REG - Union Jack Oil PLC - AA Rated Carbon Intensity Study on West Newton

Union Jack OilAnnouncement

24/05/2024 07:00

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RNS Number : 7311P  Union Jack Oil PLC  24 May 2024

24 May 2024

 

Union Jack Oil plc

("Union Jack" or the "Company")

AA Rated Carbon Intensity Study on the West Newton Gas Development Project

 

Union Jack Oil plc (AIM:UJO) (OTCQB:UJOGF), a UK and USA focused onshore
hydrocarbon production, development, exploration and investment company, is
pleased to publish the positive conclusions of a Carbon Intensity Study (the
"Report") on the West Newton gas development, located within PEDL 183 onshore
UK in East Yorkshire. This study was undertaken on behalf of Union Jack and
Reabold Resources plc ("Reabold"), by GaffneyCline & Associates Limited
("GaffneyCline"), an international petroleum and energy consultancy.

Union Jack holds a 16.665% interest in PEDL 183 that includes the West Newton
hydrocarbon discoveries. The Report can be found on the Company's website,
unionjackoil.com.

The GaffneyCline Report highlighted the following:

·   The West Newton project has an AA rating for Carbon Intensity for its
potential upstream gas and condensate production;

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

·    Based on the study, GaffneyCline estimates that West Newton could
produce the equivalent of just 2.87 grams of CO(2) per megajoule of energy
developed (gCO(2)eq./MJ);

·    As the development proceeds and project knowledge increases, there is
potential to further improve the Carbon Intensity by further reducing fugitive
flaring and venting emissions and by gas-to-grid development.

 

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 on the West Newton gas development project was calculated
by GaffneyCline, using a tool called the Oil Production Greenhouse Gas
Emissions Estimator ("OPGEE"), developed at Stanford University with support
from GaffneyCline.  This tool is used, amongst other applications, by the
California Air Resources Board for regulation of transport fuel related Green
House Gas ("GHG") emissions. The OPGEE tool selects parameters from a range of
'smart' defaults, however, these are not always optimal for specific fields.

GaffneyCline was then able to harness appropriate parameters available from
their proprietary Global database of Carbon Intensity evaluations for over
9,000 gas and oil fields, categorised with metadata for analogue field
identification, and a classification system for recovery mechanism.

 

      Carbon Intensity Rating for West Newton Gas Development Concept

 Carbon Intensity Rating

 Carbon Intensity = gCO(2)eq./MJ
                           Current      Potential
 AA           £ 5          2.87         2.66
 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 a West
Newton gas development will have carbon intensities significantly lower than
the UK average and compared to other onshore analogues. As recommended by the
study, the gas and condensate 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 gas development
decision at West Newton.  The AA rating achieved indicates the efforts made
by the Operator, Rathlin Energy (UK) Limited ("Rathlin"), to ensure that
projects under its stewardship comply with best practice.  Union Jack and
Reabold 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 consultancy, which has been operating
worldwide since 1962.  GaffneyCline focuses solely on the petroleum and
energy industries, and specialises in the provision of policy, strategy,
technical and commercial assistance, to governments, financial institutions,
and national and international oil, gas and energy companies worldwide.  A
Carbon Management Practice that provides Carbon Intensity Assessments is a
core component of GaffneyCline's international business.

 

For further information, please contact:

 Union Jack Oil plc                   info@unionjackoil.com (mailto:info@unionjackoil.com)

 David Bramhill

 SP Angel Corporate Finance LLP       +44 (0)20 3470 0470

 Nominated Adviser and Joint Broker

 Matthew Johnson

 Kasia Brzozowska

 Richard Hail

 Shore Capital                        +44 (0)20 7408 4090

 Joint Broker

 Toby Gibbs

 Harry Davies-Ball

 Gneiss Energy Limited                +44 (0)20 9263 3983

 Financial Adviser

 Jon Fitzpatrick

 Paul Weidman

 Harbour Access                       +1 (475) 477 9402

 USA Investor Relations

 Jonathan Paterson

 Tommy Zima

 BlytheRay                            +44 (0)20 7138 3204

 Financial PR

 Tim Blythe

 Megan Ray

 

 

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