Union Jack Oil PLC (LON:UJO)

Union Jack Oil PLC (LON:UJO)


Share Price
0.10 p
Change
0 (0.00 %)
Market Cap
£10.24 m
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Union Jack Oil PLC

Union Jack Oil plc is an onshore oil and gas exploration company with a focus on drilling, development and investment opportunities in the United Kingdom hydrocarbon sector listed on the London Stock Exchange AIM market (Ticker: UJO).

EPIC: UJO
Market: AIM:UJO
52-week High/Low: 0.17p / 0.08p
Sector: Energy
Market Cap: £10.24 m
Website: unionjackoil.com
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Big Picture – A Deep Dive Examination of Union Jack Oil PLC


oil rig
The core of the portfolio is in the East Midlands Basin, which includes the Wressle-1 oil discovery, a share of production from the Keddington oil field and a raft of drill-ready exploration and appraisal targets

Union Jack Oil PLC Snapshot

Our strategy is the rapid appraisal and exploitation of the assets currently owned. Simultaneous with this process, the Company’s management expect to continue to use their expertise to acquire further licence interests over areas where there is a short lead time between the acquisition of the interest and either exploration drilling or initial production from any oil or gas fields that may be discovered.

The Company currently has interests in six licences in the East Midlands Basin and one licence in the Weald Basin.

Union Jack remains in negotiation with several established companies to acquire licence interests in suitable projects.

Projects


Biscathorpe

PEDL253 – Biscathorpe

Union Jack holds a 22% interest in PEDL253, located within the proven hydrocarbon fairway of the Humber Basin, on trend with the Saltfleetby gas field and the Keddington oil field which produces from the Upper Carboniferous Westphalian aged reservoir sandstones.

The drilling of the Biscathorpe-2 well was intended to test the geological model in which the Wetphalian sands thicken down flank of Dinantian structural highs.

The Biscathorpe-2 well was drilled to a Total Depth of 2,133 metres within the Dinantian Limstone.

Preliminary analysis idicates that the primary objective, the Basal Westphalian sandstone which was encountered high to prognosis, was poorly developed at the Biscathorpe-2 location and was not thickened with respect to Biscathorpe-1 as expected in the pre-drill model.

The Biscathorpe “play” has thus not been properly tested by the well with the results of the well indicating that the Basal Westphalian sandstone has potential to be more thickly developed to the north and north-east of the Biscathorpe-2 location away from what appears to be a more extensive than expected palaeo-high.

The well recorded elevated gas readings and oil shows supported by calculated oil saturations in the Dinantian Carbonate over a 99 mere interval indicating proximity to an effective petroleum system. A number of porous sandstone reservoir intervals were encountered in the shallower Westphalian sequence but all were interpreted as water wet.

The well has been suspended in order to retain the option for a future side=track. This will be considered once the new well data is integrated into an updated subsurface model.

The percentage interest holdings are as follows:

 

Holders

Holding (%)

Egdon Resources (Operator)

35.8

Montrose

22.2

Union Jack Oil

22.0

Humber Oil & Gas

20.0

 

100.0

 

Biscathorpe

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North Kelsey

PEDL241 – North Kelsey

Union Jack hold a 20% interest in PEDL241 containing the North Kelsey Prospect.

PEDL241 is located within the proven hydrocarbon fairway of the Humberside Platform.

This prospect is a well-defined tilted fault-block mapped from 3D seismic. Based on offset well data, potential exists for up to four separate oil bearing stacked conventional reservoir intervals in the Chatsworth, Beacon Hill, Ravensthorpe and Santon sandstones. The nearby Crosby Warren oil field and the Brigg oil discovery are productive from the Upper Carboniferous Namurian 
aged reservoirs.

The gross mean combined Prospective Resources for these multiple objectives, as calculated by Egdon, are estimated to be 6.7 million barrels of oil.

The subsurface target location to evaluate the exploration of the North Kelsey Prospect has been defined and a surface drilling location has been identified from which a vertical well can be drilled.

In December 2014, the Planning and Regulation Committee of Lincolnshire County Council granted planning consent for the drilling and any subsequent testing of the North Kelsey-1 well.

The percentage interest holdings are currently as follows:

Holders

Holding (%)

Egdon Resources (Operator)

80.0

Union Jack Oil

20.0

 

100.0

 

Wressle

PEDL180 and PEDL182 – Wressle Discovery
PEDL182 – Broughton North

Union Jack holds an 27.5% interest in PEDL180 and PEDL182 located in Lincolnshire, on the Western margin of the Humber Basin and is on trend with the producing Crosby Warren oil field and the Brigg-1 oil discovery, situated to the immediate northwest and southeast of the licence respectively.

In July 2014 the Wressle-1 conventional exploration well was spudded. The Wressle-1 Prospect was defined on proprietary 3D seismic data acquired by Egdon in 2012, and the well was drilled as a deviated well to a total depth (TD) of 2,240 metres and was designed to intersect a number of prospective Upper Carboniferous age sandstone reservoirs in a structurally favourable position near the crest of the Wressle structure. Pre-drill gross mean Prospective Resources at Wressle as calculated by Egdon were estimated 
to be 2.1 million barrels of oil.

On 23 August 2014 TD was reached and elevated mud gas readings were observed over large parts of the interval from the top of the Penistone Flags reservoir target (1,831.5 metres MD – measured depth) to TD.

The well was logged using measurement whilst drilling (MWD) logging tools run on the drill string. Petrophysical evaluation of the log data indicated the presence of hydrocarbon pay in three intervals.

Penistone Flags – up to 19.8 metres measured thickness (15.9 metres vertical thickness)

Wingfield Flags – up to 5.64 metres measured thickness (5.1 metres vertical thickness)

Ashover Grit – up to 6.1 metres measured thickness (5.8 metres vertical thickness)

Subsequent to the year end, in February 2015 shareholders were updated on the initial successful Ashover Grit Flow Test which recorded 80 barrels of oil per day (bopd) and 47 thousand cubic feet of gas per day during a 16 hour main flow period. 
No appreciable volumes of water were observed. The oil is of good quality with a gravity of 39-40º API.

Following the Ashover Grit test shareholders were updated on the initial successful Wingfield Flags Flow Test which recorded up to 182 barrels of oil per day (bopd) of good quality oil with a gravity of 39-40º API along with up to 456 thousand cubic feet of gas per day.

The next horizon to be flow tested was the Penistone Flags, the last of three hydrocarbon bearing zones identified in the well. The Penistone test produced gas at restricted flow rates of up to 1.7 million cubic feet of gas per day (mmcfd) with associated oil of up to 12 barrels of oil per day (bopd) and no free water from a 9 metre perforated zone at the top of the formation. Gas flow rates were constrained by the equipment and flaring limits imposed by the environmental permit. The gas and oil are of good quality with the oil having a gravity of 35º API.

The downhole pressure data recorded during the testing will now be analysed to estimate the gas flow rates that could be achieved under production, unconstrained by the flare and permit restrictions.

A further test was carried out to evaluate the gas-oil and oil-water contacts in the Penistone Flags by perforating the formation deeper in the section. Zone 3a was perforated over a 7.5 metre interval and produced good quality oil with a gravity of 33º API. A total of 98.5 barrels of oil were recovered during the test (of which flow induced by swabbing produced 34.3 barrels of oil). This equates to approximately 
77 barrels of oil per day (bopd).

To summarise, the Wressle-1 well has flowed oil and gas from three separate reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone Flags. The flow test from Zone 3a has confirmed the presence of an oil column below the gas leg in Zone 3 of the Penistone Flags.

The downhole pressure and oil sample data from all tests will now be interpreted and integrated into an updated field model to inform future development planning.

The Broughton North Prospect is located within PEDL182 and has been generated primarily from a high quality 3D seismic data set acquired during 2012.  This exercise provided detailed structural data and enabled a bottom-hole target location to be identified for the Broughton North Prospect.

In August and November 2018 the North Lincolnshire Planning Comittee refused the extension of planning and right to develop the Wressle discovery.

The operator Egdon Resources plc appealed on these decisions and in January 2019 the Planning Inspector approved the planning extension. A further appeal in respect of development will be held later this year.

The percentage interest holdings in PEDL180 and PEDL182  are:

Holders

Holding (%)

Egdon Resources (Operator)

30.0

Europa Oil & Gas Limited

30.0

Union Jack Oil

27.5

Humber Oil & Gas

12.5

 

100.0

Wressle

Keddington

PEDL005(R) Keddington

Union Jack acquired a 20% interest in PEDL005(R) incorporating the Keddington Oilfield and as a result of this transaction  will receive 20% of all production revenues from Keddington, currently producing approximately 30 barrels of oil per day from Carboniferous age sandstone reservoirs from the Keddington 3-Z well.

Recent mapping of the 3-D seismic over Keddington has indicated areas of potentially unswept oil within structural closure. Comprehensive geophysical and geological evaluation is ongoing to better define the greater Keddington area.

Keddington is located along the highly prospective East Barkwith Ridge, an east-west structural high on the southern margin of the Humber Basin. The Saltfleetby gasfield is located at the east of this ridge. The Biscathorpe Prospect (Union Jack 22%), is located to the west and the Operator`s Best Estimate of gross Prospective Resources is 14 million barrels of oil and with an attractive geological chance of success (“COS”) of 40%. A conventional well at Biscathorpe is planned to be drilled in October/November 2018.

Additionally, there is also the potential for stratigraphic trapping at Biscathorpe, which, if present, could increase the expected gross Prospective Resources to 41 million barrels of oil.

PEDL005(R) also contains a portion of Louth and the entire North Somercotes gas prospect. The latter is estimated by the Operator to contain gross mean Prospective Resources of 11 billion cubic feet of gas with a COS of 25%. The interests held in

PEDL005(R) following the transaction are as follow:

 North Somercotes Prospect

Located on the margins of the Humber Basin, the North Somercotes gas prospect is within PEDL005(R) to the north of the Saltfleetby gasfield and is estimated by the Operator to contain gross mean Prospective Resources of 11.0 billion cubic feet of gas. North Somercotes is estimated by the Operator to have a geological COS of 25 per cent.

 

  Keddington Oilfield PEDL005(R)Excluding Keddington
Egdon Resources U.K. Limited 45% 65%
Terrain Energy Limited 35% 15%
Union Jack Oil plc 20% 20%
 
 
 

 

Directors

David Bramhill, Executive Chairman, 66
Mr Bramhill has over 40 years’ experience in the natural resources industry. Mr Bramhill has directed and managed several energy companies and was the former managing director of OilQuest Resources plc, subsequently acquired by EnCore Oil plc. Mr Bramhill was an executive director at the time of Nighthawk Energy plc’s AIM flotation in March 2007 and a non-executive chairman of Wessex Exploration plc when that company floated on AIM in March 2011. He resigned from these companies in 2010 and 2012 respectively. Mr Bramhill had previously consulted in an engineering capacity for over 20 years on projects for Shell, ExxonMobil, Petrofina, BP and numerous other international energy companies.

Joseph O’Farrell, Executive Director, 65
Mr O‘Farrell has over 30 years’ corporate experience in the hydrocarbon and mining industry. He has managed several energy companies and is a former director of OilQuest Resources plc and Nighthawk Energy plc, having been a director of these two companies at the time of their respective flotations on AIM. He has assisted a number of companies working in conjunction with corporate advisers in pre- IPO fundraising and project acquisition.

Graham Bull, Non-Executive Director, 71

Mr Bull is a geologist with 46 years of international oil and gas industry exploration experience.  Following graduation from the University of Leicester in 1968 with a BSc Hons Geology he worked in Canada and held positions with Chevron, Dome Petroleum, Siebens Oil and Gas and Poco Petroleum and also provided exploration expertise to a Canadian drilling fund. He returned to the UK in 1982 taking the position as Chief Geologist to Sovereign Oil and Gas plc. In addition, Mr Bull has operated as a geological adviser for EnCore Oil plc (formerly OilQuest Resources plc), Premier Oil plc, Cirque Energy and DSM Energy. He is currently an exploration geological consultant working on Northwest Europe offshore and onshore United Kingdom and other international areas. Mr Bull is a member of the Petroleum Exploration Society of Great Britain, the American Association of Petroleum Geologists and a Fellow of the Geological Society of London.

Raymond Godson, Non-Executive Director, 73
Mr Godson is a chartered accountant with 40 years experience in the provision of oil and gas related services to energy companies. Mr Godson joined the Rio Tinto group in 1973 where he spent 16 years rising to become the financial and commercial director of the oil and gas subsidiary RTZ Oil & Gas Limited. In 1988 he joined Teredo Petroleum PLC (“Teredo”) where he became the managing director in 1992. Following the takeover of Teredo in 1993, he became a full time accountant in general practice, where the majority of his business has been oil and gas related. Mr Godson acted as Company Secretary for Fusion Oil & Gas plc from IPO to its takeover by Sterling Energy Plc. He was subsequently company secretary for both Ophir Energy Plc and Aurelian Oil & Gas Plc. He is currently an executive director of Montrose Industries Limited, Excalibur Exploration Limited and Trajan Oil & Gas Limited.

Significant Shareholders

   9.77%  Jim Nominees Limited
   8.86%  HSDL Nominees Limited
   6.24% Barclayshare Nominees Limited
   6.04% TD Direct Investing (Europe) Limited

Contact Us

Union Jack Oil plc
6 Charlotte Street
Bath BA1 2NE

Telephone:+44 (0) 1225 428139
+44 (0) 778 7 160682
Fax: +44 (0) 1225 428140

[email protected]

 

Nominated Adviser

Shore Capital and Corporate Limited,

Bond Street House,

14 Clifford Street,

London W1S 4JU,

England

 

Joint Broker

Shore Capital Stockbrokers Limited,

Bond Street House,

14 Clifford Street,

London W1S 4JU,

England

 

Joint Broker

SP Angel Corporate Finance LLP,

Prince Frederick House,

35-39 Maddox Street,

London W1S 2PP

England

 

Auditor

BDO LLP,

55 Baker Street,

London W1U 7EU,

England

 

Registrars

Computershare Investor Services PLC,

The Pavillions,

Bridgewater Road,

Bristol BS13 8AE,

England

 

Solicitors

Osborne Clarke,

2 Temple Back East,

Temple Quay,

Bristol BS1 6EG,

England

 

Bankers

Royal Bank of Scotland,

8-9 Quiet Street,

Bath BA1 2JN,

England

 

Public Relations Consultants

Yellow Jersey PR Limited,

South Building,

Upper Farm,

Wootton St. Lawrence,

Basingstoke RG23 8PE,

England

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