Wressle

PEDL180 and PEDL182 – Wressle Discovery
PEDL182 – Broughton North

Union Jack holds an 15% interest in PEDL180 and PEDL182 located in Lincolnshire, on the Western margin of the Humber Basin and is on trend with the producing Crosby Warren oil field and the Brigg-1 oil discovery, situated to the immediate northwest and southeast of the licence respectively.

In July 2014 the Wressle-1 conventional exploration well was spudded. The Wressle-1 Prospect was defined on proprietary 3D seismic data acquired by Egdon in 2012, and the well was drilled as a deviated well to a total depth (TD) of 2,240 metres and was designed to intersect a number of prospective Upper Carboniferous age sandstone reservoirs in a structurally favourable position near the crest of the Wressle structure. Pre-drill gross mean Prospective Resources at Wressle as calculated by Egdon were estimated
to be 2.1 million barrels of oil.

On 23 August 2014 TD was reached and elevated mud gas readings were observed over large parts of the interval from the top of the Penistone Flags reservoir target (1,831.5 metres MD – measured depth) to TD.

The well was logged using measurement whilst drilling (MWD) logging tools run on the drill string. Petrophysical evaluation of the log data indicated the presence of hydrocarbon pay in three intervals.

Penistone Flags – up to 19.8 metres measured thickness (15.9 metres vertical thickness)

Wingfield Flags – up to 5.64 metres measured thickness (5.1 metres vertical thickness)

Ashover Grit – up to 6.1 metres measured thickness (5.8 metres vertical thickness)

Subsequent to the year end, in February 2015 shareholders were updated on the initial successful Ashover Grit Flow Test which recorded 80 barrels of oil per day (bopd) and 47 thousand cubic feet of gas per day during a 16 hour main flow period.
No appreciable volumes of water were observed. The oil is of good quality with a gravity of 39-40º API.

Following the Ashover Grit test shareholders were updated on the initial successful Wingfield Flags Flow Test which recorded up to 182 barrels of oil per day (bopd) of good quality oil with a gravity of 39-40º API along with up to 456 thousand cubic feet of gas per day.

The next horizon to be flow tested was the Penistone Flags, the last of three hydrocarbon bearing zones identified in the well. The Penistone test produced gas at restricted flow rates of up to 1.7 million cubic feet of gas per day (mmcfd) with associated oil of up to 12 barrels of oil per day (bopd) and no free water from a 9 metre perforated zone at the top of the formation. Gas flow rates were constrained by the equipment and flaring limits imposed by the environmental permit. The gas and oil are of good quality with the oil having a gravity of 35º API.

The downhole pressure data recorded during the testing will now be analysed to estimate the gas flow rates that could be achieved under production, unconstrained by the flare and permit restrictions.

A further test was carried out to evaluate the gas-oil and oil-water contacts in the Penistone Flags by perforating the formation deeper in the section. Zone 3a was perforated over a 7.5 metre interval and produced good quality oil with a gravity of 33º API. A total of 98.5 barrels of oil were recovered during the test (of which flow induced by swabbing produced 34.3 barrels of oil). This equates to approximately
77 barrels of oil per day (bopd).

To summarise, the Wressle-1 well has flowed oil and gas from three separate reservoirs, the Ashover Grit, the Wingfield Flags and the Penistone Flags. The flow test from Zone 3a has confirmed the presence of an oil column below the gas leg in Zone 3 of the Penistone Flags.

The downhole pressure and oil sample data from all tests will now be interpreted and integrated into an updated field model to inform future development planning.

The Broughton North Prospect is located within PEDL182 and has been generated primarily from a high quality 3D seismic data set acquired during 2012.  This exercise provided detailed structural data and enabled a bottom-hole target location to be identified for the Brooughton North Prospect.

Union Jack’s share of funding of the Broughton North well will be paid for by hydrocarbon sales from the Wressle-1 commercial production expected to commence in late 2017.

The Wressle-1 discovery has significantly reduced the geological risk over PEDL180 and PEDL182 and additionally this transaction will benefit the Company going forward in any “add on” development decisions which may follow once Wressle-1 is in commercial production.

 

The percentage interest holdings in PEDL180 and PEDL182  are:

Holders

Holding (%)

Egdon Resources (Operator)

25.00

Celtique Energie

30.00

Europa Oil & Gas Limited

30.00

Union Jack Oil

15.00

 

100.0

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