Union Jack Oil plc (LON: UJO, OTCQB: UJOGF), a UK and USA focused onshore hydrocarbon, production, development, exploration and investment company, has noted today’s announcement from Rathlin Energy U.K. Limited regarding the West Newton gas development project, located within PEDL183, onshore UK in East Yorkshire.
Rathlin, operator of the licence, has been informed by the Environment Agency, that its application on behalf of the Joint Venture partnership for the recompletion of the West Newton A-2 well has been ‘Duly Made’.
Union Jack holds a 16.665% interest in PEDL183.
Highlights
· The recompletion is designed to overcome well bore damage that was sustained during drilling and earlier drilling operations
· This is a low-cost means of further derisking the sub-surface element of the West Newton project and gathering data to input into the design of a horizontal production well
· The West Newton domestic gas development opportunity will form part of the transition to a low-carbon footprint for the UK’s energy sector
For the recompletion of the West Newton A-2 well to proceed, Rathlin is required to obtain consent from the North Sea Transition Authority and receive a permit from the Environment Agency.
Union Jack is fully funded for the proposed recompletion.
The full text of Rathlin’s announcement can be found here:
Rathlin Energy (UK) Ltd submits Environment Agency application to conduct a reservoir stimulation
In July this year, Rathlin Energy (UK) Ltd made an application to the Environment Agency to conduct a reservoir stimulation within the conventional Kirkham Abbey gas reservoir in the existing West Newton A-2 well.
West Newton is a significant domestic gas development opportunity for the UK which will provide economic and environmental benefits, compared to imports on which the UK is becoming increasingly reliant.
The reservoir stimulation involves squeezing a small volume of oil-based fluid into the formation to bypass any reservoir damage created during drilling, or by other fluids previously used during well testing, and then using proppant to keep the pathways open to allow gas and hydrocarbon fluids to flow into the well at economic rates.
The application has now been ‘duly made’ and the Environment Agency will review the detailed information submitted by Rathlin.
A similar operation, referred to as a proppant squeeze, was successfully conducted in 2021 in Lincolnshire which resulted in a significant increase in production from the existing well.
The proposed operation at West Newton is a smaller scale operation and will take less than an hour to complete. Equipment needed will be similar to that previously used on the site during testing operations.
If the Environment Agency deems it appropriate to issue a permit for the operation, Rathlin understands that the Environment Agency will consult the public on the information submitted prior to issuing any permit.
Consent is required from the NSTA to conduct the reservoir stimulation. The NSTA will check that permissions from other relevant regulatory authorities are in place, including appropriate environmental permits and planning permission as well as the HSE being notified of the proposed operation.
The timeline for the proposed operation will be determined as soon as all necessary regulatory consents are in place.
Oil and gas production in the UK is in decline. Projections show a continued fall in production through to 2050.
More imports will be required to meet UK demand. In the case of gas, emissions associated with the production and transport of LNG to the UK are up to four times higher than domestically produced gas.
The UK has significant natural resources – up to 5 billion barrels of oil and gas, a 60GW target for offshore wind, up to 78GT of carbon storage potential.
It has the pipeline, processing and energy infrastructure along with a world class energy supply chain and world class people that bring it all together.
The West Newton domestic gas development opportunity will form part of the transition to a low carbon domestic energy sector.
