Union Jack Oil plc has acquired a 45% working interest in the Rogers enhanced oil recovery project and associated leases located in Seminole County, Oklahoma, USA. This purchase from current partner and operator, Reach Oil & Gas Company Inc, includes two legacy production wells, Rogers and S&M, along with one injector well, Coker.
Union Jack reported that Reach’s base case scenario indicates the potential recovery of up to an additional 124,000 barrels of oil (gross) from the two wells. The project is situated 2km from the Andrews 1-17 discovery well in the West Bowlegs prospect, where plans are in place to commence drilling at Andrews 2-17 in the coming weeks.
Operations at Rogers and S&M are set to begin in July, with a focus on significantly enhancing deliverability. The partners will use the Coker well to reinject water production sourced from nearby wells, aiming to rebuild reservoir pressure and increase oil and gas production.
Union Jack will pay US$105,000 in cash for its 45% working interest, alongside budgeted capital expenditure of approximately US$133,000, net to Union Jack, for the remainder of the current financial year. Both the acquisition and all capital expenditure will be funded from Union Jack’s existing cash resources.
David Bramhill, executive chairman of Union Jack, highlighted the strong potential for incremental production gains and timely returns on the investment. He noted that the Rogers project aligns strategically and geographically with Union Jack’s existing involvement in the Andrews 1-17 well. This alignment is expected to create operational synergies, enhance production, and boost revenue by consolidating critical mass near an existing commercial producer.
Bramhill expressed anticipation for providing market updates on stabilised production rates from Andrews 1-17, once permanent electricity supply and an upgraded pump jack are installed. These site upgrades are expected to significantly enhance current flow rates, with up to 100 barrels per day of high-quality (46º API gravity) oil having already been recorded at Andrews 1-17 during May 2024.
Union Jack Oil plc (LON:UJO) is an onshore oil and gas exploration company with a focus on drilling, development and investment opportunities in the United Kingdom hydrocarbon sector.
