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Move over Sirius Minerals!! Well success puts Union Jack Oil’s Yorkshire project on the map

"The initial results of the West Newton A-2 appraisal well exceed our expectations,” said David Bramhill, Union Jack’s executive chairman

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He added: "We rank the West Newton project very highly and look forward to the results of testing during Q3 2019"

Move over Sirius Minerals PLC (LON:SXX), Yorkshire has a new exciting project for London’s natural resource investors.

Shares in Union Jack Oil PLC (LON:UJO) soared 50% higher on Monday after breakthrough well result at the West Newton project.

Prior to drilling, the West Newton A-2 appraisal well was seen to contain a 189bn cubic feet ‘best estimate’ of contingent resources - a very meaningful project, particularly onshore UK.

WATCH: Union Jack's David Bramhill 'over the moon' with significant West Newton result

But a new appraisal well in East Yorkshire has exceeded expectations, encountering some 65 metres om its main target - the conventional Kirkham Abbey formation – and analysis of the initial results indicate a ‘significant liquids’ component within the formation.

Further well testing is now planned, slated for the current quarter (Q3).

"The initial results of the West Newton A-2 appraisal well exceed our expectations,” said David Bramhill, Union Jack’s executive chairman.

He added: "We rank the West Newton project very highly and look forward to the results of testing during Q3 2019".

"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,” Bramhill concluded.

The company noted that it expects the resource estimate will be updated twice, once with the core and log analysis and once after the extended well testing.

Union Jack said the well also encountered hydrocarbon shows in the deeper Cadeby formation, a secondary target of the programme, which were consistent with prior results from the area, and, included oil saturated core.

The group said this finding was “highly encouraging” and noted that this deeper target will be tested again from the identified West Newton B location where better reservoir development is expected.

In afternoon trading, Union Jack shares were up 50% to 0.255p.

Quick facts: Union Jack Oil PLC

Price: 0.2025 GBX

AIM:UJO
Market: AIM
Market Cap: £24.52 m
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Investor Update: Union Jack's West Newton potential confirmed

Headlines from the Proactive UK newsroom. Union Jack Oil (LON:UJO) has been informed by the operator that the Kirkham Abbey reservoir in the West Newton project area contains a base case 146mln barrels of oil and up to 283mln barrels in a best case. The liquid element is much higher than...

2 days, 13 hours ago

2 min read