Union Jack Oil (AIM:UJO) and Reabold Resources (AIM:RBD) have hailed positive results from a carbon intensity study at the West Newton field within PEDL183 in East Yorkshire.
Union Jack holds a 16.665% interest in the PEDL 183 licence which includes the West Newton A-1 and A-2 hydrocarbon discoveries while Reabold holds around 39% in West Newton via its 59% equity interest in the site’s operator Rathlin which holds 66.6%.
The AIM-listed firms said the study was undertaken by international petroleum consultancy Gaffney, Cline & Associates Ltd ("GaffneyCline") on the West Newton hydrocarbon project.
The project was given an AA rating by GaffneyCline for carbon intensity, the best possible grade for low carbon emissions from potential upstream crude oil production.
Shares in Union Jack Oil were trading 6.33% higher at 0.21p on Tuesday morning.
The GaffneyCline study stated that the West Newton field has carbon intensities "significantly lower than the UK average and also compared to 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 this number could be further reduced to 3.5 grams of carbon dioxide per megajoule of energy by applying, inter alia, gas to grid technologies.
As development proceeds and project knowledge increases, Union Jack said there is potential to improve the Carbon Intensity ‘by further reducing fugitive, flaring and venting emissions through the use of best available technologies.’
Shares in Reabold Resources were trading 6.09% higher at 0.61p on Tuesday morning.
The project’s focus is to minimise emissions and the carbon footprint generated by its hydrocarbon developments ‘in the most efficient way possible, whilst continuing to contribute positively to the growing demand for energy and hydrocarbon products in the supply chain.’
"This study is an excellent overview of the green credentials for any future development decision at West Newton,” said David Bramhill, Executive Chairman of Union Jack.
“Union Jack and Reabold Resources support Rathlin`s strategy to negate the effects and threat of climate change,” he commented.
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.”
"This is a material development for West Newton, which suggests the field could be a low-carbon energy producer, in line with the UK government's focus on low-carbon efficient energy sources,” added Stephen Williams, co-CEO of Reabold.
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