Union Jack Oil’s Andrews-1-17 well, located at the West Bowlegs prospect in Oklahoma, is considered a low-risk drilling opportunity with a 75% chance of geological success, according to analysis from Shore Capital, the company’s house broker.
The well aims to tap into the Hunton Limestone, a leading producing reservoir in Oklahoma. Union Jack Oil has indicated is well-defined by newly acquired 3D seismic data specific to the area.
This endeavour marks Union Jack’s inaugural drilling project in collaboration with Reach. The well offers prospects for swift commercialization and return on investment, should it prove successful.
Shore Capital has reinforced its confidence in Union Jack Oil with a 90p/share Risky NAV (Net Asset Value) estimate. The firm highlights Union Jack’s debt-free status, its shareholder-friendly distribution approach, and robust cash flow, largely propelled by its flagship Wressle development in North Lincolnshire.
In the short term, Union Jack’s joint venture with Reach in the United States is gaining considerable momentum. Furthermore, significant advancements towards drilling at West Newton have also been reported.
David Bramhill, Executive Chairman, commented: “I am delighted to be able to announce the imminent spudding of our first drilling venture with Reach, in Seminole County, Oklahoma, USA.
“The Andrews-1-17 well has a high chance of success and if proven commercial could be in production within literally weeks from spudding. Similar low-cost development wells nearby, typically produce initially at approximately 150 barrels of oil and over 200 thousand cubic feet of gas per day and can provide rapid pay-back within six months.
“The rate of progress from generating a drillable prospect, obtaining permission to drill and putting a rig onsite in Oklahoma is remarkable.
“I look forward to updating shareholders on drilling progress at the Andrews-1-17 well over the course of the next few weeks.”
