Union Jack Oil plc (LON:UJO, OTCQB: UJOGF), a UK and USA focused onshore hydrocarbon production, development and exploration company, has announced the acquisition of a 45% working interest in the Rogers Enhanced Oil Recovery Project and associated leases located in Seminole County, Oklahoma, USA from Reach Oil & Gas Company Inc.
- Acquisition of a 45% WI in the Rogers Project containing two production wells (Rogers and S&M) and one injector well (Coker)
- Transaction structured to provide Union Jack Oil with a comparable WI to neighbouring West Bowlegs area of interest, including the producing Andrews 1-17 well
- Union Jack to pay US$105,000 cash consideration for its 45% WI, with no promote or back-costs payable
- Rogers Project activity scheduled to commence July 2024
- Budgeted Rogers Project capital expenditure (“CAPEX”) of c.US$133,000 (net to Union Jack) to occur through the remainder of the current financial year
- The acquisition and all CAPEX will be paid from Union Jack’s existing cash resources
- The Operator’s base case scenario indicates that up to a further 124,000 barrels of oil (gross) can be recovered from the Rogers and S&M wells in aggregate
The Rogers Project is located approximately two kilometres from the Andrews 1-17 discovery well and includes plans to significantly enhance deliverability from Rogers and S&M, two legacy production wells.
