UK Energy Security: London-listed Union Jack Oil (UJO) increases interest in Wressle ahead of…

UK Energy Security: London-listed Union Jack Oil (UJO) increases interest in Wressle ahead of production

London-listed Union Jack Oil (LON:UJO) announced this morning an increased economic interest in licences PEDL180 and PEDL182 of the Wressle hydrocarbon development project in Lincolnshire, bringing the company’s interest in the development to 40%. UJO is a main partner in the project, alongside operator Egdon Resources (LON:EDR), which owns a 30 percent interest, and Europa Oil & Gas (LON:EOG) with another 30 percent.

The joint venture has an estimated 500 bopd of gross initial production, of which 200bopd are net to UJO. The project has been considered financially robust, generating significant cash flow​ for UJO, as break-even full-cycle economics is estimated at an oil price of US$17.62 per barrel​. First oil is expected during H2 2020.

Operations at Wressle
Operations at Wressle

The licence for Wressle operations was granted based on the benefits it will bring to the local community. In his decision, government planning inspector Phillip Ware said to the BBC: “The proposal would deliver economic benefits and reduce the need for imported fuel. I give great weight to these and other benefits. In particular, the proposal would make a significant contribution towards the provision of secure energy supplies and be consistent with the use of a mix of energy sources during the transition to a low-carbon economy.”

Oil and gas provides more than 75 percent of the UK’s total primary energy, according to data from Oil and Gas UK, further noting that as oil and gas will still provide two-thirds of total primary by 2035, it therefore needs to be seen as a vital component of an energy policy.

In 2019, the UK recorded a 10% increase in electricity imports to meet its energy demand last year, said a report from energy market analysis firm EnAppSys. The energy industries’ contribution to the UK economy in 2018 were 3.2% of GDP, nearly 10% of total investment and 32.6% of industrial investment. Of the energy total in 2018, oil and gas extraction accounted for 34%, up 4.2 percentage points on the previous year​.

The oil market has slowly gathered momentum in May. Oil prices have rebounded in the recent weeks, recovering from the lows of April amid optimism about economic activity pick-up after easing of lockdown measures and OPEC+ reaching supply cut agreements.

Data from Bloomberg (07/06/2020)

Listen here interview with Union Jack Oil Business Development, Zac Phillips

About Wressle Development project and UJO

Located in Lincolnshire, Wressle is one of Union Jack’s three flagship assets, along with West Newton and Biscathorpe, which are part of the company’s strategy to focus on major projects to deliver growth in reserves, production and asset value.

The oil produced at Wressle would also help offset international oil imports typically shipped over long distances, as the oil produced would be refined nearby in Immingham, keeping trucking and transportation to a minimum, reducing the carbon footprint and greenhouse gas emissions.

Beyond providing benefits on energy supply, Wressle development will bring economic benefits to the region, with a boost in employment and opportunities for the community. Wressle plays a part in the Economic Growth Plan for North Lincolnshire, which champions the growth of the Humber chemical and energy cluster that currently contributes around £6 billion to the UK economy.

Local industries include petrochemicals, commodity and speciality chemicals, composite materials, pigments and paints, wind turbines and pharmaceuticals, and a raft of other associated industries employing circa 15,000 people in at least 120 companies. Petroleum remains fundamental to these locally significant industries, including in the manufacture of items such as wind turbines for the renewable energy sector which rely upon composite materials involving petroleum products, as do many industrial applications.

Union Jack’s other assets have also been generating positive news. West Newton in East Yorkshire covers 176,000 acres and could represent the largest UK onshore oilfield discovery in decades, after revealing a significant liquid and gas development opportunity with two hydrocarbon discoveries. Following approval from the Environmental Agency, well testing has commenced at West Newton A-2 and work is already in progress at West Newton B-1 drill site.

Biscarthorpe has a break-even full cycle estimated at US$18.07 per barrel of oil, and the company management believes that Biscathorpe remains one of the largest conventional un-appraised onshore hydrocarbon prospects in the UK.

Be sure to follow us on social media @cassiopeia_ltd to keep up with more news and updates in this exciting sector, and don’t forget to subscribe to our podcast channel and YouTube video channel for further upcoming interviews.

The Medicinal Cannabis opportunity

As the benefits of medicinal cannabis becomes more evident and more countries are legalising its use for medical purposes, the cannabis market gains more prominence. Cannabis can be alleviate symptoms and aid treatment of many conditions. At least 30 countries and 33 American states have legalised medicinal cannabis.

In the investment side, cannabis companies and licence-holders have become one of the most-watched sector in the market, the so-called 'pot stocks'. because legalisation happened in the UK only in November 2018, the market is still young, leaving room for more opportunities.

Cassiopeia compiled key information for you to start your research and be in the know about the developments in this promising sector.

The UK commits to support sustainable development in Africa

In her visit to Africa, Theresa May shows commitment to boost long-term growth of economies all across the continent and promises the UK and Africa will continue to have strong ties regardless of Brexit outcomes.

The Prime Minister said she wanted the UK to become the G7’s biggest investor in Africa by 2022 — overtaking the position currently held by the US. May also pledged investments of £4bn in the African countries, hoping mainly to spur economic growth to create jobs for the young generations.

During her speech, stressed the multi-billion aid is not only to relieve poverty but instead to support future growth across the country. African growth is in fact in the interest of all economies worldwide; she said: “Between now and 2035, African nations will have to create 18 million new jobs every year to keep pace with the rapidly growing population. That’s almost 50 000 new jobs every single day, simply to maintain employment at its current level. It’s in the world’s interest to see that those jobs are created. If we fail to do so, the economic and environmental impact will soon reach every corner of the world.”

While Brexit negotiations are still ongoing and seem far to an agreement, in Africa, May promised to continue the partnerships with Mozambique and South Africa — even after EU and UK part ways: “Our integrated global economy means good news for British and African people. That is why I will today confirm plans to carry over the EU partnership agreement with the Southern African Customs Union and Mozambique, once the EU deals no longer apply to the UK.”

In order to be truly effective and life-changing, the effort has to come from all levels: “True partnerships are not about one party doing unto another, but states, governments, businesses and individuals working together in a responsible way to achieve common goals,” said the PM.

Indeed, In the private sector, UK-based companies have researched and addressed issues in Africa for a while. Leading Agri-tech company is Block Commodities is a case in point. Reborn from African Potash, previously a fertilizer/commodity trading company, Block is now deploying blockchain technology to create an efficient ecosystem to support increased agricultural output.

The disruptive potential of blockchain technology can benefits significanty developing economies, enabling organic growth at a local level. This is an important and necessary step to consolidate Africa as a global player in the food market.

“Creating a smart network between the farmers and the outer environment is now achievable because of technology… These things are now available for us to use and create a unique solution for farming problems in Africa,” says Block Chairman Chris Cleverly, highlighting the crucial role of innovation in economic and social growth.

Chris Cleverly has been spending the last 2 weeks in Africa, in Uganda for the upcoming pilot project and then South Africa, where he spent time with the Ramaphosa family, and met key people including Kwame Rugunda, son of Ugandan Prime Minister, the son of South African President, Tumelo Ramaphosa, and his wife Tshepo Motsepe. There were also some key players in the blockchain/cryptocurrency space like Cardano and its owner/inventor Charles Hoskinson.

Block Commodities Chairman Chris Cleverly in his recent visit to Africa

Agriculture represents more than 30% of Africa’s GDP and employs more than 60% of its working population. Yet, because of reduced use of resources and inefficient infrastructure, twenty million Africans face food insecurity, particularly in South Sudan, Somalia, Nigeria, Kenya, Ethiopia and Uganda. By 2025, Africa’s annual food is estimated to rise to $110 billion.

Long-term economic growth relies very much on exploiting the potential of the continent, both concerning natural and human resources wisely and the numbers above evidence the urgency which Africa needs sustainable long-lasting solutions.

May’s announcement follows the 2018 Blockchain report from Liquid Telecom which praises tech initiatives at local level and says they are keys to ensure the continent moves forward.

The report highlights Nigeria, Kenya and South Africa as the economies leading tech innovation in the continent.

The core objective of technological advancements is ultimately to bring positive change and improve quality of life. The best way to do so is to understand problems to their root, and develop creative solutions to issues that are proper to one area

“Technology and science innovation is not just the development of new technologies or discoveries but is often the novel application of an existing technology to specific local needs and limitations. In many cases, such breakthroughs are not ‘pure’ technology but rather solutions based on the ability of a local innovator to recognize a challenge, develop a deep understanding of its causes and opportunities, study the local landscape, scan the globe for best practices, and design a creative, implementable approach that is relevant, adaptable and scalable” said HE Ameenah Gurib- Fakim, President of Mauritius (2015–2018) in a speech at the Chatham House.

A new era is surging in Africa thanks to technology.