Union Jack Oil (UJO) said it is working on a revised application for the proposed development of the West Newton A production ‘in line’ with comments made by council representatives.
The UK-focused onshore hydrocarbon exploration group holds a 16.665% economic interest in PEDL183 which contains the WNA-1, WNA-2 and WNB-1Z hydrocarbon discoveries.
In September 2021, Union Jack said its planning application for the West Newton A well site expansion had been declined by the East Riding of Yorkshire Council Planning Committee.
However, in a statement today, the onshore hydrocarbon production, development and exploration company told investors that the new application will take on board the concerns regarding the scale of the development, and other points raised by the local community.
It now intends to submit a new application, “with the intent of addressing the scale of the development by reducing the site footprint and reducing the number of wells to be drilled.”
The company will also be providing ‘a more detailed landscape and planting proposal’ within its revised application ‘to enhance the screening of the site and will examine more extensively the potential for passing places along Pasture Lane and other traffic management proposals.’
The revised timeline for approving its application will allow UJO to present its development "in more detail and to provide additional information to locals and the committee."
Due to the proposed planning application being of smaller scope than previously assessed, the environmental assessments required to accompany the application should only need minor amendments which will allow it to submit the application by the end of 2021, it noted.
At West Newton B, current planning permission has a condition that requires operations to be completed by April 2022. Despite its operational efforts since site construction was initiated, Union said it is unlikely that the originally proposed work scope will be finished before then.
As a result, Union Jack said it will be applying to the East Riding of Yorkshire Council to vary this condition.
It explained that the original development was approved to allow for two wells to be drilled and tested, and following “encouraging” results from the West Newton B1z well, as well as the A site wells, the group is requesting further time to drill and test the second well at the site. It said this application will not make any changes to the proposed development activity.
The company highlighted to investors that it intends to submit this particular application by the end of the year so that the WNA and WNB applications can run along the same timeline.
Addressing shareholders, Union Jack Oil said it believes that hydrocarbons will continue to play “an ongoing and essential role” in the UK, for both energy supply and as a raw material, now and for the next generation of East Riding of Yorkshire residents and businesses.
“Over the next 25 years there will be a co-ordinated and concerted effort to reduce emissions and we are absolutely committed to supporting the UK government in this transition phase. Using locally sourced resources will not only help to reduce the risks associated with being a net hydrocarbon importer, but it will also act as a more environmentally friendly stepping-stone to support the evolution to a more sustainable future,” the company noted.
It added, “We are committed to working with East Riding of Yorkshire Council and the local community to bring about the production of local hydrocarbons in a responsible manner."
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In July, Union Jack noted that it had seen “encouraging” indications from the company’s ongoing test operations of the West Newton B-1Z well located at West Newton licence.
The Company explained at the time that testing had begun in June with an initial focus on the lower portion of the Kirkham Abbey. The results of the testing operations at the well are expected to be used as “key data inputs into the ultimate development plans of PEDL183."
Rathlin, the operator of West Newton, believes the site has the potential to provide local feedstock to a Humber net zero project replacing the need for imported hydrocarbons while developing indigenous energy sources, contributing to the economic welfare of the region.
Last month, the company reported that it had generated landmark revenues of US$1m since it re-commenced production at the Wressle hydrocarbon development on 19 August 2021.
The Company holds a 40% economic interest in Wressle, which is located within licences PEDL180 and PEDL182 in North Lincolnshire, on the Western margin of the Humber Basin.
Union Jack told investors that current daily production figures are ‘well in-excess’ of the prognosed 500 barrels of oil per day from the Ashover Grit reservoir in the Wressle-1 well.
Executive Chairman of UJO, David Bramhill, commented: “The net revenues exceeding US$1,000,000 within a relatively short time frame is financially transformational for UJO.”
Addressing shareholders, Bram hill said this gives Union Jack increased confidence that the group is “set to deliver on its aim to become a self-sustainable entity in due course.”
Bramhill said UJO currently has four cash generating projects. He said revenues for FY21 are “guaranteed” to eclipse those reported upon in FY20 and for the six months to 30 June 2021.
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