Union Jack Oil (UJO)  told investors that Rathlin Energy, which operates PEDL183 and the West Newton Field, has launched an online consultation event as part of a public planning consultation process for the proposed development of the West Newton A site.

The UK focused onshore hydrocarbon development and exploration firm holds a 16.665% interest in PEDL183, located within the Western sector of the Southern Zechstein Basin.

PEDL183 (Figure 1) contains the conventional West Newton A-1 discovery well ("WN-A1"), the A-2 appraisal well ("WN-A2) as well as the recently drilled B-1Z discovery ("WN-B1Z").

Figure 1: Location of PEDL 183


(Source: Union Jack Oil) 

In January 2021, the parties received a Screening Opinion from the East Riding of Yorkshire Council in response to its screening request for the proposed West Newton A site extension.

The proposed extension of the existing West Newton A wellsite and associated work programme would provide for testing, appraisal and production from two existing wells. 

In addition to the two wells - WN-A1 and WN-A2 - was also the potential for drilling, testing, appraisal and production from up to six new wells on the WNA site over a 25-year period. 

Today’s announced public consultation, which is said to include conceptual development plans and indicative drilling and production schematics on a potential hydrocarbon development, is the next step prior to the submission of a formal planning application. 

The documentation contained in the online consultation event will include information on the benefits of domestic hydrocarbon production, given that the UK economy is a net importer.

It also presents information on the need for responsible hydrocarbon usage as the parties transition towards the UK government's net zero carbon target for fuel supply as well as on the Humber region and its role in delivering the UK's first zero carbon industrial cluster.

Rathlin believes West Newton has the potential to provide local feedstock to a Humber net zero project replacing the need for imported hydrocarbons while at the same time developing indigenous energy sources, contributing to the economic welfare of the Humber region.

Shares in UJO have increased by over 20% since the beginning of the year. The stock opened 1.35% higher this morning to 37.5p following the news that Rathlin energy has submitted a public consultation process, the prior step to a formal planning application.

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.

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 

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

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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