Union Jack Oil, a company focused on onshore hydrocarbon production and exploration in the UK and USA, recently provided a positive update on its strategic expansion into the USA. The company is making rapid progress in its oil and gas production activities, marking a significant milestone with the commercial discovery of the Andrews 2-17 well.
The Andrews 1-17 well, drilled earlier, has also been declared a commercial discovery. Since late May 2024, it has produced 6,460 barrels of high-quality, ultra-light oil and 382,000 cubic feet of gas. The well is currently undergoing test production to determine the optimal flow rate. Recent work has connected the well to a gas pipeline, allowing for the sale of gas to the market. The water produced from this well is being used to enhance reservoir pressure in nearby wells, which is expected to reduce operating costs and optimise production.
The recently completed Andrews 2-17 well has also been declared a commercial discovery. This well has produced 544 barrels of oil and nearly 1.9 million cubic feet of gas since it began test production in early August 2024. Both the Andrews wells are connected to a local gas pipeline, with products being sold to Enerfin. The current production rate for Andrews 2-17 is promising, but efforts are ongoing to stabilise and optimise flow rates.
Union Jack has further strengthened its position in the USA by acquiring a 45% interest in the Taylor and Moccasin wells, which are scheduled to be drilled in Q4 2024. The Taylor well, located in Seminole County, Oklahoma, is expected to target multiple promising zones, with robust economic potential. Similarly, the Moccasin well, located in Pottawatomie County, Oklahoma, is another high-potential project with several target zones supported by 3D seismic data.
In addition to these developments, Union Jack is involved in other significant projects in the USA, including the Rogers Secondary Recovery Project and the East Shawnee 3D Seismic Acquisition Programme. These initiatives are expected to further enhance production and revenue.
Since beginning its USA operations in early 2024, Union Jack has quickly established a profitable hydrocarbon venture. The company’s successful entry into the USA market has already resulted in generating and banking oil and gas revenues from the Andrews field, with payback on the initial investment anticipated within six months.
Union Jack is also strengthening its presence in the USA financial markets, with its shares now traded on both the OTCQB Venture Market in the USA and the AIM Market of the London Stock Exchange. The company has engaged Harbour Access, a North American Investor Relations Group, and Lighthouse Equity Research to increase visibility and provide equity research coverage in the USA.
In a statement, David Bramhill, Executive Chairman of Union Jack, expressed his satisfaction with the company’s rapid progress in the USA and the significant returns achieved in a short time. He also highlighted the considerable opportunities in Oklahoma and looked forward to further drilling activities later in the year. Miles Newman, Chairman of Reach, also expressed his excitement about the successful development of the Andrews field and the upcoming drilling campaigns.
Union Jack Oil’s strategic expansion into the USA is proving to be highly successful, with rapid progress in production and revenue generation, and a promising outlook for future drilling activities.
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.
