Union Jack Oil PLC (AIM:UJO) has updated on the West Newton project, near the river Humber, where testing has identified a significant hydrocarbon column.
The company, in a statement, said that a column of some 118 metres was demonstrated on completion of drilling at the West Newton B site.
A 44-metre section of the Kirkham Abbey formation was perforated in the West Newton B-1z well and hydrocarbons were produced to surface – as described by the company, good quality gas was recovered along with liquid hydrocarbons.
"We are highly encouraged by these initial results from an ongoing multi-well appraisal testing and drilling campaign at West Newton that has confirmed there are significant hydrocarbons in place and an active hydrocarbon system present,” said executive chairman David Bramhill.
"Our enthusiasm is borne out by the return of hydrocarbons to surface at this ongoing and early stage testing of the Kirkham Abbey formation, natural fracturing and significant fluid injection rates of 5.7 barrels per minute (8,208 barrels per day).
"Following these promising initial results at the B1z well equipment is currently being mobilised to the A-2 well site for the recommencement of testing.”
It is suspected that the Kirkham Abbey formation, in this location, is subject to near well bore formation damage which prevents optimum hydrocarbon flow and subsequently, the company intends to carry out some form of remedial action (with plans informed by further analysis).
The well is expected to be suspended as a ‘future producer’.
Elsewhere, at the West Newton A site, the company is now preparing for an extended well testing operation which will address a significant hydrocarbon (around 65 metres). The company noted that the previously completed zone at West Newton A has been shut-in for around two years.
Union Jack highlighted that it remains fully funded for its planned well testing programme.
"The joint venture partners are resolved to unlocking West Newton`s inherent value and generating a successful return on capital invested,” Bramhill added.
"We look forward to reporting on progress at both wells going forward."