(Alliance News) - Union Jack Oil PLC Wednesday said Rathlin Energy Ltd is progressing plans to test West Newton A-2 well in accordance with the existing planning permission, following successful drilling at the site.
Shares in Union Jack closed down 5.5% at 0.26 pence.
Union Jack holds a 16.665% interest in this licence containing the West Newton A-1 discovery well and the West Newton A-2 conventional appraisal well.
Union Jack said based on the analysis of the data gathered while drilling, it was uncertain whether the well may flow oil or gas, or a combination of both. Additionally, the composition of the hydrocarbons would need to be determined during the well test.
"Given the uncertainty of the hydrocarbon composition, and to ensure that Rathlin has the appropriate consents in place, an application has been submitted to East Riding of Yorkshire Council for a Hazardous Substances Consent which would allow for the storage of up to 199 tonnes of crude oil which falls in category P5b," the company said.
The well test should take approximately four to eight weeks to complete and initial works to set up the well test will be undertaken during day, Union Jack noted.
"The current planning permission for the WNA site is a temporary permission which allows for the drilling and testing of up to two wells but does not provide for the continued production of hydrocarbons after the well test. Any future plans for the site would be determined based on the information gained through the well test and obtaining the necessary regulatory permissions," Union Jack added.
Union Jack (UJO)