TIDMUJO
RNS Number : 1418X
Union Jack Oil PLC
24 April 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
24 April 2023
Union Jack Oil plc
("Union Jack" or the "Company")
Joint Venture Partner Project Updates
Union Jack Oil plc (AIM: UJO) a UK focused onshore hydrocarbon
production, development and exploration company note that Europa
Oil & Gas (Holdings) plc and Egdon Resources plc, as part of
their Interim Reports, have today published commentary on various
projects in which Union Jack hold economic interests.
Union Jack's results for the year ended 31 December 2022 will be
published on Monday 15 May 2023.
The highlights from both companies' commentaries on projects of
interest to Union Jack were as follows:
EUROPA OIL & GAS (HOLDINGS) PLC
Wressle PEDL180/182
-- Onshore UK - Wressle oilfield continues to exceed
expectations, generating strong levels of revenues and
production
-- Wressle net production increased 55% from 134 bopd to 207
bopd as the field performed better than expected
-- Wressle now the second most productive onshore UK oilfield
-- The well continues to produce under natural flow with zero
water cut and remains highly cash generative
-- A new seismic interpretation and mapping exercise across the
Wressle field has highlighted a potentially significant increase in
resources from the Ashover Grit and the results of the analysis are
now being incorporated into the field development plan. The
intention is that the next development well will be drilled from
the existing Wressle site and planning and permitting work for the
well is ongoing. The well will be drilled at the earliest
opportunity, subject to receipt of regulatory approval
-- Ongoing work to further develop the field and to utilise the
associated gas being produced from Wressle which is expected to
lead to further increases in oil production during H2 2023
-- An independent technical report has been commissioned which
will incorporate the new field interpretation, historic production
performance data and the field development plan. The report is
expected to be completed during June 2023
-- Europa contributes to the Wressle Community Fund, which has
been operating since early 2022 and provides funds to meet the
needs of local charities and community groups. The Company and its
Wressle JV partners make an annual contribution of GBP100,000 to
the fund
The Wressle oilfield's continued excellent performance has
underpinned our significant growth in revenues during the period,
and a number of projects are underway to enable increased oil
production and gas monetisation from the field. The first phase of
the gas utilisation project was completed in January whereby three
microturbines were connected to provide site power which have
resulted in a c. 10% increase in oil production. The second stage
is the installation of a gas engine to generate 1.4 MW of
electricity into a local private power network.
The first half of the financial year was a significant period
for Europa, and the outstanding performance of Wressle, our
flagship producing asset, has enabled us to strengthen our
financial foundations by continuing to deliver material cashflow,
facilitating further investment in our existing assets driven by
Wressle's impressive daily production rate. Planned gas
monetisation solutions for Wressle, coupled with the planned
drilling of a development well scheduled for H2 2023, demonstrates
our continued commitment to upgrading this key asset to augment
production and generate additional revenues, whilst also
eliminating flaring from the field.
Wressle, currently the second most productive onshore UK
oilfield, continues to surpass all expectations, and we remain
committed to further enhancing the field's efficiency and
increasing production through gas monetisation solutions, alongside
advancing the development drilling to enable further
production.
EGDON RESOURCES PLC
Wressle PEDL180/182
-- The Wressle oil field continued to be the standout asset for
Egdon, producing at an average rate of 689 barrels of oil per day
("bopd") during the period. Total field production from Wressle to
31 January 2023 stood at 357,838 barrels of oil with no water
production.
The key operational focus for the coming period will be:
-- Maintaining and enhancing the strong production performance
at Wressle whilst progressing both the gas monetisation and further
development drilling as priorities.
The standout asset for Egdon continues to be Wressle (Egdon
30%). Cumulative oil production to 31 January 2023 was 357,838
barrels and production exceeded 400,000 barrels on 28 March 2023
with no production water seen to date. Production during the Period
averaged 689 bopd. Three microturbines were connected during
January and February and have been fully operational since late
February. So far these have resulted in a c. 10% increase in oil
production when compared to that possible without the turbines
being operational and further optimisation is ongoing. Production
rates averaged 770 bopd during March 2023.
The commissioning of the micro-turbines was the first step in
the gas utilisation scheme. The second stage will be the
installation of a separate gas engine to generate and export
electricity into a local private power network. Detailed
feasibility work has confirmed that the local network can accept
c.1.4 MW of electricity and suitable used gas engines are currently
being assessed due to the long lead times for new units.
During the Period Egdon has completed reprocessing of the 3D
seismic data and finalised a new seismic interpretation and mapping
exercise across the Wressle field. This has highlighted a
potentially significant increase in resources from the Ashover Grit
at Wressle and a new Competent Person's Report has been
commissioned to consider all oil and gas bearing formations at
Wressle and incorporating the new field interpretation and
production performance data. This new technical report will inform
the optimal development of the Ashover Grit and Penistone Flags
reservoirs and we look forward to providing more details of the
forward plan once this work is complete. Planning and permitting
work is currently ongoing for a new well or wells from the existing
Wressle site. The intention will be to drill at the earliest
opportunity, subject to receipt of regulatory approval. Stage two
of the gas monetisation which will focus on gas export will also be
included in the planning application.
The Wressle Community Fund has been operating since early 2022.
In August 2022, operation of the fund was transferred to Broughton
Community and Sports Association which will run the fund to meet
the needs of local charities and community groups. The Wressle JV
is making GBP100,000 a year available to the fund.
Biscathorpe PEDL253/North Kelsey PEDL241
Biscathorpe (Egdon 35.8%) and North Kelsey (Egdon 50%) are
volumetrically significant prospects with each having gross Mean
Prospective Resources of around 6.5 million barrels. Drilling is
dependent upon the outcome of the planning appeals, but with a
positive outcome would be expected in H1 2024.
A planning hearing was held for Biscathorpe on 11 October 2022
and we await the decision from the Planning Inspectorate.
The appeal documentation for North Kelsey was submitted on 8
August 2022 and a Public Hearing is due to be held on 14 June 2023,
with a decision expected during July 2023.
Keddington PEDL005(R)
Keddington (Egdon 45%) continued to contribute tangible
revenues. A viable drilling location in the east of the field has
been identified targeting around 180,000 barrels of incremental
production. Planning is in place for this and the well is likely to
be drilled during H2 2023.
Fiskerton Airfield EXL294
Fiskerton Airfield (Egdon 80%) has remained shut-in during the
period. There remains the potential for the site to be used to
manage any produced water from other Egdon sites through the
existing water injection well.
The full reports can be viewed on the news sections of the
respective companies websites; www.egdon-resources.com and
www.europaoil.com
For further information, please contact:
Union Jack Oil plc info@unionjackoil.com
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Kasia Brzozowska
Matthew Johnson
Richard Hail
Shore Capital +44 (0)20 7408 4090
Joint Broker
Toby Gibbs
Iain Sexton
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END
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