Union Jack Oil (UJO ) unveiled to investors that a Carbon Intensity Study on the Biscathorpe hydrocarbon project containing PEDL253, onshore UK has reached “positive conclusions.” 

The study was undertaken on behalf of the PEDL253 JV by Gaffney, Cline & Associates, an international energy consultancy and concluded that the project has carbon intensities significantly lower than the current UK average and compared to other onshore analogues. 

Biscathorpe will seek to further reduce the project's Carbon Intensity through the utilisation of the best available techniques, including Gas-to-Grid technologies and stringent engineering specifications to minimise any venting, flaring or fugitive emissions, UJO noted. 

Based on the study, GaffneyCline estimates that the planned Biscathorpe project will have a Carbon Intensity of just 3.06 grams of CO2 per megajoule of energy created (gCO2eq./MJ). 

Commenting on the results, David Bramhill, Executive Chairman of Union Jack said, "This study is an excellent overview of the green credentials for any potential future development decision at Biscathorpe. The AA rating achieved indicates the efforts made by the Operator, Egdon, to ensure that projects under its stewardship comply with best practice.  

He said, “Union Jack and Montrose Industries Ltd support Egdon's strategy to negate the effects and threat of climate change. Union Jack's growth strategy is aligned with our Carbon Management Practice for all of our development projects in the future in order to achieve significantly lower carbon intensities than the industry average.” 

UJO outlined that its focus is to minimise emissions and the carbon footprint generated by its hydrocarbon developments ‘in the most efficient way possible’, whilst contributing positively to the growing demand for energy and hydrocarbon products in the supply chain. 

‘The demand for energy is increasing and, as the global economy recovers, hydrocarbons will continue to play an ongoing part in ensuring the energy security of the UK,’ UJO said. 

UJO stated that its development projects are located close to areas with a high demand for energy.  As a consequence, the Company said it believes that locally produced hydrocarbons may provide the benefit of displacing, to some extent, imported hydrocarbons. 

View from Vox 

Analysts at Arden Research recently concluded that Union Jack is ‘well-funded’ from its end June 2020 cash holding of £4.6m (zero debt) plus £7.0m from the September 2020 placing.    

Union Jack Oil said it believes the Biscathorpe hydrocarbon project onshore UK represents “a material and financially robust opportunity to secure an indigenous oil resource which would generate local and regional economic benefits displaying environmental advantages.” 

Egdon Resources U.K. Limited has advised the JV that additional documentation was submitted to Lincolnshire County Council in early July in response to a Regulation 25 notice arising from the initial consultation on the planning application for the Biscathorpe project. 

This information will be subject to a period of consultation before the planning application is considered by the Planning Committee which is anticipated to be in September/October 2021. 

Reasons to  UJO

UJO is an onshore oil and gas exploration firm with a focus on drilling, development and investment opportunities in the UK hydrocarbon sector, and currently holds interests in 13 licences in areas including, inter alia, the East Midlands, Humber Basin and East Yorkshire.     

West Newton     

The UK focused onshore hydrocarbon explorer holds a 16.665% interest in PEDL183, containing the conventional West Newton A-1 discovery well and WNA-2 appraisal well.      

West Newton is located at the heart of the Zero Carbon Humber project area, which aims to promote decarbonising technologies across industrial activities in the wider Humber region.     

In October 2020, it reported that the onshore West Newton B-1 ("WNB-1") well - the next well following the successful West Newton A-2 ("WNA-2") appraisal well - had been spud.      

Results from the drilling of WNB-1 are expected to inform a subsequent programme of testing to establish the well's productive capability as well as future drill operations.     

North Kelsey     

In recent months, UJO also increased its stake in the North Kelsey project by acquiring an additional 30% from Egdon Resources, taking its stake in the exploration project up to 50%.     

Further financial obligations will be equal between Union Jack and Egdon Resources, in line with both parties’ 50% stake in the North Kelsey Prospect which is located in Lincolnshire.      

The North Kelsey Prospect is a conventional oil prospect along trend from and analogous to the Wressle oil development, which lies around 15 kilometres to the northwest.      

The UK- focused group said the prospect has been mapped from 3-D seismic data and has the potential for oil in up to four stacked conventional Carboniferous reservoir targets.       

David Bramhill, Executive Chairman of UJO, described North Kelsey as “a low cost, drill-ready onshore acquisition for Union Jack in our focus area, consistent with our strategy.”      

He said a further stake in the project increases the group’s exposure to a “potentially value adding project” as well as expanding UJO’s balanced drilling and development portfolio.      

Subject to a successful farm-out, North Kelsey-1 is expected to be drilled during 2021.      

Wressle      

In recent months, Operator, Egdon Resources U.K. Limited, commenced operations to re-complete and reperforate the well located at the Wressle hydrocarbon development site.     

The Ashover Grit reservoir is expected to produce 500 barrels of oil per day at a constrained rate, increasing UJO’s net production by an additional 200 bopd when fully on stream.     

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