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UK-focused hydrocarbon company Union Jack Oil said that drilling at its West Newton wells in Yorkshire showed the presence of both oil and gas, rather than pure gas as it originally thought.
The company was now awaiting a revised competent person's report (CPR), which was expected to provide details on the oil and gas in place, as well as recoverable volumes.
'Given the positive value implications of a major onshore oil development, rather than predominantly gas as originally believed, we expect this will also lead to a meaningful uplift in the NPV10 calculations in the Revised CPR,' said executive chairman David Bramhill.
'We now believe that West Newton will become a significant oil development project for Union Jack, our joint venture partners and for the onshore UK hydrocarbon industry,' he added.
The company said the extended well test on site would now be paused to allow the test equipment to be reconfigured to design and implement a revised production test which would better reflect the increased liquid hydrocarbon content of the production fluid.
The West Newton A-2 appraisal well is operated by Ratlin Energy. Union Jack holds a 16.665% interest in the licence containing the West Newton A-1 discovery well and the West Newton A-2 appraisal well.
At 8:09am: (LON:UJO) Union Jack Oil Plc share price was +0.04p at 0.32p