Union Jack Oil plc is positioning itself as a prominent player in the energy sector, both in the UK and the USA. The company’s recent strides in Oklahoma highlight its potential and commitment to broadening its portfolio.
Zeus Capital’s latest report indicates that Union Jack has successfully brought its Andrews 1-17 and 2-17 wells in Oklahoma into production, contributing positively to the company’s output and cash flow. Since May, the Andrews 1-17 well has yielded an impressive 6,500 barrels of 46-degree API oil, while the Andrews 2-17 well has reached gross rates of up to 184 barrels of oil per day and 0.32 million cubic feet of gas per day. The commercial discovery of the Andrews 2-17 well marks a significant milestone for Union Jack in the region. Daniel Slater, a research analyst at Zeus Capital, praised this achievement as a strong start to Union Jack’s drilling campaign in Oklahoma.
Union Jack’s success in Oklahoma is set to expand further, with the company having secured interests in two additional wells, Taylor and Moccasin, which are slated for drilling in the fourth quarter of 2024. The Taylor well will target a Hunton Remnant reservoir, while the Moccasin well will focus on structural targets in Hunton and Wilcox reservoirs. This strategic move reflects the company’s vision and determination to grow its presence in the US market.
Meanwhile, Union Jack continues to advance its UK operations, particularly at the Wressle field, where it holds a 40% interest. The Wressle field has been a significant source of revenue since production began in 2021. Future plans include targeting the Penistone Flags formation and installing gas export facilities, reinforcing Union Jack’s strong position in the UK energy sector.
Looking ahead, Union Jack’s US business is expected to gain further momentum with these new developments. The company’s increasing investment in the US, combined with its ongoing operations in the UK, suggests a promising future. According to Slater, the US is becoming an increasingly important growth area for Union Jack.
With a market capitalisation of £19 million and a positive outlook, Union Jack Oil plc is well-positioned for continued growth in the energy sector. The combination of successful drilling in the US and ongoing developments in the UK provides a solid foundation for enhancing shareholder value in the years to come.
Union Jack Oil plc (LON:UJO) is an oil and gas company with a focus on onshore production, development, exploration and investment opportunities within the United Kingdom and the United States of America hydrocarbon sector.
