TIDMUJO
RNS Number : 2728Y
Union Jack Oil PLC
02 January 2024
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is Disclosed in accordance with
the Company's obligations under Article 17 of MAR.
2 January 2024
Union Jack Oil plc
("Union Jack" or the "Company")
PEDL 180 and PEDL 182 Competent Person's Report by ERCE
Upgraded Reserves for the Ashover Grit and Wingfield Flags
Formations
Penistone Flags Contingent Resources Upgrade and
Reclassification to Reserves
Union Jack Oil plc (AIM:UJO), an onshore hydrocarbon production,
development and exploration company, principally focused in the UK,
is pleased to provide its summary of the Competent Person's Report
("CPR" or the "Report") for the Wressle field ("Wressle") and
Broughton North Prospect, dated 31 December 2023, prepared by ERC
Equipoise Ltd ("ERCE" or "Competent Person").
The Executive Summary from ERCE's Report has been published on
the Company's website www.unionjackoil.com.
Union Jack holds a 40% economic interest in PEDL180 and
PEDL182.
HIGHLIGHTS
-- 263% increase in 2P Reserves compared to 2016 CPR
-- Reclassification of 1,883 mboe in Penistone Flags Contingent Resources to 2P Reserves
-- 59% upgrade to the Ashover Grit and Wingfield Flags Estimated Ultimate Recoverable ("EUR")
-- 23% upgrade to Broughton North Prospective 2U Resources
David Bramhill, Executive Chairman of Union Jack commented:
"Based on the information contained within the Wressle CPR, a 263%
increase in 2P Reserves is indicated.
"Today's announcement marks the successful conclusion of the
detailed technical programme that has been undertaken on Wressle
and the wider PEDL180 and PEDL182 licence areas. This comprehensive
programme has involved the reinterpretation of the reprocessed 3D
seismic, integration of the results of the well testing programme
and production data developed in the period to July 2023.
"The additional data and enhanced understanding have led to the
material upgrades in the Reserves of the Ashover Grit, Wingfield
Flags and Penistone Flags, and the increase in Broughton North's
Prospective Resources.
"The increase in Wressle's Reserves vindicates the focus by the
JV partners management of the field's production to maximise
recoverable volumes. This provides further support to the
development approach we have undertaken to date.
"The installation of artificial lift on the Wressle-1 well
marked the start of the next phase of Wressle's development, which
will also focus on the export of gas production to the UK National
Transmission System, recently approved by the JV.
"Following the identification of the material increase in
Reserves and Resources, we look forward to 2024 with enthusiasm,
where we expect to be able to continue to crystallise the potential
additional value of Wressle for the benefit of UJO's
shareholders."
Competent Person's Report
ERCE has made an independent estimate of the hydrocarbon
Reserves and Resources (Contingent and Prospective) associated with
Wressle and the Broughton North Prospect, located in onshore
licences PEDL180 and PEDL182 on the western margin of the Humber
Basin in Lincolnshire.
The CPR was prepared on behalf of the Operator, Egdon Resources
U.K. Limited, Union Jack and Europa Oil & Gas Limited.
In the preparation of the Report, ERCE has adopted the June 2018
SPE/WPC/AAPG/ SPEE/SEG/SPWLA/EAGE Petroleum Resources Management
System ("PRMS") as the standard for classification and reporting. A
glossary of all technical terms used is included in the Report.
ERCE has produced the CPR as at 30 June 2023 (the "Effective
Date"). The Report was based on information provided by the
Operator up to 24 July 2023, which has included updated seismic
interpretations and production data.
Estimates of recovery factors were prepared, based on
consideration of the results of production performance analysis,
reservoir simulation models, classical reservoir engineering
calculations and the performances of analogue fields. ERCE has
derived independent estimates of Reserves and prepared forecasts of
production of oil and gas.
Production profiles have been generated by ERCE for both
Reserves and Contingent Resources. The forecasts generated for
Reserves have then been used as input to an economic model to
undertake an Economic Limit Test ("ELT") and assess commerciality.
The economic model has been provided to ERCE by the Operator and
has been reviewed by ERCE to confirm the fiscal regime is correctly
represented.
Wressle Gross Oil and Gas Reserves (mboe)
Category Gross Reserves
---------------------
1P 2P 3P
--------------------- ------ ------ ------
2016 CPR 303 655 1,356
--------------------- ------ ------ ------
Added - - -
Produced to 30 June
2023 (519) (519) (519)
Revisions 258 354 403
Reclassified 864 1,883 3,649
--------------------- ------ ------ ------
2023 CPR 906 2,373 4,888
Reserves Change 199% 263% 261%
Source: Union Jack
Note: 1 barrel of oil equivalent ("boe") is equal to 5,714scf of natural gas
Wressle Gross Oil and Gas Reserves: Ashover Grit and Wingfield
Flags (mboe)
Category Gross Reserves
----------------
1P 2P 3P
---------------- ------ ------ ------
2016 CPR 303 655 1,356
---------------- ------ ------ ------
Added - - -
Produced to 30
June 2023 (504) (504) (504)
Revisions 244 340 388
Reclassified - - -
2023 CPR 42 490 1,240
---------------- ------ ------ ------
Source: Union Jack
Note: 1 barrel of oil equivalent ("boe") is equal to 5,714scf of natural gas
Wressle Gross Oil and Gas Contingent Resources and Reserves:
Penistone Flags (mboe)
Category Gross Contingent Resources Gross Reserves
--------------
1C 2C 3C 1P 2P 3P
-------------- -------- ---------- --------- ---- ------ ------
2016 CPR 831 1,880 3,385 - - -
-------------- -------- ---------- --------- ---- ------ ------
Added - - - - - -
Revisions 33 3 264 - - -
Reclassified (864) (1,883) (3,649) 864 1,883 3,649
2023 CPR - - - 864 1,883 3,649
-------------- -------- ---------- --------- ---- ------ ------
Source: Union Jack
Note: 1 barrel of oil equivalent ("boe") is equal to 5,714scf of natural gas
Broughton North Oil and Gas Prospective Resources
The Broughton North prospect lies within Licence PEDL180 and is
located immediately northwest of the Wressle field, across a
northeast-southwest trending fault. The majority of the prospect is
covered by the same 3D seismic survey that covers the Wressle
field.
Broughton North Gross Oil and Gas Prospective Resources
(mboe)
Category Gross Unrisked Prospective Resources
----------------
1U 2U 3U
---------------- ----------- ----------- ---------------
2016 CPR 180 494 1,156
---------------- ----------- ----------- ---------------
Added - - -
Produced to 30
June 2023 - - -
Revisions 34 115 376
Reclassified - - -
2023 CPR 213 608 1,532
---------------- ----------- ----------- ---------------
Source: Union Jack
Note: 1 barrel of oil equivalent ("boe") is equal to 5,714scf of natural gas
Competent Person's Statement
In accordance with the "AIM Rules - Note for Mining and Oil and
Gas Companies," the information contained within this announcement
has been reviewed and signed off by Graham Bull, Non-Executive
Director, who has over 47 years of international oil and gas
industry experience.
For further information, please contact:
Union Jack Oil plc info@unionjackoil.com
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Broker
Matthew Johnson
Richard Hail
Kasia Brzozowska
Shore Capital Stockbrokers Limited +44 (0)20 7408 4090
Joint Broker
Toby Gibbs
Iain Sexton
BlytheRay
Financial PR
Tim Blythe
Megan Ray +44 20 7138 3204
Glossary
1C Low estimate of Contingent Resources
2C Best estimate of Contingent Resources
3C High estimate of Contingent Resources
1P Low estimate of Reserves. Proved Reserves
2P Best estimate of Reserves. The sum of Proved plus Probable Reserves
3P High estimate of reserves. The sum of Proved plus Probable plus Possible
Reserves
1U The unrisked low estimate qualifying as Prospective Resources.
2U The unrisked best estimate qualifying as Prospective Resources.
3U The unrisked high estimate qualifying as Prospective Resources.
bcf billion cubic feet
Contingent Resources Those quantities of petroleum estimated, as of a given date, to be potentially
recoverable
from known accumulations by application of development projects, but which are
not currently
considered to be commercially recoverable owing to one or more contingencies.
Estimate Ultimate Recoverable ("EUR") Those quantities of petroleum estimated, as of a given date, to be potentially
recoverable
plus those quantities that have been already produced. For clarity, EUR must
reference the
associated technical and commercial conditions for the resources; for example,
proved EUR
is Proved Reserves plus prior production.
mbbl thousands of standard oil barrels
mboe thousands of barrels of oil equivalent
Prospective Resources Those quantities of petroleum that are estimated, as of a given date, to be
potentially recoverable
from undiscovered accumulations.
Reserves Reserves are those quantities of petroleum anticipated to be commercially
recoverable by application
of development projects to known accumulations from a given date forward under
defined conditions.
Technically Recoverable Resources Those quantities of petroleum producible using currently available technology
and industry
practices, regardless of commercial or accessibility considerations
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