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.
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.