TIDMUJO
RNS Number : 5512Y
Union Jack Oil PLC
17 January 2022
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.
17 January 2022
Union Jack Oil plc
("Union Jack" or the "Company")
West Newton Modelled Flow Rate Potential and Fluid Analysis
Update
Union Jack Oil plc (AIM:UJO) a UK focused onshore hydrocarbon
production, development and exploration company is pleased to
announce initial results of the modelled flow rate analysis by RPS
Group ("RPS") and the fluid analysis carried out on fluids produced
to surface during the West Newton Extended Well Test ("EWT")
programme carried out in H2 2021.
Highlights
-- Independent study by RPS Group* indicates initial average
potential production rates of up to 35.6 million cubic feet of gas
per day ("mmcfd") (5,900 barrels of oil equivalent per day "boepd")
from a horizontally drilled well situated in the gas zone, based on
the data from West Newton A-2 well
-- Study also indicates initial average potential production
rates of 1,000 barrels of oil per day ("bopd") from a horizontally
drilled well situated in the oil zone based on data from West
Newton A-2 well
-- Fluid analysis confirms that hydrocarbon liquids recovered to
surface are low specific gravity, low viscosity, light oil or
condensate with an API ranging from 45.9 to 49 degrees, and that
gas recovered to surface is good quality with high heat content
Independent Review of West Newton Flow Rate Potential
Following the completion of the West Newton EWT in Q4 2021, the
project operator, Rathlin Energy Limited ("Rathlin"), commissioned
RPS, a highly regarded independent consultant, to produce a review
that assessed well productivity potential from the West Newton
project, and the investigation of optimised drilling and well
completion methodologies.
The RPS review concluded that the Kirkham Abbey reservoir could
deliver substantially higher production rates from horizontal wells
compared to vertical wells. The report also concluded that, based
on RPS modelling, most of the acid stimulation carried out during
the EWT only interacted with a small section of the perforated
intervals due to the permeability contrast across the Kirkham Abbey
formation in both wells. This suggests that potential flow rates
from wells in the Kirkham Abbey reservoir would benefit from a
conventional optimised acid stimulation programme that includes
active diversion techniques.
The analysis was based on a comprehensive suite of data provided
from operations to date at West Newton, including logs, core data,
petrophysical analyses, drilling and completion information, stock
tank oil analysis, and other existing third-party reports.
The RPS report modelled potential flow rates from the Kirkham
Abbey reservoir, assuming horizontal drilling, similar acid
concentrations and diluted volumes per interval as utilised during
the EWT operations and an optimised acid-based stimulation
programme, the results of which are tabled below.
Modelled West Newton (A-2 Location) Initial One Month Average
Production Potential Per Day
Average
Phase Well and Completion Type Daily Production
Vertical Well Optimised Acid
Gas Stimulation 1.8 mmscfd
Horizontal Well Optimised Acid
Gas Stimulation 35.6 mmscfd
-------------------------------- ------------------ -------
Vertical Well Optimised Acid
Oil Stimulation 64 bopd
-------------------------------- ------------------ -------
Horizontal Well Optimised Acidl
Oil Stimulation 1,000 bopd
-------------------------------- ------------------ -------
The RPS modelling does not take into account any potential
contribution to productivity resulting from the natural fracturing
that has been identified within the Kirkham Abbey reservoir.
Rathlin management's belief is that natural fracturing is likely to
be present within future completion zones, which may further
enhance well productivity.
More detailed evaluation is required to support this flow rate
potential as well as the economic feasibility of horizontal wells,
including an assessment of longer-term production rates. A number
of additional workstreams and studies are currently underway, the
results of which will enable the compilation of the next work
programme at West Newton.
Analysis of Fluids Recovered from the EWT
A number of natural gas and liquid hydrocarbon samples were
collected and analysed from both the West Newton A-2 well and the
West Newton B-1z well. The natural gas had measured specific
gravities of 0.63; a methane content of ca 90 per cent. and an
ethane content of ca 4.5 per cent.
The liquid hydrocarbons measured API gravities between 45.9(o)
and 49(o) indicating a very light oil or condensate. The samples
also displayed a low viscosity measured at between 0.80 centipoise
at 40(o) C, 0.91 centipoise at 25(o) C.
Executive Chairman of Union Jack, David Bramhill, commented: "We
are encouraged by the RPS review which continues to underline West
Newton's potential as a material hydrocarbon producer.
"This initial analysis confirms the significance of the in-place
resource and crucially, has de-risked the project by indicating the
potential recovery of what we can now confirm to be high quality
light oil, in addition to good quality gas.
"The mass of data obtained from the operation has allowed the
modelling of potential flow rates, independently assessed for the
first time.
"Ultimately, all of the analysis currently being undertaken is
aimed at reducing risk and providing the Joint Venture with
sufficient data to develop our forward plan for the next phase of
activity at West Newton.
"Further work, including lab-based analysis of the core under
reservoir conditions is underway, which will further inform optimal
future drilling and completion methods at West Newton.
"We look forward to providing further updates in due
course."
*About RPS Group
RPS is a leading global professional services firm. Within the
energy sector and the oil and gas sub-sector, specifically, RPS has
a long history of working on some of the world's most technically
demanding oil and gas projects, both on and offshore. RPS
specialises in technical and advisory services for projects
delivered in remote, sensitive and operationally challenging
environments.
For further information, please contact
Union Jack Oil plc info@unionjackoil.com
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20
3470 0470
Nominated Adviser and Broker
Richard Morrison
Richard Hail
Caroline Rowe
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