29 October 2024
This
announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Union Jack Oil plc
("Union Jack" or the
"Company")
Spudding of Taylor-1 Well, Seminole
County, Oklahoma, USA
Union Jack Oil plc (AIM: UJO, OTCQB: UJOGF) a
USA and UK focused onshore hydrocarbon production development and
investment company is pleased to announce that it has been informed
by the Operator, Reach Oil and Gas Company Inc ("Reach") that the
spudding of the Taylor-1 well ("Taylor"), located in Seminole
County, Oklahoma, USA is expected on or around 31 October
2024. Union Jack holds a 45% working interest in this
well.
The Taylor-1 well is an untested 3D seismic
supported Hunton Remnant prospect with secondary targets in the
Misener and Wilcox sands.
Wilcox structures to the north and the east of
Taylor were prolific in 1920s, producing in the thousands of
barrels of oil per day.
Historically, there have been several regional,
high-profile fields such as the Bowlegs field that produced 195
million barrels of oil from the Hunton, Wilcox and Misener
reservoirs.
Reach estimates the geological chance of
success to be 40%.
Taylor will be followed as soon as possible by
the drilling of the Moccasin well ("Moccasin") in which Union Jack
hold a 45% working interest.
Moccasin is an untested 3D seismic supported
Hunton and Wilcox structure with secondary targets in Pennsylvanian
Channel Sands and Base Pennsylvanian Unconformity Sand. The
Moccasin structure is a compressive feature, associated with the
regional Wilzetta Fault. This strike-slip fault was active
through the Ordovician to early Carboniferous periods and is
responsible for several large oil accumulations.
The Moccasin structure lies close to the
Woodford Shale, the main source for light oil across the
region.
In the area of the Moccasin well, a deviation
in the fault has caused compressive forces forming numerous dome
and fault structures which have led to proven oilfields, such as
the adjacent North-East Shawnee and North-West Redhill fields that
have produced more than 6 million barrels of oil.
Reach assesses a high chance of finding movable
hydrocarbons in the Base Pennsylvanian Sands and an approximate 50%
chance of success in other target zones.
Taylor and Moccasin drilling and completion
costs are being funded from the Company`s existing cash
resources.
David
Bramhill, Executive Chairman of Union Jack,
commented: "The management decision in late
2023, to focus on opportunities in the USA has already delivered
rewards in a short period and I am pleased to report the imminent
spudding of the Taylor well that has a good chance of
success.
"One year on, our entry into the USA is already
generating cash flow from the Andrews field and Mineral royalty
portfolio where returns of 20%+ are being seen in respect of our
original capital investment.
"The successful, now predominantly gas
producing Andrews 1-17 and 2-17 wells, forming the Andrews field,
in which Union Jack hold a 45% working interest, have to date
produced 8,765 barrels of oil and 20,221,000 cubic feet of
gas.
"In the UK, the Company is pleased to report
cumulative revenues of over US$21,000,000 from Wressle, net to its
40% interest, where the view of management is that the most
productive phase of development awaits.
"Also in the UK, ongoing site improvements to
the Keddington production asset, where Union Jack holds a 55%
interest, are progressing well and production is expected to
re-commence during late 2024.
"Despite the current fiscal uncertainty that
overshadows the UK upstream, Union Jack remains profitable and the
Board is committed to delivering on its stated growth strategy in
both the USA and UK."
For further
information, please contact:
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
Richard Hail
Caroline Rowe
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
Harbour
Access
+1 (475) 477 9402
USA Investor
Relations
Jonathan Paterson
