RE: UJO on the up19 Jan 2020 17:45
By Chris Bailey•18 Jan, 2020
After a lengthy battle between the operator, Egdon Resources along with the partners Union Jack Oil and Europa Oil and Gas, the battle to produce from this proven well is finally over.
In November of 2019, Mark Abbot and his team presented what can only be described as a 'perfect case' to planning inspector Phillip Ware. Over the 4 days of the hearing, which commenced with North Lincolnshire Council withdrawing all previous objections and accepting costs, the barrister for Egdon, Hereward Phillpot QC, was simply stunning in the way he refuted all the claims by people claiming to be locals (most if not all were activist flying pickets, attending purely to object on environmental reasons).
Mark's team provided expert witnesses, samples of the membrane to be used to protect soil, explained in great detail as to how everything would be performed on site. It was for me, always going to be a positive outcome and yesterday, the 17th January 2020, the result everyone wanted to hear was released.
So what does this now mean for Union Jack Oil?
This means that the company will be transported to profitability. From about June onwards, their share of the production will be approximately £250,000 per month based on their 27% stake in the asset. This figure could be substantially upgraded if production is raised to a possible 1000 bopd and there is potentially an opportunity to increase their share should Humber Oil withdraw their interest.
In test operations carried out in January 2015, Wressle flowed oil and gas from three separate reservoirs, the Ashover Grit, the Wingfield Flags and the *****tone Flags. This totalled 710 barrels of oil equivalent per day from all zones. Mark Abbott commented yesterday on the outcome of the appeal "We will now begin work on discharging the planning conditions and the detailed planning for the development works."
Europa Oil and Gas recently stated that this well was integral to their financial position so it shows just how important the revenue stream from this asset is to all the partners. Pre-drill gross mean Prospective Resources at Wressle as calculated by Egdon were estimated to be 2.1 million barrels of oil.
2020 is set to be a year of change for Union Jack, not only are they now about to become a profitable company from Wressle, they are also lined up for a potential pay back for their investment in West Newton, possibly the biggest onshore oil and gas discovery since Wytch Farm. With testing about to be started on the A2 well any time within the next few weeks, this project could see the company in receipt of up to £150,000,000 (one hundred and fifty million pounds) should the licence be proven up and sold on to a major. With the recent fundraising by one of the partners, Reabold Resources to invest up to £16,000,000 (16 million pounds) into testing West Newton by drilling an additional two wells, that investment would suggest not only is all the information gathe
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