Union Jack Oil PLC Project Operational Update (5937F)
November 08 2022 - 2:00AM
UK Regulatory
TIDMUJO
RNS Number : 5937F
Union Jack Oil PLC
08 November 2022
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
8 November 2022
Union Jack Oil plc
Project Operational Update
("Union Jack" or the "Company")
Union Jack Oil plc (AIM: UJO) a UK focused onshore hydrocarbon
production, development and exploration company, notes that Egdon
Resources plc ("Egdon"), has today published its preliminary
results for the year ended 31 July 2022 and provided operational
commentary on a number of projects in which Union Jack holds
material economic interests, namely, Wressle (40%), Keddington
(55%) and Biscathorpe (45%) where certain details have been
summarised below.
Highlights
-- Wressle production has significantly exceeded forecast expectations w ith zero water to date
-- Strong performance at Wressle maintained and enhanced whilst
progressing both the gas monetisation and Penistone Flags
development as priorities
-- Two stage Wressle Gas monetisation being progressed
-- Outcome of appeal on Biscathorpe planning decision expected around turn of the year
-- Subject to finalising the sub-surface location, plans for a
development well at Keddington to be drilled during 2023 to upgrade
production
Wressle (PEDL 180 and PEDL 182) - Gas Monetisation
Progressing
The implementation of a two-stage gas utilisation scheme is
currently being progressed, which will enable the oil production
limit to be lifted. For the first stage, it is the intention to
utilise the Ashover Grit gas for electricity generation and export,
for which planning is already in place. This will be undertaken in
two steps. Initially, the site diesel generator will be replaced
with a gas microturbine for site electrical power, and secondly, a
separate gas engine installed to generate and export up to 1.75 MW
of electricity into a local private power network.
It is expected that installation of the microturbine will be
completed by year end. In parallel, the sourcing of a gas engine
and equipment for step two is being expedited and further updates
on timing will be made once confirmed. The additional revenue from
monetisation of the Ashover Grit gas, together with increased oil
production rates, will have a positive impact on the value of the
Wressle field development when operational.
Stage two of the gas monetisation will focus on gas export from
the significant resources in the Penistone Flags reservoir
following a development plan and consenting process.
Executive Chairman of Union Jack, David Bramhill commented: "The
update provided today by Egdon, especially in respect of our
flagship project, the Wressle development, is particularly
encouraging.
"We now have a clear focus on our forward strategy at Wressle to
implement, as a priority, the monetisation of its gas reserves that
also facilitates optimum oil production from the producing Ashover
Grit reservoir. In parallel, the development plan and consenting
process are being progressed to enable future production of the
significant resources within the Penistone Flags reservoir.
"The additional revenue from monetisation of the Ashover Grit
gas, together with increased oil production rates, will have a
positive financial impact on revenues from the Ashover Grit and on
the value of the Wressle field development when operational.
"Wressle production over the past 12 months has been
transformational for Union Jack. Revenues are fast approaching
US$11 million and the Wressle-1 well continues to produce above
expectations."
For further information, please contact
Union Jack Oil plc info@unionjackoil.com
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Joint Broker
Matthew Johnson
Richard Hail
Caroline Rowe
Shore Capital +44 (0)20 7408 4090
Joint Broker
Toby Gibbs
Iain Sexton
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