Union Jack Oil PLC (LON:UJO) has told investors that drilling is due to kick off in “the next few weeks” at the West Newton project, where an appraisal well will follow up last year’s successful discovery.
The plan also includes the combined testing of the new well, West Newton B-1 (WNB-1), and the existing West Newton A-2 (WNA-2) discovery well.
The base-case estimates for the project see some 146.4mln barrels of oil initially in place and 211.5bn cubic feet of gas, whilst the upside version anticipates 283mln barrels of oil and 265.9bn cubic feet of gas.
Executive chairman David Bramhill said he is looking forward with enthusiasm at the West Newton plans.
"The drilling of the WNB-1 well is important for the West Newton project for appraisal of the Kirkham Abbey formation that was penetrated successfully in A-2 well as well as targeting the deeper and potentially significant Cadeby prospect,” he said in a statement.
“We are delighted that the operator has managed to make excellent progress with the B site operations despite the extreme challenges thrown up by events since March 2020. We are fortunate to be in a position where the West Newton JV is fully funded for its planned drilling and testing activities.”
Bramhill added: "The potential of the onshore West Newton project to Union Jack is significant due to its oil and gas volumes and reduced onshore development costs compared to alternatives resulting in economics that are highly favourable and a very valuable project from an industry perspective.”