Union Jack Oil soars after 'potentially transformational' well result

Union Jack Oil's shares leapt on Monday after reporting a "potentially transformational" result at its West Newton appraisal well, where the company confirmed a substantial hydrocarbon accumulation.

The UK focused on-shore hydrocarbon production, development and exploration company said a significant liquids component was identified from core and logging data at the West Newton A-2 well in East Yorkshire, which targeted and encountered a 65 metre (net) interval in the Kirkham Abbey formation.

The well also encountered hydrocarbon shows within its secondary target, the deeper Cadeby formation, with the intersection being consistent with the West Newton A-1 well from which an oil saturated core was recovered.

David Bramhill, executive chairman of Union Jack, said: "The initial results of the West Newton A-2 appraisal well exceed our expectations. The most important aspect of this drilling exercise is that the operation was undertaken in a safe and competent manner by the operator."

Drilling operations have now concluded but further extended well testing is now expected to commence during the current quarter.

"These encouraging results suggest to us that the West Newton project has the potential to achieve our goal of transforming Union Jack from a junior exploration and production company into a self-sustaining mid-tier hydrocarbon producer," said Bramhill.

Union Jack Oil's shares were up 37.06% at 0.23p at 1314 BST.