REG - Union Jack Oil PLC - PEDL 180 and PEDL 182 Competent Person's Report

Union Jack OilAnnouncement

02/01/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240102:nRSB2728Ya&default-theme=true

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      +44 20 7138 3204

 Financial PR

 Tim Blythe

 Megan Ray

 

 

 

 

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

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDBCGDBSSGDGSB