[source: Union Jack Oil]
Union Jack Oil (UJO ) which holds a 40% shareholding in the Wressle Project, has noted the update published today from Egdon Resources plc (), the Wressle project operator and 40% shareholder as part of its unaudited results for the six months ended 31 January 2022.
Egdon have reported that production at Wressle has significantly exceeded the original 500 barrels of oil per day ("bopd") expectation and is currently producing at permit constrained rates of 760-800 bopd following upgrades to the production facilities.
Furthermore, instantaneous flow rates of over 1,000 bopd have been achieved with early restrictions to production having been successfully addressed through improvements and modifications to the site facilities with production controlled by the 10 tonnes per day gas incineration boundary, regulated by the Environmental Agency ("EA") Permit, to between 760 to 800 bopd gross (304 to 320 bopd net to Union Jack).
Furthermore, Union Jack noted the likely gas monetisation approach will be to export gas via a short (600 metre pipeline) from the Wressle site into the gas distribution network, which is expected to be completed as early as winter 2022. Once the gas monetisation development is complete, this production limitation will be eliminated and the production rate is expected to increase significantly.
This export route will also be available in the longer term for the development of the Penistone Flags reservoir where detailed work is underway to produce the gross Mid-case Contingent Resources of 1.53 million barrels of oil and 2 billion cubic feet of gas.
In addition to the update on Wressle, Union Jack highlighted Keddington (55%) continues to contribute tangible revenue; Fiskerton Airfield (20%) continued production during the period; a comprehensive appeal against the earlier refusal to planning consent at Biscathorpe (45%) has been filed; an appeal against the planning permission refusal at North Kelsey (50%) will be brought forward and a programme to plug and abandon the existing Dukes Wood-1 oil well and to recomplete for geothermal heat production at Dukes has been submitted to North Sea Transition Authority ("NSTA"), formerly known as the Oil and Gas Authority.
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Significant kudos to the management team at Egdon Resources, who have successfully navigated difficult operating conditions at Wressle since production commenced at Wressle-1 in January 2021.
Today, the cumulative oil production at Wressle has now exceeded 150,000 barrels of oil with zero formation water produced to date.
Importantly for forward looking investors, a revised Field Development Plan was submitted to the NSTA during April 2022 as the likely gas monetisation approach will require regulatory Planning and EA consents. If the current schedule of work is completed towards the end of 2022 - UJO will be exporting gas to the grid in time for gas sales this coming winter!
Shares in Union Jack have performed strongly over the past 3 months from lows of 13.5p to 12 months highs of 30.5p. Todays update from Wressle should provide investors with further confidence who will undoubtedly be rewarded handsomely if Wressle can deliver gas to the grid during the coming winter months at current spot prices.