West Newton data suggested the resource could be “potentially the largest hydrocarbon discovery onshore UK since 1973” according to Sachin Oza, Co-CEO of Reabold.
The West newton A-2 conventional appraisal well operated by Rathlin Energy, encountered “substantial hydrocarbon accumulation” within a net 65 metre enterval.
The preliminary data suggests that the 2C Contingent Resources is at least 189 Billion Cubic Feet of Gas, or 31.3 million barrels of oil.
Union Jack Oil shares surged 38% to 0.235p after the appraisal well results. It holds a 16.665% interest in the license, located near Hull.
The firms involved highlighted that the proximity to the abundance of production infrastructure near Hull.
Sachin Oza, Co-CEO of Reabold, commented: “The results of the well have exceeded our expectations and have also shown a significant liquid hydrocarbon volume which has increased our excitement and the future value of the field materially.”
Shares in Reabold Resources , who hold a 35% interest in the operator Rathlin Energy, rose 27% to 1.05p
David Bramhill, Executive Chairman of Union Jack, also said the well exceeded expectations, adding: “The most important aspect of this drilling exercise is that the operation was undertaken in a safe and competent manner by the operator.”
"These encouraging results suggest to us that the West Newton project has the potential to achieve our goal of transforming Union Jack from a junior exploration and production company into a self-sustaining mid-tier hydrocarbon producer"
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