10 July 2024
Union Jack Oil plc
("Union Jack" or the
"Company")
Spudding of Andrews 2-17 Well - West
Bowlegs Oklahoma, USA
Union Jack Oil plc (AIM: UJO, OTCQB: UJOGF), a
UK and USA focused onshore hydrocarbon production, development and
exploration company is pleased to report, further to the Company's
announcement dated 11 June 2024, that it has been informed by the
Operator, Reach Oil & Gas Company Inc ("Reach") that the
Andrews 2-17 well, located in Seminole County, Oklahoma, USA,
has been spudded.
Union Jack hold a 45% working interest in the
Andrews 2-17 well.
· Andrews 2-17 well has an
Operator estimated geological chance of success of circa 80%
· Approximate eight-day drilling
period to a depth of circa
4,700 feet
· Completion time is swift;
approximately eight days including perforating and flow-back if
successful
· This up-dip (located up the
slope) offset well to Andrews 1-17 is expected to encounter a
similar reservoir above the oil/water contact seen in that
commercial discovery well
· On success, the 2-17 well will
share common production facilities with the Andrews 1-17, thereby
lowering costs and optimising project economics
· Union Jack paying pro-rata 45% share of well costs - no
promote or back charges
· Drilling and completion costs
of circa US$340,000 net,
already paid from the Company's existing cash resources
The target for this well is the Hunton
Limestone, one of the main hydrocarbon reservoirs in
Oklahoma. The Hunton Limestone is unconformably overlain by
the main oil-prone source rock, the Woodford Shale and is in an
excellent position for the migration of oil.
Primary oil recovery is expected to be by
solution gas drive with any gas recovered to surface being sold
into the local network.
Reach is an accredited operator in the USA,
owning and operating oil and gas production facilities in Seminole
and Pottawatomie Counties in Oklahoma. All prospects are generated
by Reach which owns modern seismic data acquisition equipment,
supplied by a UK based company Stryde Limited.
Follow the Company on X (formerly Twitter):
@UnionJackOilplc
David Bramhill,
Executive Chairman, commented: "I am pleased to
announce the spudding of our second well, in Seminole County,
Oklahoma, in partnership with Reach.
"The Andrews 2-17 well has a high chance of
success and if proven commercial could be in production within
weeks from spudding. Similar low-cost development wells
nearby demonstrate that rapid pay-back can be achieved within six
months.
"The rate of progress from generating a
drillable prospect, obtaining permission to drill and spudding in
Oklahoma is remarkable.
"Work continues at the Andrews 1-17 wellsite,
comprising installation of gas export facilities and further
upgrades. This work is expected to be completed by late
July/early August 2024, followed by flow rates and other associated
information.
"I look forward to reporting to shareholders on
drilling progress of the Andrews 2-17 well over the course of the
next few weeks.
"Our relationship with Reach continues to grow
and over the coming months we expect to expand our drilling
portfolio and establish an impressive inventory of wells to be
drilled, all covered by high-quality 3D seismic data.
"Closer to home I am delighted to report
revenues exceeding US$20,000,000 net to Union Jack, from our key
Wressle project, onshore UK, where we remain of the view that the
most productive phase of development, the material Penistone Flags
formation awaits."
For further
information, please contact the following:
Union Jack Oil
plc
info@unionjackoil.com
David Bramhill
SP Angel
Corporate Finance LLP
+44
(0)20 3470 0470
Nominated
Adviser and Joint Broker
Matthew Johnson
Kasia Brzozowska
Richard Hail
Shore
Capital
+44 (0)20 7408 4090
Joint
Broker
Toby Gibbs
Harry Davies-Ball
Gneiss Energy
Limited
+44 (0)20 3983 9263
Financial
Adviser
Jon Fitzpatrick
Paul Weidman
Harbor
Access
+1 (475) 477 9402
USA Investor
Relations
Jonathan Paterson
Tommy Zima
BlytheRay
+44 (0)20 7138 3204
Financial
PR
Tim Blythe
Megan Ray