PEDL183 – West Newton

Union Jack holds a 16.665% interest in PEDL183, located within the Western sector of the Southern Zechstein Basin, which is on trend with the prolific Hewett gasfield complex; West Newton was discovered in 2013 by the West Newton – 1 well (“A-1”).

PEDL183 contains the West Newton A-1 well gas discovery, which has been further appraised by West Newton A-2, West Newton B-1 and the recently drilled West Newton B-1Z.

The result of the drilling has been integrated with the seismic studies, which has shown there is good seismic calibration across the West Newton project area, highlighting both the Kirkham Abbey “platform” and “slope” formations.

Following the drilling the A-2 well, petrochemical analysis independent geophysical and geochemical analysis conducted by Applied Petroleum Technology (UK) Limited (“APT”) identified an oil leg in the Kirkham Abbey reservoir, allowing for and upgrade to the volumetric estimates:

Base Case:

• Liquids: 146.4 million barrels of oil initially in-place (“OIIP”)
• Gas: 211.5 bcf of gas initially in-place (“GIIP”)

Upside Case:

• Liquids: 283 mmbbl OIIP
• Gas: 265.9 bcf GIIP

The recent West Newton B-1Z well demonstrated a hydrocarbon column of at least 118 metres with no hydrocarbon-water, and demonstrated a thick, porous section, which was observed in the A-2 and B-1Z wells, suggesting a contiguous structure across the Kirkham Abbey formation.

The B-1Z well has de-risked the southern component of the West Newton licence area and, crucially, supports the accuracy of the seismic interpretation across the entire platform. Logs taken as part of the B-1Z programme show good porosity throughout the interval and that the Kirkham Abbey interval is hydrocarbon saturated. Visual inspection has observed visible natural fracturing, micro fracturing and vuggy porosity, confirmed by corelab inspection and analysis.

B-2 well planned for H2 2021 (planning permission in place), with the well design to be finalised by the results of upcoming testing programme, after which, the volumetric estimates will be updated.

Further exploration and appraisal of the West Newton Field will continue to progress Union Jack’s understanding of West Newton.

The Humber region is the UK’s largest energy hub, contributing £18bn towards the UK economy along with 27% of the UK’s oil refinery capacity. The West Newton prospect borders a thriving cluster of world-scale chemical and energy operations located at Saltend, and elsewhere within the Humber estuary.

The cluster currently relies upon significant oil and natural gas imports from overseas. These foreign imports come at a higher cost to the UK and with an increased carbon footprint.

The Zero Carbon Humber energy and chemicals cluster has been identified by the UK government as a funding recipient to develop the world’s first carbon neutral (net zero) industrial cluster by 2040.

Hydrocarbons are used as raw materials to make a range of products including fertiliser for agriculture, PPE for hospitals, detergents for homes, paints, mouldable plastics, mobile phones, laptops, surfaces for roads as well as used to heat homes and businesses.

PEDL183 – West Newton

Union Jack holds a 16.665% interest in PEDL183, located within the Western sector of the Southern Zechstein Basin, which is on trend with the prolific Hewett gasfield complex; West Newton was discovered in 2013 by the West Newton – 1 well (“A-1”).

PEDL183 contains the West Newton A-1 well gas discovery, which has been further appraised by West Newton A-2, West Newton B-1 and the recently drilled West Newton B-1Z.

The result of the drilling has been integrated with the seismic studies, which has shown there is good seismic calibration across the West Newton project area, highlighting both the Kirkham Abbey “platform” and “slope” formations.

Following the drilling the A-2 well, petrochemical analysis independent geophysical and geochemical analysis conducted by Applied Petroleum Technology (UK) Limited (“APT”) identified an oil leg in the Kirkham Abbey reservoir, allowing for and upgrade to the volumetric estimates:

Base Case:

• Liquids: 146.4 million barrels of oil initially in-place (“OIIP”)
• Gas: 211.5 bcf of gas initially in-place (“GIIP”)

Upside Case:

• Liquids: 283 mmbbl OIIP
• Gas: 265.9 bcf GIIP

The recent West Newton B-1Z well demonstrated a hydrocarbon column of at least 118 metres with no hydrocarbon-water, and demonstrated a thick, porous section, which was observed in the A-2 and B-1Z wells, suggesting a contiguous structure across the Kirkham Abbey formation.

The B-1Z well has de-risked the southern component of the West Newton licence area and, crucially, supports the accuracy of the seismic interpretation across the entire platform. Logs taken as part of the B-1Z programme show good porosity throughout the interval and that the Kirkham Abbey interval is hydrocarbon saturated. Visual inspection has observed visible natural fracturing, micro fracturing and vuggy porosity, confirmed by corelab inspection and analysis.

B-2 well planned for H2 2021 (planning permission in place), with the well design to be finalised by the results of upcoming testing programme, after which, the volumetric estimates will be updated.

Further exploration and appraisal of the West Newton Field will continue to progress Union Jack’s understanding of West Newton.

The Humber region is the UK’s largest energy hub, contributing £18bn towards the UK economy along with 27% of the UK’s oil refinery capacity. The West Newton prospect borders a thriving cluster of world-scale chemical and energy operations located at Saltend, and elsewhere within the Humber estuary.

The cluster currently relies upon significant oil and natural gas imports from overseas. These foreign imports come at a higher cost to the UK and with an increased carbon footprint.

The Zero Carbon Humber energy and chemicals cluster has been identified by the UK government as a funding recipient to develop the world’s first carbon neutral (net zero) industrial cluster by 2040.

Hydrocarbons are used as raw materials to make a range of products including fertiliser for agriculture, PPE for hospitals, detergents for homes, paints, mouldable plastics, mobile phones, laptops, surfaces for roads as well as used to heat homes and businesses.

THE LICENCE LOCATION AND PERCENTAGE INTEREST HOLDINGS ARE AS FOLLOW: