The big question for quite some time has been ‘will West Newton ever be drilled?’.
There has been an extended period of complete silence since planning was granted, until very recently when David Bramhill, Executive Chair of Union Jack strongly intimated to the ‘renaissance’ of this prospect. (a French word meaning rebirth, it is applied to the rediscovery and revival of interest)
With a recent, failed requisition attempt against Reabold Resources, one of the three parties involved in West Newton and along with Rathlin Energy’s financial problems, it would appear things are at last coming together to commence mobilisation of this venture. There are, in my opinion additional catalysts involved here, one being the strength of the cash position of both Reabold and Union Jack, the other being the looming general election. This and the fear for the UK oil industry of a Labour government getting into power and not only increasing the Energy Levy Tax but putting a stop to any further drilling for oil or gas.
Priority will be getting this project, along with the Penistone Flags started. Once those drills are in the ground, they will continue through to production. Of the assets in the Union Jack portfolio, I would suggest these two are the most important in terms of being near term, less hassle revenue generating projects.
Looking at Biscathorpe, this is unlikely to be an asset that can be realised pre-election. It will likely have the planning consent challenged, be plagued with protestors and reliant on Egdon who no doubt have a number of other projects prioritised, one of course being the Penistone Flags. I fail to see how anyone can prioritise that over West Newton or Wressle.
Keddington, the same issue in terms of Egdon’s calendar of availability.
West Newton is considered one of the biggest gas discoveries in over half a century and lies within an area of easy distribution to market. The Penistone Flags ensures the continued revenue generation to the company and I see these two assets as far more important than the others.
David Bramhill is confident in the future, I would have to agree. 2024 looks to be an exciting year for shareholders. The US assets are a welcome ‘safety net’ against any UK set backs.