WTI $102.98 +$7.94, Brent $106.64 +$8.62, Diff -$3.66 +98c, NG $4.99 +24c, UKNG 256.2p +2.3p

Oil price

A sharp rise in crude yesterday as there were admittedly vague stories of China giving support to Russia in Ukraine. Also most people are saying that Russia is still selling most of its crude, some will slow in April as the cuts bite.

Union Jack Oil/ Reabold Resources

Union Jack Oil and Reabold Resources have announced that the East Riding Planning Committee has approved the planning application for drilling and production at the West Newton A site and have separately approved a time extension to allow further exploratory drilling at the West Newton B site.

In September 2021, the Oil and Gas Authority’s domestic oil and gas production supply forecast were seen to fall below the Climate Change Committee projections for domestic oil and gas demand based on its Balanced Net Zero Pathway to 2050.

The current crisis has made even more clear the significant domestic oil and gas supply gap that will need to be filled either by further imports or new domestic production.  

The West Newton project is expected to support security of supply, contribute to reducing the widening supply gap and bring meaningful local inward investment and employment to the East Riding, consistent with the government`s levelling-up agenda.

Union Jack holds a 16.665% economic interest in PEDL183, encompassing an area of 176,000 acres and located within the Western Sector of the Southern Permian Basin, onshore UK north of the river Humber.   PEDL183 contains the West Newton A-1, A2 and B1z hydrocarbon discoveries.

For Union Jack this is clearly very important news but nowadays success or failure at West Newton isn’t the drag on expectations that it might once have been. This is because of the huge success at Wressle where substantial oil production has lifted the value of the project so much that revenues are piling in and the company has indicated that a dividend could be on the cards. Add an appeal at Biscathorpe and the UJO portfolio is capable of a share price well into three figures…

Reabold holds a c. 56 per cent. economic interest in West Newton via its c. 59 per cent. shareholding in Rathlin, which, in turn, has a 66.67 per cent. interest in PEDL183. In addition, Reabold has a 16.665 per cent. direct licence interest in PEDL 183.

Click here to access the full blog   l   KeyFacts Energy Industry Directory: Malcy's Blog