Union Jack Share News (UJO)

(Sharecast News) - Onshore UK hydrocarbon exploration, development and production company Union Jack Oil reports positive conclusions from a carbon intensity study on the West Newton project, located within PEDL183 in East Yorkshire, on Tuesday.

The AIM-traded firm said the study was undertaken by international petroleum consultancy GaffneyCline, on the asset where it holds a 16.665% interest, including the West Newton A-1 and A-2 hydrocarbon discoveries.

It said the GaffneyCline study highlighted that the West Newton project has an 'AA' rating for carbon intensity, for its potential upstream crude oil production, with carbon intensities "significantly lower" than the UK average, and compared to other onshore analogues.

Based on the study, GaffneyCline estimated that West Newton could produce the equivalent of five grams of carbon dioxide per megajoule of energy created.

The study also highlighted that the number could be further reduced to 3.5 grams of carbon dioxide per megajoule of energy, by applying gas-to-grid technologies.

As the development proceeded and project knowledge increased, Union Jack said there was potential to improve the carbon intensity by further reducing fugitive, flaring and venting emissions through the use of best available technologies.

"This study is an excellent overview of the green credentials for any future development decision at West Newton," said executive chairman David Bramhill.

"The AA rating achieved indicates the efforts made by the operator, Rathlin Energy UK, to ensure that projects under its stewardship comply with best practice.

"Union Jack and Reabold Resources support Rathlin`s strategy to negate the effects and threat of climate change."

Bramhill said Union Jack`s growth strategy was aligned with its carbon management practice for all of its development projects in future, in order to achieve "significantly lower" carbon intensities than the industry average.

"The board of Union Jack believes that in these environmentally aware times, investors will only wish to commit to investments in companies and projects that support a transition to a low-carbon economy.

"As part of our ongoing strategy in respect of the environment going forward, we commit to be totally transparent in respect of our projects and on how our carbon management practice is implemented."

At 0904 BST, shares in Union Jack Oil were up 7.34% at 0.21p.