Encouraging RNS regarding the results of the pumped test for Union Jack Oil

Union Jack Oil plc an onshore oil and gas exploration company with a focus on drilling, development and investment opportunities in the United Kingdom hydrocarbon sector, has told DirectorsTalk today that Egdon Resources PLC has released an encouraging RNS regarding the results of the pumped test carried out over the Penistone Flags Zone 3A as part of the Extended Well Test (“EWT”) at the Wressle-1 oil and gas discovery in licence PEDL180, located to the east of Scunthorpe. Union Jack holds an 8.33 per cent interest in PEDL180.

Egdon’s RNS contained the following information:

During earlier initial testing, the Wressle-1 well produced oil and gas from three discrete reservoir intervals, the Ashover Grit, the Wingfield Flags, and the Penistone Flags as previously reported. At the end of those test operations, a completion was installed in the well to cater for a subsequent pumped EWT over the oil productive zones in the Ashover Grit (Zone 1) and the Penistone Flags (Zone 3A).

Due to problems experienced with the downhole testing equipment, the pumped flow test of the Ashover Grit oil reservoir could not be undertaken first as originally planned, therefore test operations were switched to focus initially on the shallower Penistone Flags.

The Penistone Flags interval was pumped for a period of time and achieved average rates over a three day period of 131 barrels of oil per day (“bopd”) and 222,000 cubic feet of gas per day, together totalling 168 barrels of oil equivalent per day (“boepd”) with an average producing gas oil ratio (“GOR”) of approximately 1,700 cubic feet of gas per barrel of oil (“scf/stb”).

Due to increasing gas rates the pump was then stopped and the well allowed to naturally flow to surface on a series of decreasing choke sizes from 12/64″ down to 8/64″ (being the smallest available). Average rates over a two day period on the 8/64″ choke were 105 bopd with 465,000 cubic feet of gas per day, together totalling 182 boepd with an average producing GOR of approximately 4,450 scf/stb.

During the course of this flow testing no associated formation water has been produced.

The gas production rate has increased to the point where it is approaching the limits allowed under the environmental permit and as such production from the interval has now been halted. The well is now being killed ready for the next operation to be conducted, an injection test over the Penistone Flags zone 3A interval, to provide further reservoir data.

On conclusion of this injection test, attention will return to resolving the operational issues and undertaking pumped oil production testing over the Ashover Grit interval.

Commenting on the latest flow test result, Mark Abbott, Managing Director of Egdon Resources said: “I am pleased to report the continuing encouraging results from the Wressle-1 test programme. The hydrocarbon production rate of over 180 barrels of oil equivalent per day attained from the Penistone Flags oil zone has exceeded pre-test expectations. The production performance together with the planned injection test will provide valuable reservoir engineering data that will be used to plan for a commercial development of the Penistone Flags.

We now look forward to commencing operations on the EWT programme for the Ashover Grit and will provide another update in due course.”

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