Union Jack Oil begins installation of jet pump at Wressle

Union Jack Oil (UJO) Follow | UJO, a UK-focused onshore hydrocarbon explorer, said it has begun installing a downhole jet pump and associated surface facilities at the Wressle-1 well, part of its flagship Wressle project located within licenses PEDL180 and PEDL182 in North Lincolnshire. Union Jack holds a 40% interest in Wressle.

The oil producer said operations to install the jet pump had begun with a slickline programme, which is now completed, where downhole pressure and temperature gradients were taken. The work programme will involve recompleting the well for the installation of the new equipment.

Operations are scheduled to take approximately 3 weeks with production from Wressle-1 expected to be reinstated in late September 2023. Data from the recompletion will be incorporated into a Competent Person's Report being prepared by ERC Equipoise on the expected positive impact on production from the jet pump.

While operations at Wressle-1 will have to pause for 3 weeks while the site undergoes works, the installation of a jet pump will have a long-term positive impact on production and revenues from the well. Over 90% of wells today employ artificial lift during their lifecycle, therefore it is an expected development that will ensure continued smooth operation and optimisation of future performance.

Union Jack continues to be highly cash generative, covering all G&A, operational and contracted or planned capex costs, including drilling activities and work programme commitments for at least the next 12 months. The company remains debt free, with cash and investments at over £10.8m as of 2 August 2023.

Wressle-1 has delivered stable oil production with steadily climbing revenues since August 2021, recently passing US$17m. Cashflow has been further complemented by Union Jack's 55%-owned Keddington oilfield where planning is underway for a side-track well. Additionally, Union Jack's buy-back programme has so far acquired 4.6% of shares in issue, improving EPS accordingly.

In November 2022, Union Jack announced a gas monetisation programme at Wressle that will unlock gas revenues and enable Wressle's oil production limit to be lifted. As it stands, the Wressle-1 well peaks at 1000 bopd, with gas monetisation expected to have a materially positive impact on H2 2023 production.

The installation of a downhole jet pump should further boost production, solidifying Wressle's status as one of the most productive UK onshore oilfields, now generating in excess of US$1m a month for UJO.

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