Union Jack Oil PLC (AIM:UJO) has shared an update on its activities at West Newton, in Yorkshire, where a newly revised drilling programme is now expected to see a new well, WN-A3, drilled in late 2024.
The new well is planned to be twinned with the West Newton A-1 discovery well, aiming for significant cost savings. Additionally, the drilling efforts will evaluate a secondary target in the deeper Permian Rotliegend Sandstone.
It comes after Union Jack recently announced a series of deals in the US to diversify and build a new spoke of its business in Oklahoma. This latest news in the UK, meanwhile, confirms the company’s commitment to its remaining portfolio of British assets.
"Together with our joint venture partners at West Newton, we have embarked on delivering a viable drilling programme, planned to be executed in late 2024, with the potential for an early single gas well development following successful testing,” executive chair David Bramhill said in a statement.
"We plan to expedite the drilling of West Newton with the deviated WN-A3 appraisal well as soon as all remaining regulatory permissions have been granted. Discussions are already underway with the relevant authorities and work has commenced to progress drilling.”
Bramhill added: "Our revised drilling plan offers significant cost-savings without compromising any aspects of the project. The objective is to develop what we know to be a material onshore gas resource located in an area with excellent access to local and national infrastructure and an attractive domestic gas off-take market.
"Going forward, the West Newton drilling plan is cost-effective with an above-average chance of success, offering a rapid early-stage development scenario with access to significant early cash flows, if successful.
Union Jack owns a 16.665% economic interest in West Newton, alongside partners Reabold Resources and Rathlin Energy.