Union Jack Oil (AIM:UJO) and energy operator Rathlin Energy are eyeing up new well locations as they start planning for the next phases of the West Newton project in Yorkshire.
The onshore exploration firm said Rathlin Energy has submitted screening requests to the East Riding of Yorkshire Council for two new potential hydrocarbon well sites.
This is the first step of a planning process to further explore and appraise the West Newton hydrocarbon field and will determine whether planning application submissions for two new wells, West Newton C and West Newton D, will require environmental impact assessments.
Last week, the company finalised construction work on the West Newton B-1 well and said drilling operations would commence shortly. The group will drill down to around 80 metres before casing and the erection of the primary rig to drill down to around 2,000 target depth.
Once completed, Union Jack said the information will inform a subsequent programme of well testing “which will establish productive capability and any future drilling operations.”
The company said further exploration and appraisal of the West Newton Field will continue to progress the company's understanding of the West Newton hydrocarbon prospect.
Shares in Union Jack Oil have increased gradually over the past three months and were trading 3.51% higher this morning at 0.295p.
The project is in the Humber region, the UK's largest energy hub which contributes £18bn towards the UK economy and 27% of the UK's oil refinery capacity. The region has been identified by the government as a potential ‘zero carbon’ or carbon-neutral industry cluster.
Commenting on the opportunity, Rathlin stated: “The Zero Carbon Humber energy and chemicals cluster has been identified by the UK government as a funding recipient to develop the world's first carbon neutral (net zero) industrial cluster by 2040.
Hydrocarbons are used as raw materials to make a range of products including fertiliser for agriculture, PPE for hospitals, detergents for homes, paints, moldable plastics, mobile phones, laptops, surfaces for roads as well as used to heat homes and businesses.”
The group said it believes West Newton has the potential to provide local feedstock to a Humber net zero project thereby replacing the need for imported hydrocarbons.
It added that the project could also develop indigenous energy sources, contributing to the economic welfare of the Humber region and enhancing local job prospects.
Union Jack holds a 16.665% interest in PEDL183 containing the West Newton A-1 and the West Newton A-2 appraisal well discoveries and the Operator is Rathlin UK Limited.
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