Union Jack Oil PLC (AIM:UJO) told investors that the West Newton well could, according to a model, flow at an initial rate of 5,900 barrels of oil equivalent per day from a horizontal well.
The assertion is based on results of a modelled flow rate analysis which was fed with data from the well test programme that was carried out in the second half of last year, where it is drilled into a gas zone.
RPS Group (LSE:RPS), which authored the study, also indicated that a horizontal well into an oil zone could flow an average of 1,000 bopd.
Fluid analysis, meanwhile, confirms that hydrocarbon liquids recovered to surface are low specific gravity, low viscosity, light oil or condensate with an API ranging from 45.9 to 49 degrees. The gas that was recovered to surface was said to good quality with high heat content.
"We are encouraged by the RPS review which continues to underline West Newton's potential as a material hydrocarbon producer,” said David Bramhill, Union Jack chairman.
"This initial analysis confirms the significance of the in-place resource and crucially, has de-risked the project by indicating the potential recovery of what we can now confirm to be high-quality light oil, in addition to good quality gas.”
Bramhill added: "Ultimately, all of the analysis currently being undertaken is aimed at reducing risk and providing the Joint Venture with sufficient data to develop our forward plan for the next phase of activity at West Newton.
"Further work, including lab-based analysis of the core under reservoir conditions is underway, which will further inform optimal future drilling and completion methods at West Newton.”