Union Jack Oil (UJO) , the UK focused oil and gas exploration and development company, released interims on Monday highlighting the development progress it’s made in three key projects.
The company’s flagship asset West Newton was drilled in June and found both gas and oil in the reservoir, which exceeded the expectation that the project was only a pure gas play.
David Bramhill, Executive Chairman of Union Jack said: "At West Newton A-2, the result of the Extended Well Test has the potential to dramatically transform Union Jack.”
He added: “We anticipate further progress in our ongoing technical evaluation and appraisal of the West Newton A-1 and A-2 discoveries in the coming months that will help us confirm that West Newton is one of the largest onshore UK oil and gas ventures in recent decades.”
At Biscathorpe, an independent report upgraded the Biscathorpe-2 well result, confirming the likely presence of a 35 metre column of good quality oil within the Dinantian interval.
Mr Bramhill said that a “technical evaluation at Biscathorpe also has the potential to identify a material resource with significant upside, as in the case with West Newton.”
Union Jack Oil has a 22% interest in PEDL253 which contains the Biscathorpe prospect, operated by Egdon Resources, and a 16.665% interest in PEDL183 where West Newton A-2 is located and operated by Rathlin Energy Limited.
At Union Jack’s Wressle oil discovery, the North Lincolnshire Council announced it will withdraw its case to appeal at the Public Enquiry held on 5 November 2019, subject to agreement of planning conditions.
Mr. Bramhill said that if Wressle goes forward, he expects Union Jack to be converted into cash flow positive at the corporate level.
Union Jack Oil’s cash balance was £2.8 million as at 20 September 2019
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