Shares of Union Jack Oil PLC (LON: UJO) edged higher after the oil mining company released an operations update on its West Newton project in the Southern Permian Basin, onshore UK.
The company announced that it had received a draft of the Environmental Agency’s varied permit to accommodate completion, well clean-up, and Extended Well Test (EWT) operations.
The firm will commence the first phase of evaluation in April 2021, including the Cased Hole Logging Programme (CHLP) and vertical seismic profiling of WNB-1Z. Once the company has completed the two processes, it will process and interpret the data acquired for approximately two weeks.
Union jack shares later fell, erasing all of their gains despite positive comments from company CEO David Bramhill regarding its three main projects.
Bramhill comments that “We've seen significant progress at our three key projects WestNewton Wressle & Biscathorpe. Developments at these three material assets have already generated a steady stream of news during 2020, which can be expected to continue throughout the remainder of the year & beyond.”
He added that the onshore West Newton project’s potential is significant due to the oil and gas volumes combined with the lower onshore development costs compared to alternatives, resulting in highly favourable project economics and a worthwhile project from an industry perspective.
Union Jack Oil share price.
Union Jack Oil shares edged higher on the West Newton project update but later fell, erasing all gains.