Union Jack Oil, a UK and USA focused onshore hydrocarbon, production, development, exploration and investment company notes the announcement from Rathlin Energy regarding the West Newton gas development project, located within PEDL183, onshore UK in East Yorkshire.

Rathlin, operator of the licence, has been informed by the Environment Agency, that its application on behalf of the Joint Venture partnership for the recompletion of the West Newton A-2 well has been 'Duly Made'.

Union Jack holds a 16.665% interest in PEDL183.

Highlights

• The recompletion is designed to overcome well bore damage that was sustained during drilling and earlier drilling operations
• This is a low-cost means of further derisking the sub-surface element of the West Newton project and gathering data to input into the design of a horizontal production well
• The West Newton domestic gas development opportunity will form part of the transition to a low-carbon footprint for the UK's energy sector

For the recompletion of the West Newton A-2 well to proceed, Rathlin is required to obtain consent from the North Sea Transition Authority and receive a permit from the Environment Agency.

Union Jack is fully funded for the proposed recompletion.

West Newton Development PEDL183 (16.665%)

PEDL183 is located onshore UK, north of the River Humber, encompassing the town of Beverley, East Yorkshire. The licence area is within the western sector of the Southern Zechstein Basin.

Union Jack entered into a farm-in during 2018 with Rathlin Energy as the Operator, and since that time the West Newton A-2 (“WNA-2”) and West Newton B-1Z (“WNB-1Z”) drilling programmes have yielded substantial hydrocarbon discoveries within the Kirkham Abbey formation.

Throughout 2022 and 2023, data collected during drilling operations and well testing, which included core, oil and gas samples, wireline log and well test records, were analysed by independent laboratories CoreLab, Applied Petroleum Technology (“APT”) and RPS. The results of these analyses, in conjunction with internal evaluations, have been invaluable in informing the upcoming programme of work
and future drilling plans.

Laboratory reports confirm that the hydrocarbon-bearing Kirkham Abbey reservoir is extremely sensitive to aqueous fluids and that previous drilling of the West Newton wells with water-based mud had created near well-bore damage through the creation of very fine rock fragments, affecting the natural porosity and permeability of the formation, which in turn had a detrimental effect on its ability to flow. Further analyses have concluded that the use of dilute water-based acids during well testing would have also affected the flow characteristics of the Kirkham Abbey reservoir.

These tests indicate that by drilling the Kirkham Abbey reservoir with an oil-based drilling fluid, damage to the oil and gas reservoir should be minimised.

The joint venture partners continue to plan the most efficient and economic method to convert the impressive West Newton Contingent Resource into a viable hydrocarbon development within an acceptable time frame.

A future West Newton development will benefit from being located in an area that provides access to substantial local infrastructure and could deliver significant volumes of onshore low carbon sales gas into the UK’s energy market.

KeyFacts Energy: Union Jack Oil UK country profile