ltd +44 (0)20 7448 9839 /
Twitter:@NovusComms Financial Public Relations
Alan Green/Jacqueline Briscoe
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