Union Jack Oil plc (LON:UJO) is positioning itself as a key player in both the UK and the USA. The company’s recent developments in Oklahoma demonstrate its growing potential and commitment to expanding its portfolio.
Zeus Capital highlights in its latest report, Union Jack has successfully brought its Andrews 1-17 and 2-17 wells onstream in Oklahoma. These wells are already contributing to the company’s production and cash flows. The Andrews 1-17 well has produced an impressive 6,500 barrels of 46-degree API oil since May, while the Andrews 2-17 well has shown gross rates of up to 184 barrels of oil per day and 0.32 million cubic feet per day of gas. This well has been declared a commercial discovery, marking a pivotal moment for Union Jack in the region. As Daniel Slater, a research analyst at Zeus Capital, pointed out, “This shows a good start to Union Jack’s Oklahoma drilling campaign.”
The success in Oklahoma doesn’t stop there. Union Jack has also farmed into two new wells, Taylor and Moccasin, which are scheduled for drilling in the fourth quarter of 2024. These wells have significant potential, with the Taylor well targeting a Hunton Remnant reservoir and the Moccasin well focusing on structural targets in Hunton and Wilcox reservoirs. This expansion underscores the company’s strategic vision and commitment to growth in the US market.
In addition to its US activities, Union Jack continues to develop its UK assets. The Wressle field, where Union Jack holds a 40% interest, has been a significant revenue generator since it came onstream in 2021. Future plans for Wressle include targeting the Penistone Flags formation and installing gas export facilities, further solidifying Union Jack’s position in the UK energy sector.
Looking forward, Union Jack’s USA business is expected to gain momentum with these new developments. The company’s commitment to deploying more capital in the US, alongside its ongoing UK operations, suggests a robust future for Union Jack. As Slater notes, “The USA is rapidly becoming an important new growth area for Union Jack’s business.”
With a market capitalisation of £19 million and a positive outlook for the coming years, Union Jack Oil plc is poised to continue its upward trajectory in the energy sector. The combination of successful drilling in the US and ongoing developments in the UK provides a strong foundation for future growth and shareholder value.
