Union Jack Oil PLC PEDL 180 and PEDL 182 Competent Person's Report (2728Y)

TIDMUJO

RNS Number : 2728Y

Union Jack Oil PLC

02 January 2024

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.

2 January 2024

Union Jack Oil plc

("Union Jack" or the "Company")

PEDL 180 and PEDL 182 Competent Person's Report by ERCE

Upgraded Reserves for the Ashover Grit and Wingfield Flags Formations

Penistone Flags Contingent Resources Upgrade and Reclassification to Reserves

Union Jack Oil plc (AIM:UJO), an onshore hydrocarbon production, development and exploration company, principally focused in the UK, is pleased to provide its summary of the Competent Person's Report ("CPR" or the "Report") for the Wressle field ("Wressle") and Broughton North Prospect, dated 31 December 2023, prepared by ERC Equipoise Ltd ("ERCE" or "Competent Person").

The Executive Summary from ERCE's Report has been published on the Company's website www.unionjackoil.com.

Union Jack holds a 40% economic interest in PEDL180 and PEDL182.

HIGHLIGHTS

   --    263% increase in 2P Reserves compared to 2016 CPR 
   --    Reclassification of 1,883 mboe in Penistone Flags Contingent Resources to 2P Reserves 
   --    59% upgrade to the Ashover Grit and Wingfield Flags Estimated Ultimate Recoverable ("EUR") 
   --    23% upgrade to Broughton North Prospective 2U Resources 

David Bramhill, Executive Chairman of Union Jack commented: "Based on the information contained within the Wressle CPR, a 263% increase in 2P Reserves is indicated.

"Today's announcement marks the successful conclusion of the detailed technical programme that has been undertaken on Wressle and the wider PEDL180 and PEDL182 licence areas. This comprehensive programme has involved the reinterpretation of the reprocessed 3D seismic, integration of the results of the well testing programme and production data developed in the period to July 2023.

"The additional data and enhanced understanding have led to the material upgrades in the Reserves of the Ashover Grit, Wingfield Flags and Penistone Flags, and the increase in Broughton North's Prospective Resources.

"The increase in Wressle's Reserves vindicates the focus by the JV partners management of the field's production to maximise recoverable volumes. This provides further support to the development approach we have undertaken to date.

"The installation of artificial lift on the Wressle-1 well marked the start of the next phase of Wressle's development, which will also focus on the export of gas production to the UK National Transmission System, recently approved by the JV.

"Following the identification of the material increase in Reserves and Resources, we look forward to 2024 with enthusiasm, where we expect to be able to continue to crystallise the potential additional value of Wressle for the benefit of UJO's shareholders."

Competent Person's Report

ERCE has made an independent estimate of the hydrocarbon Reserves and Resources (Contingent and Prospective) associated with Wressle and the Broughton North Prospect, located in onshore licences PEDL180 and PEDL182 on the western margin of the Humber Basin in Lincolnshire.

The CPR was prepared on behalf of the Operator, Egdon Resources U.K. Limited, Union Jack and Europa Oil & Gas Limited.

In the preparation of the Report, ERCE has adopted the June 2018 SPE/WPC/AAPG/ SPEE/SEG/SPWLA/EAGE Petroleum Resources Management System ("PRMS") as the standard for classification and reporting. A glossary of all technical terms used is included in the Report.

ERCE has produced the CPR as at 30 June 2023 (the "Effective Date"). The Report was based on information provided by the Operator up to 24 July 2023, which has included updated seismic interpretations and production data.

Estimates of recovery factors were prepared, based on consideration of the results of production performance analysis, reservoir simulation models, classical reservoir engineering calculations and the performances of analogue fields. ERCE has derived independent estimates of Reserves and prepared forecasts of production of oil and gas.

Production profiles have been generated by ERCE for both Reserves and Contingent Resources. The forecasts generated for Reserves have then been used as input to an economic model to undertake an Economic Limit Test ("ELT") and assess commerciality. The economic model has been provided to ERCE by the Operator and has been reviewed by ERCE to confirm the fiscal regime is correctly represented.

Wressle Gross Oil and Gas Reserves (mboe)

 
 Category                  Gross Reserves 
--------------------- 
                           1P      2P      3P 
---------------------  ------  ------  ------ 
 2016 CPR                 303     655   1,356 
---------------------  ------  ------  ------ 
 Added                      -       -       - 
 Produced to 30 June 
  2023                  (519)   (519)   (519) 
 Revisions                258     354     403 
 Reclassified             864   1,883   3,649 
---------------------  ------  ------  ------ 
 2023 CPR                 906   2,373   4,888 
 
 Reserves Change         199%    263%    261% 
 
 

Source: Union Jack

   Note:      1 barrel of oil equivalent ("boe") is equal to 5,714scf of natural gas 

Wressle Gross Oil and Gas Reserves: Ashover Grit and Wingfield Flags (mboe)

 
 Category             Gross Reserves 
---------------- 
                      1P      2P      3P 
----------------  ------  ------  ------ 
 2016 CPR            303     655   1,356 
----------------  ------  ------  ------ 
 Added                 -       -       - 
 Produced to 30 
  June 2023        (504)   (504)   (504) 
 Revisions           244     340     388 
 Reclassified          -       -       - 
 2023 CPR             42     490   1,240 
----------------  ------  ------  ------ 
 
 

Source: Union Jack

   Note:      1 barrel of oil equivalent ("boe") is equal to 5,714scf of natural gas 

Wressle Gross Oil and Gas Contingent Resources and Reserves: Penistone Flags (mboe)

 
 Category          Gross Contingent Resources       Gross Reserves 
-------------- 
                      1C          2C         3C    1P      2P      3P 
--------------  --------  ----------  ---------  ----  ------  ------ 
 2016 CPR            831       1,880      3,385     -       -       - 
--------------  --------  ----------  ---------  ----  ------  ------ 
 Added                 -           -          -     -       -       - 
 Revisions            33           3        264     -       -       - 
 Reclassified      (864)     (1,883)    (3,649)   864   1,883   3,649 
 2023 CPR              -           -          -   864   1,883   3,649 
--------------  --------  ----------  ---------  ----  ------  ------ 
 
 

Source: Union Jack

   Note:      1 barrel of oil equivalent ("boe") is equal to 5,714scf of natural gas 

Broughton North Oil and Gas Prospective Resources

The Broughton North prospect lies within Licence PEDL180 and is located immediately northwest of the Wressle field, across a northeast-southwest trending fault. The majority of the prospect is covered by the same 3D seismic survey that covers the Wressle field.

Broughton North Gross Oil and Gas Prospective Resources (mboe)

 
 Category            Gross Unrisked Prospective Resources 
---------------- 
                           1U           2U               3U 
----------------  -----------  -----------  --------------- 
 2016 CPR                 180          494            1,156 
----------------  -----------  -----------  --------------- 
 Added                      -            -                - 
 Produced to 30 
  June 2023                 -            -                - 
 Revisions                 34          115              376 
 Reclassified               -            -                - 
 2023 CPR                 213          608            1,532 
----------------  -----------  -----------  --------------- 
 
 

Source: Union Jack

   Note:      1 barrel of oil equivalent ("boe") is equal to 5,714scf of natural gas 

Competent Person's Statement

In accordance with the "AIM Rules - Note for Mining and Oil and Gas Companies," the information contained within this announcement has been reviewed and signed off by Graham Bull, Non-Executive Director, who has over 47 years of international oil and gas industry experience.

For further information, please contact:

   Union Jack Oil plc                                                     [e-mail] 

David Bramhill

   SP Angel Corporate Finance LLP                         [phone] 

Nominated Adviser and Broker

Matthew Johnson

Richard Hail

Kasia Brzozowska

   Shore Capital Stockbrokers Limited                 [phone] 

Joint Broker

Toby Gibbs

Iain Sexton

 
 BlytheRay 
  Financial PR 
  Tim Blythe 
  Megan Ray       [phone] 
 

Glossary

 
1C                                     Low estimate of Contingent Resources 
 
2C                                     Best estimate of Contingent Resources 
 
3C                                     High estimate of Contingent Resources 
 
1P                                     Low estimate of Reserves. Proved Reserves 
 
2P                                     Best estimate of Reserves. The sum of Proved plus Probable Reserves 
 
3P                                     High estimate of reserves. The sum of Proved plus Probable plus Possible 
                                       Reserves 
 
1U                                     The unrisked low estimate qualifying as Prospective Resources. 
 
2U                                     The unrisked best estimate qualifying as Prospective Resources. 
 
3U                                     The unrisked high estimate qualifying as Prospective Resources. 
 
bcf                                    billion cubic feet 
 

Contingent Resources                   Those quantities of petroleum estimated, as of a given date, to be potentially 
                                       recoverable 
                                       from known accumulations by application of development projects, but which are 
                                       not currently 
                                       considered to be commercially recoverable owing to one or more contingencies. 
 
Estimate Ultimate Recoverable ("EUR")  Those quantities of petroleum estimated, as of a given date, to be potentially 
                                       recoverable 
                                       plus those quantities that have been already produced. For clarity, EUR must 
                                       reference the 
                                       associated technical and commercial conditions for the resources; for example, 
                                       proved EUR 
                                       is Proved Reserves plus prior production. 
 
mbbl                                   thousands of standard oil barrels 
 
mboe                                   thousands of barrels of oil equivalent 
 
Prospective Resources                  Those quantities of petroleum that are estimated, as of a given date, to be 
                                       potentially recoverable 
                                       from undiscovered accumulations. 
 
Reserves                               Reserves are those quantities of petroleum anticipated to be commercially 
                                       recoverable by application 
                                       of development projects to known accumulations from a given date forward under 
                                       defined conditions. 
 
Technically Recoverable Resources      Those quantities of petroleum producible using currently available technology 
                                       and industry 
                                       practices, regardless of commercial or accessibility considerations 
 

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January 02, 2024 02:00 ET (07:00 GMT)