The resources of a major onshore oil find have been upgraded, with analysts saying it could become the “largest” of its kind in the UK.
Union Jack Oil, a partner in the West Newton discovery in Yorkshire, has upgraded the estimated resources to a “base” case of 146.4million barrels of oil and 211.5 billion cubic feet of gas.
In the upside estimate, it could be as much as 283m barrels of oil and 265.9Bcf of gas.
Analyst firm SP Angel said this classifies the project as having “significant company maker potential” and that it is “one of the UK’s largest ever onshore discoveries”.
West Newton is operated by Rathlin Energy with a 66.67% stake, with partners Union Jack Oil (16.66%) and Humber Oil and Gas (16.66%).
The discovery lies in East Yorkshire in the Kirkham Abbey reservoir, with the re-valuation coming from data from the A-1 discovery well and A-2 appraisal well.
SP Angel said the figures show “Union Jack has the potential to transition from a junior E&P Company into a self-sustaining mid-tier hydrocarbon producer”.
Further appraisal wells are planned for next year.
David Bramhill, executive chairman of Union Jack, said: “The results of the operator’s analysis confirm that the estimated in-place hydrocarbon volumes at West Newton comprise a significant proportion of liquids, which represent a material increase over and above those figures provided by the existing competent persons report.
“We are looking at an onshore project with potential offshore resources, and to date, West Newton is demonstrating the elements required to become a significant conventional hydrocarbon development project in the future.”