Union Jack Oil PLC (LON: UJO) noted the completion of the 22% owned Biscathorpe-2 well onshore Lincolnshire.
The well was drilled down to a total depth of 2,133 metres, but, well logging operations were delayed and certain tools could not reach target depth.
Project operator Egdon Resources told investors that the preliminary analysis indicates that the primary objective was poorly developed at the location.
Consequently, the company said that the Biscathorpe play has not been properly tested and the well results indicate the potential to be more thickly developed to the north and north-east.
Egdon noted that elevated gas readings and oil shows were recorded in a separate zone, the Dinantian Carbonate, which indicates proximity to an effective petroleum system - though it said that the formation has very low porosity and would not make an effective reservoir.
Also, a number of porous sandstone reservoir intervals were encountered in a shallower sequence, but, were interpreted as water wet.
It has been decided that the well will be sealed, giving the option for a potential side-track well in the future.
"As conveyed in the operator's narrative, the Biscathorpe-2 well has been suspended for a possible side-track at a later date once the results of the well have been incorporated into the prospect model,” said David Bramhill, Union Jack executive chairman.
"The Biscathorpe play has not been properly tested as the Basal Westphalian Sandstone did not thicken as expected in the pre-drill model hence the Biscathorpe-2 well is being suspended for possible future re-entry and side-track.
“In addition, we were encouraged by the elevated gas readings over a 99-metre interval which included a suite of gas indications C1 to C5 and nC5 which are indicative of an effective petroleum system existing in proximity to the Biscathorpe-2 well.”
Bramhill added: "Union Jack's balanced portfolio remains active with the imminent drilling of the high-impact West Newton-2 appraisal well, followed by the Wressle appeal being heard in respect of a production development decision.
“Both of these are material projects and success in either of these projects will offer significant value upside to Union Jack."