Union Jack Oil plc (UJO) is pleased to announce an update on the Extended Well Test (EWT) at the West Newton A-2 appraisal discovery well situated in East Yorkshire within PEDL183. Completion and EWT operations on the Kirkham Abbey formation in the West Newton A-2 well were temporarily suspended in August 2019.
During the early stages of completion and testing it became apparent that the Kirkham Abbey
formation which was previously expected to be principally a major gas discovery was a reservoir
containing a 20 metre gas column overlying a 45 metre liquid hydrocarbon column.
The approved testing programme for the West Newton A-2 appraisal discovery well had originally
been designed to test a gas column. Gas flow to surface was achieved and was flared during
operations, however, due to the equipment availability at the time, reservoir fluids were not
recovered. The oil zone, therefore, was not fully evaluated during the initial phase of testing.
The EWT was suspended in order to review and revise the well test design to deliver and validate this
important onshore resource.
Pumping, surface separation, fluid storage tanks and other well testing equipment has now been sourced to undertake this work. Regulatory approvals to re-commence the EWT are currently being
Once regulatory approvals have been received, the equipment will be mobilised to site at the earliest
opportunity and the EWT will re-commence.
The programme will include pulling the existing completion assembly from the well, running a new
tubing and pumping bottom hole assembly and the installation of a pumping wellhead. These
operations will be followed by the running in of the pump and well rods and the installation of a
surface pumping unit. The well will then be pumped to recover load fluid, directing all recovery
through the test unit and incinerator.
The well will be monitored for inflow and, following the EWT, will be shut in and suspended.
The cost of this additional work is already covered by an earlier cash call, of which Union Jack has
already paid for its share, and the estimated costs fit well within the original test well budget.
Statutory planning permissions are in place to drill two additional wells, the West Newton B-1 and B- 2. The locations of these wells are considered to be optimal to test the Kirkham Abbey formation and will also test the possible presence of the Cadeby formation, a further, highly important and high value target.
Union Jack, following a recent successful placing of £5 million, is more than adequately funded for the
cost of future drilling operations and any other project related works and G&A, including 3D seismic
acquisition over other potential prospects within PEDL183.
Following the completion of the EWT, ongoing costs will not be subject to any promote and all costs
will be at a percentage holding equivalent.
The PEDL183 Licence
PEDL183 covers an area of 176,000 acres and is situated near Beverley, East Yorkshire, at the Western
extent of the Southern Permian Basin. Union Jack holds a 16.665% interest in this licence, which
contains the West Newton A-1 discovery and the West Newton A-2 appraisal well.
In the United Kingdom, the carbonates of the Southern Permian Basin have targeted and produced
hydrocarbons both onshore and offshore in the Southern North Sea Gas Basin. These carbonates have
been extensively explored and produced onshore in the Netherlands, Germany and Poland, which
provide several direct analogues for PEDL183 and West Newton.
The Operator has undertaken a number of core, geochemical and other studies in respect of the West
Newton A-1 and A-2 wells and re-evaluated the volumetrics of the West Newton Kirkham Abbey
reservoir, utilising information from the A1 and A-2 discoveries, as well as 3D seismic data, the results
• Indicated a material upgrade in liquid hydrocarbons contained in the Kirkham Abbey formation
• Base Case volumetrics of:
Liquids : 146.4 million barrels (“mmbbl”) of stock tank oil initially in place (“STOIIP”)
and gas 211.5 billion cubic feet (“bcf”) of gas initially in place (“GIIP”)
• Upside Case volumetrics of:
Liquids: 283.0 mmbbl STOIIP and gas 265.9 bcf GIIP
David Bramhill, Executive Chairman of Union Jack, commented:
“We are pleased to report the progress that has been made to understand better the significance of
the West Newton discoveries, to plan the resumption of the A-2 EWT and design of the drilling
programme for 2020 following extensive and painstaking technical work executed by both Rathlin and
Union Jack`s technical teams.
“Although highlighted in an RNS previously, what had become apparent is the materiality of the size
and scale of the liquid and gas volumes in place at West Newton, which we believe are unique to UK
onshore and more representative of offshore North Sea discoveries.
“West Newton remains one of Union Jack’s flagship projects which will be evaluated in further detail
“In addition to West Newton, we also look forward in 2020 to progressing work on our other advanced
projects including first production from the development at Wressle, subject to a favourable decision
from the Planning Inspectorate, progressing the ongoing studies and appraisal of what we consider to
be a material resource at Biscathorpe, and making meaningful technical and corporate progress at
two other projects namely, the producing Keddington oil field which we consider hold untapped value
and at the drill-ready North Kelsey Prospect, where we also have high expectations.
“There is still work to be done, however, the board is confident it has excellent, value accretive
projects, whose contribution will become apparent during 2020 for which we are fully funded and we
look forward to reporting on our progress.”