Union Jack Oil PLC Carbon Intensity Study on West Newton Rated AA (0218Q)

TIDMUJO

RNS Number : 0218Q

Union Jack Oil PLC

16 June 2020

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Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement

16 June 2020

Union Jack Oil plc

("Union Jack" or the "Company")

Carbon Intensity Study on the West Newton Hydrocarbon Project Rated AA by GaffneyCline

Union Jack Oil plc (AIM: UJO), a UK focused onshore hydrocarbon production, development and exploration company, is pleased to publish the positive conclusions of a Carbon Intensity Study on the West Newton hydrocarbon project, located within PEDL183 onshore UK in East Yorkshire, undertaken by GaffneyCline & Associates Limited ("GaffneyCline"), an international petroleum consultancy. Union Jack holds a 16.665% interest in PEDL 183 that includes the West Newton A-1 and A-2 hydrocarbon discoveries.

The Gaffney Cline study highlighted the following:

-- The West Newton project has an AA rating for Carbon Intensity for its potential Upstream crude oil production

-- Carbon Intensities at West Newton are significantly lower than the UK average and compared to other onshore analogues

-- Based on the study, GaffneyCline estimate that West Newton could produce the equivalent of just 5 grams of CO(2) per megajoule of energy created (gCO(2) eq./MJ)

-- The study also highlighted that this number could be further reduced to just 3.5 gCO(2) eq./MJ by applying gas-to-grid technologies

-- As the development proceeds and project knowledge increases, there is potential to improve the Carbon Intensity by further reducing fugitive, flaring and venting emissions through the use of best available technologies

Union Jack`s focus is to minimise emissions and the carbon footprint generated by its hydrocarbon developments in the most efficient way possible, whilst continuing to contribute positively to the growing demand for energy and hydrocarbon products in the supply chain.

The demand for energy is increasing and, as the global economy recovers, hydrocarbons will continue to play an ongoing part in ensuring the energy security of the UK. Union Jack`s development projects are located close to areas with a high demand for energy. As a consequence, the Company believes that locally produced hydrocarbons may provide the benefit of displacing, to some extent, imported hydrocarbons.

The Carbon Intensity study on the West Newton hydrocarbon project was calculated by GaffneyCline, using the Oil Production Greenhouse Gas Emissions Estimator developed at Stanford University and an assessment of the Global carbon intensity of crude oil production which GaffneyCline contributed to. Study parameters were selected from GaffneyCline`s Global field database as well as specific West Newton factors, including a notional development plan and recovery mechanism. The result of this study was benchmarked against other field analogues using the Global field database. In addition, the outcomes of the study were analysed and insights provided on the major contributing factors to the overall carbon intensity of West Newton.

Carbon Intensity Rating for West Newton Development Concept

 
  Carbon Intensity Rating 
   Carbon Intensity = gCO(2) eq./MJ 
                            Current         Potential 
          --------------  --------------  ----------- 
  AA        GBP 5           5               3.5 
          --------------  --------------  ----------- 
  A         5 - 7 
          --------------  --------------  ----------- 
  B         7 - 11 
          --------------  --------------  ----------- 
  C         11 - 20 
          --------------  --------------  ----------- 
  D         20 - 30 
          --------------  --------------  ----------- 
  E         30 - 50 
          --------------  --------------  ----------- 
  F         50 - 70 
          --------------  --------------  ----------- 
  G         Over 70 
          --------------  --------------  ----------- 
 

Source: GaffneyCline

Analysis of the results of this GaffneyCline study concludes that the West Newton hydrocarbon project has carbon intensities significantly lower than the UK average and compared to other onshore analogues. As recommended by the study the development of West Newton will seek to further reduce the project`s Carbon Intensity through the utilisation of the best available techniques, including Gas-to-Grid technologies and stringent engineering specifications to minimise any venting, flaring or fugitive emissions.

David Bramhill, Executive Chairman of Union Jack commented: "This study is an excellent overview of the green credentials for any future development decision at West Newton. The AA rating achieved indicates the efforts made by the Operator, Rathlin Energy (UK) Limited, to ensure that projects under its stewardship comply with best practice. Union Jack and Reabold Resources Plc support Rathlin`s strategy to negate the effects and threat of climate change. Union Jack`s growth strategy is aligned with our Carbon Management Practice for all of our development projects in the future in order to achieve significantly lower carbon intensities than the industry average.

"The Board of Union Jack believes that in these environmentally aware times, investors will only wish to commit to investments in companies and projects that support a transition to a low-carbon economy. As part of our ongoing strategy in respect of the environment going forward, we commit to be totally transparent in respect of our projects and on how our Carbon Management Practice is implemented."

GaffneyCline

GaffneyCline is an international petroleum consultancy, which has been operating worldwide since 1962. GaffneyCline focuses solely on the petroleum and energy industry, and specializes in the provision of policy, strategy, technical and commercial assistance to governments, financial institutions, and national and international oil, gas and energy companies worldwide. The provision of Carbon Management Practice and Carbon Intensity Assessment have recently been added as a core component of GaffneyCline's international business

For further information, please contact:

   Union Jack Oil plc                                                          [phone] 

David Bramhill

   SP Angel Corporate Finance LLP                                 [phone] 

Nominated Adviser and Broker

Richard Morrison

Richard Hail

Caroline Rowe

   Cassiopeia Services Ltd                                                  [phone] 

Public Relations

Stefania Barbaglio

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June 16, 2020 02:00 ET (06:00 GMT)