Last checked at 26 Apr 2019 07:00
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement
26 April 2019
Union Jack Oil plc
("Union Jack" or the "Company")
Commencement of Drilling Operations at West Newton PEDL183
Union Jack Oil plc (AIM: UJO), a UK focused on-shore hydrocarbon production, development and exploration company is pleased to announce the commencement of conventional drilling operations at West Newton, located within PEDL183 in East Yorkshire and within the Western sector of the Southern Zechstein Basin. PEDL183 is operated by Rathlin Energy (UK) Limited.
The West Newton A-2 appraisal well, targeting the Kirkham Abbey Shoal and Cadeby Reef formations for gas and oil respectively, was spudded at 01:45 on 26 April 2019.
Union Jack has a 16.665% interest in PEDL183 which contains the significant West Newton A-1 gas discovery with a gross Best Estimate Contingent Resource of 189 billion cubic feet of gas equivalent within the Kirkham Abbey Shoal formation. In addition, there is considerable upside potential from the lower, Cadeby Reef formation, oil exploration target underlying the gas reservoir, with a gross Best Estimate Prospective Resource of 79.1 million barrels of oil equivalent.
The West Newton A-2 appraisal well will be drilled to a total depth ("TD") of approximately 2,061 metres below ground level and is expected to take circa 40 days to reach TD.
The West Newton A-2 appraisal well is fully funded and has a combined geological and commercial Probability of Success of in excess of 60% and 26% over the Kirkham Abbey Shoal and Cadeby Reef formations respectively.
David Bramhill, Executive Chairman of Union Jack, commented:
"West Newton is a near term, and potentially high impact project which, if successful would deliver a major UK onshore gas development.
"The well is fully funded from existing cash resources, and in preparation of success, also funded for any long-term gas production test, plus further technical and initial conceptual commercial studies.
"We look forward to a safe and successful drilling campaign and to reporting preliminary results from the well to shareholders and the market when available."
Competent Person's Statement
In accordance with the "AIM Rules - Note for Mining and Oil and Gas Companies", the information contained within this announcement has been reviewed and signed off by Graham Bull, Non-Executive Director, who has over 46 years of international oil and gas industry experience.
For further information, please contact:
Union Jack Oil plc | +44 (0)7787 160 682 |
David Bramhill | |
SP Angel Corporate Finance LLP | +44 (0)20 3470 0470 |
Nominated Adviser | |
Lindsay Mair | |
Richard Hail | |
Cassiopeia Services Ltd | +44 (0)7949 690 338 |
Public Relations | |
Stefania Barbaglio |