Union Jack Oil (AIM: UJO ) said the West Newton B-1 appraisal well (“WNB-1”) where drilling operations are on-going has now been drilled safely to a Total Depth of 2,295 metres.
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.
UJO previously told investors that its onshore WNB-1 well, the next well following the successful West Newton A-2 ("WNA-2") appraisal well, had been spud back in October 2020.
The WNB-1 well is targeting the same conventional reservoirs in the Kirkham Abbey and Cadeby carbonate formations that were encountered by the recently drilled WNA-2 well.
As a result of drilling reported today, UJO said it has encountered both the primary and secondary objectives at WNB-1, the Kirkham Abbey and Cadeby formations, respectively.
It said that the Kirkham Abbey formation indicated a hydrocarbon charge based on wireline logs, cuttings and mud gas readings while the secondary target, the Cadeby formation, contained insufficient reservoir development within the targeted slope environment.
The Joint Venture has now commenced a side-track drilling operation from the WNB-1 well and following preparatory engineering exercises the West Newton B-1Z (“WNB-1Z”) will be drilling ahead during the next few days.
The objective of the WNB-1Z side-track well is to further appraise the Kirkham Abbey formation on a structurally superior location, targeting enhanced reservoir quality and on-trend with the previously discovered Kirkham Abbey accumulations, the company outlined.
The information derived from both the WNB-1 and WNB-1Z wells will provide further data to inform ‘the optimal locations of future development wells’ at the West Newton project.
UJO said drilling activities at the West Newton B site are ongoing and that shareholders will be updated following the completion of drilling operations and evaluation ‘in due course.
Shares in Union Jack Oil have traded within a tight range of 0.14p and 0.16p over the past month to open down this morning at 0.125p with the shares trading down to 0.107p in early trading following the announcement.
Reasons to Follow on Union Jack Oil
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.
Last month, 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 weeks, UJO has 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.
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