Union Jack Oil provides West Newton planning update

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AIM side Union Jack oila British company specializing in the production, development and exploration of onshore hydrocarbons, notes West Newton and PEDL183 Community Update presented to the West Newton Community Liason Group by Rathlin Energy (UK) on September 23, 2022, the full wording of which is set out below.

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Union Jack Oil provides West Newton planning update

‘Engineering Update

Over the past several months, data collected during the drilling of the West Newton wells, which includes oil and gas core and samples, wireline logs and well test data, has been analyzed by third-party laboratories , CoreLab and Applied Petroleum Technology (UK) Ltd (“APT”) and an engineering company RPS Group Limited (“RPS”). The results of these analyses, in conjunction with the internal assessments, have been very helpful in informing Rathlin’s future work program.

Laboratory analyzes have determined that the formation is very sensitive to aqueous fluids and that previous drilling of the West Newton wells with water-based mud created damage near the wellbore in the Abbey Reservoir. Kirkham, by creating very fine rock fragments during drilling which could potentially clog the natural porosity and permeability of the reservoir and impair its flow capacity. Further analysis has determined that the use of dilute water-based acids during well testing will also have adversely affected the flow characteristics of the Kirkham Abbey reservoir.

These same tests demonstrate that by drilling the Kirkham Abbey reservoir with petroleum-based drilling fluid, damage to the oil and gas reservoir can be minimized.

To that end, Rathlin has filed applications with the Environment Agency for the use of petroleum-based drilling fluids in the oil and gas section of the Permian, for the West Newton A and B sites. oil-based drilling are included in the standard rules permit, which was applied for at the West Newton B site, while the current variation of the West Newton A site permit has been adapted to include oil-based muds in the same way as in the Standard rules allow. The determination of these permits is pending.

ATP analyzes of numerous oil and gas samples recovered from West Newton wells during testing to date, as well as evaluation of mud gases measured during drilling, using proprietary software package, indicate that the Kirkham Abbey reservoir consists mainly of gas (mainly 90% methane + 5% ethane) with associated fuel oil (condensate).

The significance of this finding is that the need for trucking during production can be significantly reduced.

Following the laboratory analyses, Rathlin engaged the RPS engineering consultants to undertake a detailed study of the reservoir and completion program, based on the results from CoreLab and ATP. RPS has determined that by drilling with a petroleum-based mud system and extending the length of the reservoir section penetrated by a well, the production capacity of each well will be improved.

RPS has modeled shafts extending up to 1500 meters horizontally through the Kirkham Abbey reservoir. The modeled horizontal wells will also have a much greater likelihood of encountering significant sections of the reservoir with open natural fractures, which will also improve the productive capacity of the Kirkham Abbey reservoir.

Work program

Technical teams from Rathlin and our partners are currently working to determine the optimal orientation for a horizontal well, which can be drilled from site A or site B.

Given the challenges of the global supply chain, long-lead items, such as steel casing for a horizontal well, have already been ordered. The availability of rigs capable of drilling a 1,500 meter horizontal well is also being determined.

Field development

The importance of laboratory and engineering results has significant advantages in terms of the development of the West Newton field.

From the perspective of local residents, a development with more gas and less oil will significantly reduce the volume of traffic associated with production and allow for the installation of a pipeline to deliver natural gas directly to the national grid.

Locally produced natural gas is, and will remain, an indispensable part of the energy mix as the UK seeks to reduce its dependence on foreign gas, whether delivered by pipeline or as liquefied natural gas (“LNG”) in ocean-going tankers. .

The North Sea Transition Authority says domestic gas production in the UK is less than half the emissions intensity of imported LNG. This is particularly important as the UK seeks to meet its Net Zero 2050 targets.

Commercial production at West Newton could begin as early as 2026, provided regulatory approvals are expedited and supply chain delays are managed.

The planned recoverable gas resource at West Newton will have the potential to supply the daily gas needs of over 380,000 UK homes for many years to come. Based on OFGEM data showing that the average 3 bedroom house in the UK consumes 7.9kWh/day of electricity and 32.9kWh/day of natural gas.’

Union Jack Executive Chairman David Bramhill said:

“The content of West Newton and Additional Prospects PEDL183 Onshore UK Competent Person’s Report (“CPR”) being compiled by RPS is expected to be released during the week commencing September 26, 2022.”

Background

Union Jack has a 16.665% interest in PEDL183 operated by Rathlin Energy, located in the western sector of the South Zechstein Basin, which is trending with the prolific Hewett gas complex; West Newton was discovered in 2013 by the West Newton – 1 (“A-1”) well.

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

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Source: Union Jack Oil

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