REG - Union Jack Oil PLC - Spudding of Andrews 2-17 Well

Union Jack OilAnnouncement

10/07/2024 07:00

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RNS Number : 7473V  Union Jack Oil PLC  10 July 2024

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

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