Business
West Newton PEDL183 Conceptual Development Plan
West Newton PEDL183 Conceptual Development Plan.
About this update from Union Jack Oil Plc
[{"type":"text","content":"\n \n \n 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.\n \n \n \n \n \n 21 June 2022\n \n \n \n \n \n Union Jack Oil plc\n \n \n \n \n \n \n \n (\"Union Jack\" or the \"Company\")\n \n \n \n \n \n \n \n \n West Newton PEDL183 Conceptual Development Plan\n \n \n \n \n \n \n \n \n \n \n \n \n \n Union Jack Oil plc (AIM: UJO), a UK focused conventional onshore hydrocarbon production, development and exploration company, is pleased to announce details of a conceptual development plan for West Newton, in which the Company has a 16.665% interest\n .\n \n \n \n \n \n \n \n \n Highlights:\n \n \n \n ·\n The Joint Venture partners are progressing with a conceptual development plan for West Newton as, predominantly, a gas development project, following completion of the significant work carried out both internally and scoping exercises and modelling by independent third-party experts (\"Conceptual Development Plan\")\n \n \n \n \n \n ·\n Encouraging post Extended Well Test (\"EWT\") technical and financial analysis:\n \n \n o \n Indicates the potential for good well productivity from proposed new horizontal wells, and\n \n \n o \n Underpins the strong economic returns of the project\n \n \n \n \n \n ·\n Conceptual Development Plan envisages a phased eight well gas development, which will target recoverable hydrocarbon volumes of 35 million barrels of oil equivalent with a sales gas component of 203 billion cubic feet (\"Bcf\") and involves:\n \n \n o \n An initial five well development drilling campaign, with first gas anticipated as soon as 2025, modelling plateau production rates of 44 million cubic feet per day of sales gas\n \n \n o \n A further three wells drilled in 2028-2030, to maintain plateau production of sales gas\n \n \n o \n Economic modelling by the Operator calculated a gross pre-tax NPV(10%) of US$448 million and a pre-tax IRR of 87%, based on recoverable sales gas and small volumes of associated liquids, for the development*\n \n \n o \n Potential also exists for future gas discov...