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Union Jack Oil outlines extensive 2018 work plan
UK-focussed onshore oil and gas production and exploration company Union Jack Oil updated the market on its operations on Wednesday, reporting that 2018 was expected to see potentially high-impact drilling at Biscathorpe and Holmwood as well as a new planning application to be submitted during April 2018 on Wressle.
The AIM-traded firm said that in addition, results were expected from the workover of wells currently underway at the recently-acquired Fiskerton Airfield.
Discussions were also due to commence with the operator to progress potential development plans at the Dukes Wood and Kirklington oil facilities, as well as at the producing Keddington oilfield.
It said expected activity during 2018 included the PEDL182 and PEDL180 Wressle Discovery, where a new planning application was to be submitted before the end of April.
Oil production of 500 barrels of oil per day gross was expected from the conventional oil development.
At PEDL253 Biscathorpe, partner approval had been received to drill the high-impact conventional Biscathorpe-2 well during 2018 down dip from the original discovery well, and at PEDL143 Holmwood, a high-impact conventional exploration well in the Weald basin was expected to be drilled during 2018.
Holmwood was located close to the Horse Hill discovery, the board said.
At the producing EXL294 Fiskerton Airfield Oilfield, workovers were currently underway on the FA-1 and FA-3 wells.
Reprocessing of 3D data would help identify further potential drilling opportunities to increase production, the board explained.
PEDL118 and PEDL203 Kirklington and Dukes Wood had options to bring the previously-producing oilfields back into production, the board said, and were being being evaluated.
Finally, at the PEDL005(R) Keddington Oilfield, possible development plans to increase oil production were being considered.
"Union Jack is positioned to deliver ongoing news flow throughout 2018 from our onshore portfolio of producing assets, drill-ready appraisal and exploration targets given our active evaluation programme in today's attractive oil price environment," said executive chairman David Bramhill.
"Union Jack is seeing a significant effect on the value of its oil production assets resulting from an improved oil price environment."
Bramhill said the oil price also enabled the company to discuss with its partners methods to expand oil production at the existing Keddington, Fiskerton Airfield, Kirklington and Dukes Wood oilfields - all of which had production licences and dedicated production facilities, so were not as dependent upon local planning application approvals.
"I highlighted in a recent announcement that going forward we also intend to have 'a more hands on approach' with our assets and we can confirm we are actively involved in the evaluation of all our projects with our partners including making technical contributions across our portfolio resulting from our own independent technical work.
"We also intend to be more flexible and entrepreneurial in the way we pursue future acquisition and partnering opportunities while continuing to apply strict financial and technical discipline."