UK-focused onshore hydrocarbon company Union Jack Oil has seen positive initial production results from its recent well workover programme designed to increase production at the Fiskerton Airfield Oilfield located approximately seven miles East of the City of Lincoln.
Union Jack, which acquired a 20% economic interest in Fiskerton back in November 2017, said the project represented an opportunity for it to enhance its cash flows and profitability as a result of prior underinvestment, and had put into place plans to increase production, initially via low-cost well interventions, with the installation of new tubing, pumps and the isolation of water producing zones to come.
Initial field production at Fiskerton, prior to further optimisation and operations during the coming months, including an increase to the well's pumping rate, was “approaching 30 barrels of oil per day gross” of good quality oil, something the firm tagged as a “significant increase” on the pre-workover rate of 16 BOPD.
David Bramhill, executive chairman of Union Jack, said, “I am pleased to be able to report that our Fiskerton production acquisition is beginning to generate cash flow following recent workovers with gross production now approaching 30 barrels per day.”
“We expect there to be incremental rises in production at Fiskerton as the partners fine tune and learn more about field production and individual well characteristics. The payback time in respect of our investment represents excellent value given the modest entry price,” added Bramhill.
Elsewhere, Union Jack, which also holds a 15% interest in PEDL 180 and 182 which contain the Wressle oil discovery in Lincolnshire, was informed by the project's operator that it had drilled two deeper cored groundwater boreholes in addition to the investigation boreholes previously drilled, with data from these operations set to be used to support this application, which will contain a revised site design and hydrological risk assessment.
“Wressle remains the 'game changer' for Union Jack and I am sure that the revised application that will address the points raised by the Planning Inspector resulting from the appeal process will empirically demonstrate the integrity of the revised development plan,” concluded Bramhill.
As of 0920 BST, shares had risen 0.94% to 0.086p.