[source: Union Jack Oil]
Union Jack Oil (UJO ) said the results of an analysis of the bottom hole pressure data acquired from the Wressle-1 well during December 2021 demonstrate the material potential of the well.
The interpretation was completed by ERCE, an independent energy consultancy, on behalf of the Wressle JV partners. Union Jack holds a 40% economic interest in the development.
Today’s results also demonstrate that production rates could be achieved once the surface facilities are optimised and a gas monetisation scheme is in place at the Wressle-1 well.
The UK-focused onshore hydrocarbon production, development and exploration company
Based on the current reservoir pressure and a flowing tubing head pressure of 400 pounds per square inch gauge, ERCE estimates that a rate of 1,216 bopd would be possible, whilst maintaining a flowing bottom hole pressure above the oil saturation pressure (“bubble point”).
At 300 psig flowing tubing head pressure, ERCE estimates the well could flow at a rate of 1,543 bopd whilst at the oil bubble point, the UK-focused onshore exploration firm noted.
In 2015, analysis of the original drill stem test (“DST”) had indicated a permeability of 55 millidarcies. Recent analysis by ERCE indicates a reservoir permeability of 80 millidarcies.
The Company explained to investors that the successful proppant squeeze undertaken on the Wressle-1 well was designed to reduce the skin factor affecting the well, and that the skin factor is an estimate of damage incurred during drilling, completion and/or testing.
Following this procedure, the skin factor of the well has dropped ‘dramatically’ from 107 to 0.2.
Commenting, Executive Chairman of Union Jack, David Bramhill, told investors: “The conclusions of the ERCE interpretation demonstrate the material potential of the Wressle-1 well and the flow rates that could be achieved from the Ashover Grit reservoir interval.”
He said: “Apart from the reserves within the Ashover Grit reservoir as currently accessed by Wressle-1, there remains a significant resource volume identified in the separate Wingfield Flags and Penistone
Flags reservoirs which await development and the progression of the proposed gas monetisation scheme which offers an additional revenue stream.”
“The Joint Venture partners look forward to unlocking the full potential of Wressle-1 and to making further announcements in respect of progress in due course,” he added.
In an operational update released on Monday, Union Jack Oil told investors that the results of a recent independent review assessing the well productivity potential from the West Newton project had continued
to underline the project’s potential as a material hydrocarbon producer.
It said the independent review was commissioned by the project’s operator, Rathlin, following the completion of the Extended Well Test programme carried out at West Newton in 4Q21.
The purpose of the review, which was undertaken by the consultancy, RPS, was to assess well productivity and investigate optimised drilling and well completion methodologies.
Overall, the RPS review concluded that the Kirkham Abbey reservoir could deliver ‘substantially higher production rates’ from horizontal wells compared to vertical wells.
Last week, Union Jack Oil said it had achieved landmark net revenues of US$2 million from the Wressle hydrocarbon development in which the company holds a 40% economic interest.
Bramhill said the revenues of in-excess of US$2m, whilst under test production, are “highly positive” for Union Jack which remains “in prime financial health, as the figures illustrate.”
“We believe that Wressle holds considerable further upside which will be demonstrated over the foreseeable future and we look forward to reporting on progress in due course,” he said.
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