12 March 2024
Union
Jack Oil plc
("Union
Jack" or the "Company")
United States Producing Mineral Royalties
Purchase
Union Jack Oil plc, (AIM: UJO), a United
Kingdom ("UK") and United States of America ("United States" or
"USA") onshore focused, production, development and exploration
company is pleased to announce details of a further expansion
of the Company's Mineral Royalty ("Royalties") portfolio, via the
acquisition of three additional packages, brokered by the Company's
Oklahoma City, USA and Aberdeen, UK, based agent and adviser, Reach
Oil & Gas Inc ("Reach").
The Royalties purchased are located within the
Bakken Shale, North Dakota, Permian Basin, Texas and the Eagle Ford
Shale, Texas.
New Royalties
Purchased
· Top
tier, Bakken Shale, Williston Basin, diversified producing 96 well
interest package, located in Dunn, McKenzie and Williams Counties,
North Dakota (Effective payment date March 2024)
-
Strong cash-flow generating asset with significant
upside
- 76
proved, developed and producing wells
-
eight drilled and uncompleted wells
-
eight permitted wells
-
two newly completed wells awaiting pay status
- 38
undrilled well locations
- 12
areas allocated to drill for and produce oil or natural
gas
-
Quality operators include, Burlington Resources (a subsidiary
of ConnocoPhillips), Continental Resources, Hess, Chord Energy, WPX
Energy (a subsidiary of Devon Energy), Grayson Mill Operating and
Kraken Operating LLC
·
Permian Basin, eight well producing unit, located in Howard
and Borden Counties, Texas. Operated by Vital Energy Inc, a
quoted, Permian Basin focused entity, based in Tulsa, Oklahoma
(Effective payment date March 2024)
·
Eagle Ford Shale, nine producing horizontal well package,
located in DeWitt County, Texas operated by ROCC Operating LLC
(Effective payment date March 2024)
The total combined cash consideration for the
Royalties was circa
US$168,000 (£133,333). The acquisition of the Royalties has
been funded from existing cash balances.
Existing
Royalties
·
Cronus Unit, containing a 25 well package in the Permian
Basin, Midland County, Texas. The property is comprised of
nine Chevron operated wells, one XTO (a subsidiary of Exxon)
operated horizontal well and 15 XTO operated vertical wells
(Effective payment date December 2023)
· COG
Operating LLC (a subsidiary of ConocoPhillips) operated, Powell
Ranch Unit, consisting of 15 wells in the Permian Basin, Upton
County, Texas. The property is comprised of seven horizontal
wells and eight vertical wells (Effective payment date November
2023)
·
Occidental operated Palm Springs Unit, containing 10
horizontal wells in the Permian Basin, Howard County, Texas
(Effective payment date January 2024)
Appeal of
United States Royalties and Focus Areas
·
Focus on the Permian Basin, Texas, which provides
approximately 6% of the world`s daily oil requirements, the Bakken
Shale, Williston Basin, North Dakota and the Eagle Ford Shale,
Texas
·
Exposure to most active basins and largest operators in the
United States
·
Monthly income with no development or operating
costs
·
Owned in perpetuity
· No
forward liability or future payments
Reach Oil and
Gas
Reach, and its sister company Reach Energy
Limited, established in 2013, are successful private, production,
development and exploration entities, based in Oklahoma, United
States, with offices in Aberdeen, UK and Oklahoma City,
USA.
Union Jack also has various Joint Ventures in
place for the drilling of wells with Reach on the West Bowlegs and
Wilzetta Prospects, located in Oklahoma during 2024.
David
Bramhill, Executive Chairman of Union Jack,
commented:
"We are pleased to announce three additional
Royalties acquisitions, further expanding our cash-generating
assets of producing properties in the USA.
"To date, Union Jack holds interests in 165
producing wells in three prolific basins in Texas and North
Dakota.
"We are particularly pleased to have purchased
the Bakken Shale package which holds material upside.
"The intent of the Company is to continue to
build a quality portfolio of remunerative USA assets. The
Royalties are held in perpetuity and the expected economic life of
these assets is more than 26 years with a current Internal Rate of
Return in excess of 20%."
For
further information, please
contact:
Union Jack Oil
plc David Bramhill
|
info@unionjackoil.com
|
Reach Oil
& Gas Company Inc Miles
Newman
Jim
McKenny
|
miles@reachoil-gas.com
jmckenny@reachoil-gas.com
|
SP Angel
Corporate Finance
LLP
Nominated Adviser and Joint
Broker Matthew Johnson
Richard Hail
Kasia Brzozowska
Caroline Rowe
|
+44 (0)20 3470
0470
|
Shore Capital
Joint Broker Toby
Gibbs
Iain Sexton
|
+44 (0)20 7408
4090
|
Gneiss
Energy Limited
Financial Adviser Jon
Fitzpatrick
Paul Weidman
|
+44 (0)20 3983
9263
|
BlytheRay
Financial PR Tim
Blythe
Megan Ray
|
+44 (0)20 7138 3204
|