Union Jack Oil today announced that material landmark net revenues, in excess of US$15,000,000 have been achieved from the Wressle hydrocarbon development, located within licences PEDL180 and PEDL182 in North Lincolnshire on the western margin of the Humber Basin.

Union Jack holds a 40% economic interest in this development.

Highlights

• Landmark US$15,000,000 revenues generated to Union Jack since re-commencement of production at Wressle during August 2021
• Well producing under natural flow with zero water cut
• Union Jack continues to be cash flow positive covering all G&A, OPEX and contracted or planned CAPEX costs, including any drilling activities for at least the next 12 months
• As of 9 May 2023, cash balances, short- term receivables and liquid investments stood at over £10,500,000
• Debt free

Executive Chairman of Union Jack, David Bramhill, commented: 
"Revenues from Wressle continue to bolster the Company's Balance Sheet.

"Since the last production update, another consistent and impressive performance from the Wressle-1 well has been recorded and the trend during 2023 remains positive with materially higher production rates than those seen on a like-for-like basis during the same time period in 2022."

Wressle

The Wressle oil discovery straddles PEDL180 and PEDL182. It lies 5km southeast of, and along the same structural trend as, the Europa-operated Crosby Warren field which has been producing oil for almost 30 years. The field was discovered by the Wressle-1 conventional exploration well which was drilled to a total depth of 2,240m (1,814m TVDSS) on 23 August 2014. Petro-physical evaluation of measurement whilst drilling (MWD) log data indicated over 30m measured thickness of potential hydrocarbon pay in three main intervals:

Ashover Grit – up to 6.1m measured thickness of potential hydrocarbon pay:

• Wingfield Flags – up to 5.64m
• Penistone Flags – up to 19.8m

Four intervals were tested between February and March 2015 flowing an aggregate 710boepd during testing operations:

• Ashover Grit – 80bopd and 47 thousand cubic feet of gas per day (mcfd), free flow;
• Wingfield Flags – up to 182bopd and 0.456 million cubic feet of gas per day (mmcfd), free flow;
• Penistone Flags zone 3 – up to 1.7 mmcfd and up to 12bopd, free flow; and
• Penistone Flags zone 3a – 77bopd, swabbed

The results facilitated the design of an Extended Well Test (EWT) programme to quantify the production levels that could be attained from pumped production. Reservoir engineering analyses indicates that an initial production flow rate of 500bopd gross from the Ashover Grit interval. A CPR was issued on 26 September 2016 which identified gross 2P reserves on the Wressle structure of 0.65mmboe in the Ashover and Wingfield Flags and gross 2C contingent resources of 1.86mmboe in the Penistone Flags. The EWT provided the basis for the Field Development Plan (FDP) which was submitted on 8 September 2016.

Works to reconfigure the site for production commenced at the end of July 2020, however production started at the end of January 2021. Modest production continued, off and on until the middle of August in 2021 and following the proppant squeeze.

KeyFacts Energy: Europa Oil & Gas UK country profile   l   Egdon Resources UK country profile   l   Union Jack Oil UK country profile

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