Union Jack Oil upbeat on decision document for West Newton

The AIM-traded firm said PEDL183 is located onshore, north of the river Humber in East Yorkshire, within the Western sector of the Southern Zechstein Basin.

Union Jack holds a 16.665% interest in the licence, which includes the West Newton A-1 and A-2 hydrocarbon discoveries.

Rathlin received a decision document from the Environment Agency on 24 April, granting a variation to the permit for the West Newton A site and associated WNA-2 testing operations.

The variation would allow Rathlin to use mechanical methods - pumpjack and nodding donkey - for lifting wellbore fluids, and for the utilisation of a smaller incineration unit during the testing of the WNA-2 well.

During drilling and early testing operations of the well, additional information was gathered that improved the understanding of the targeted Kirkham Abbey reservoir, leading to the identification of a potential oil leg overlain by an associated gas cap within the reservoir interval, Union Jack said.

Testing operations at West Newton would restart once government guidance around the Covid-19 coronavirus pandemic permits it, the required personnel and equipment become available, and the health and safety of Rathlin employees, contract personnel and the community could be ensured.

“We now have all key permits in place which allow the testing of the West Newton A-2 well,” said executive chairman David Bramhill.

“We are also seeing excellent progress with regards initial works at the West Newton B site.

“Combined with the ongoing Wressle development project where ‘first oil’ is anticipated in the second half of 2020, Union Jack is in an excellent position from both a corporate and financial situation, where we are fully funded for our drilling and development commitments during 2020.”

At 1013 BST, shares in Union Jack Oil were up 7.32% at 0.1p.