Union Jack Oil’s strategic leap across the Atlantic is more than just an expansion—it’s a targeted drive into the heart of America’s most prolific oil and gas basins. With established production, new discoveries, and high-margin royalty streams, the company is building a diversified and highly profitable footprint in the US energy market. Here’s how Union Jack is positioning itself as a serious player in the next wave of onshore energy growth.
Union Jack Oil plc, already known for its UK operations, has rapidly emerged as a dynamic force in the United States through a series of calculated investments and joint ventures. Partnering with Oklahoma-based Reach Oil and Gas Company, Union Jack now holds significant working interests in multiple producing wells and development projects throughout Oklahoma, as well as a growing mineral royalty portfolio across the Permian Basin, Bakken Shale, and Eagle Ford Shale.
The company’s drilling campaign has already yielded notable successes. The Andrews Field in Seminole County, Oklahoma, established by the commercial discoveries of Andrews 1-17 and 2-17, produces from the prolific Hunton Limestone formation—known for its ultra-light, high-grade oil and substantial gas volumes. This asset not only generates consistent revenue but also anchors Union Jack’s operational credibility in the US.
Building on this momentum, the Moccasin 1-13 well in Pottawatomie County confirmed significant oil production from the 1st Wilcox formation, flowing at an impressive rate of 620 barrels per day during initial tests. Additional zones, including the Bartlesville and Red Fork formations, remain untapped, hinting at further upside. The Rogers Enhanced Oil Recovery (EOR) project complements these efforts with compelling economics: low capital intensity, robust existing infrastructure, and a potential recovery of 124,000 barrels of oil, translating into a projected gross revenue of $7.5 million and an IRR nearing 80%.
Union Jack’s US strategy isn’t just about exploration—it’s about building long-term, low-risk cash flow. Its mineral royalty portfolio delivers just that. Spread across 165 wells, the portfolio includes properties operated by industry giants such as Chevron, ExxonMobil (via XTO), ConocoPhillips (via COG Operating), Occidental, and Hess. These royalties provide monthly income with no exposure to development or operational costs, making them an exceptionally efficient source of revenue. Some royalty assets are projected to have an economic lifespan exceeding 26 years and are delivering IRRs north of 30%.
These royalty interests span premier regions including the Midland and Upton Counties of the Permian Basin, DeWitt County in the Eagle Ford, and North Dakota’s Bakken Shale—regions synonymous with innovation, infrastructure, and scale in the oil and gas industry. The exposure to high-performing operators, combined with perpetual ownership of these royalties, provides both security and scalability.
Union Jack Oil’s disciplined approach to capital allocation and operational efficiency underpins its US expansion. With cost control, seasoned technical teams, and established partnerships already in place, the company is well positioned to deliver sustained growth and enhanced shareholder returns. Whether through production, secondary recovery, or passive royalty income, Union Jack has carefully engineered a portfolio designed for resilience and profitability in a volatile global energy landscape.
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.
