Union Jack Oil expects even higher rates at Wressle as gas plans are unveiled

Union Jack Oil PLC said it expects the Wressle field to further increase production, potentially up to 1,500 barrels of oil per day (bopd), later this year as the field begins to deliver additional domestic UK gas supplies.

The oil field in Lincolnshire is presently constrained by gas flaring regulations – it is allowed to incinerate 10 tonnes of gas per day – but, a new development plan has been submitted to the UK authorities so that gas can be sold instead of burned and oil can flow unrestrained.

At 760 to 800 bopd, Wressle is already outperforming the original production expectations of 304 to 320 bopd net to Union Jack. And a total of 150,000 barrels of crude have been produced since the field restarted in August.

It is planned that Wressle’s gas can be monetised via a short 600 metre pipeline into the local gas distribution network, albeit this will require both planning permission and environmental agency approvals.

The Wressle field partners expect that gas monetisation can be achieved towards the end of 2022, in time for gas sales in the coming winter.

Moreover, it is noted that the same gas monetisation route will be available further into the future when the partners intend to develop Wressle’s Penistone Flags reservoir which is estimated to host 1.53mln barrels of oil and 2bn cubic feet of gas.

"The extended well testing programme at Wressle has been nothing short of a spectacular success and another important milestone has been achieved in the submission of the Wressle field development plan to the regulators,” said David Bramhill, Union Jack executive chairman.

"We have learned much about the behaviour of this well over the past year and the results to date have confirmed that our material 40% interest in this major project is only just beginning to show its true potential.

"I have no doubt that Wressle will be a major producer of onshore hydrocarbons for many years to come.”

Bramhill also highlighted “significant progress” is being made in Yorkshire, at the West Newton project. “Our expectations of success, remain, as always, extremely high,” Bramhill said of West Newton.

He added: “Wressle has effectively transformed the financial position of Union Jack and, coupled with the exceptional opportunities we believe are offered by our other projects, the company is now covered for all operational and contracted or planned CAPEX costs, including drilling, which augers well for the future of the company and its shareholders."

Union Jack owns a 40% interest in Wressle alongside partners Europa Oil & Gas and Egdon Resources which each own 30%.

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