Union Jack Oil plc (LON:UJO) last week announced that the East Riding Planning Committee has approved the planning application for drilling and production at the West Newton A site and have separately approved a time extension to allow further exploratory drilling at the West Newton B site.
DirectorsTalk caught up with Arden Partners Research Director Daniel Slater for his thoughts on the news.
Daniel, Union Jack has announced the approval of its recent West Newton (Union Jack 16.7%) planning applications. What does this mean for the company?
This is helpful news, allowing the West Newton JV to proceed with confirming any new work programme for the asset. We would expect this could include new flow testing work, and potentially new drilling, on the asset, aimed at establishing evidence of commercial flow.
What news do you hope to see next from the company?
We expect to see an update on Wressle flow rates post completion of the ongoing upgrade works, helping give us a better idea of the cash generation potential from this asset. We may also see a Wressle reserves update, alongside details of any further West Newton work programme. The company remains well funded from its cash holding and ongoing production cash flows.
Union Jack Oil is an onshore oil and gas exploration company with a focus on drilling, development and investment opportunities in the United Kingdom hydrocarbon sector listed on the London Stock Exchange AIM market.
