7 January 2025
This
announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Union Jack Oil plc
("Union Jack" or the
"Company")
Spudding of Moccasin 1-13 Well, Seminole
County, Oklahoma, USA
Completion Update on Taylor 1-16 Well,
Oklahoma, USA
Union Jack Oil plc (AIM: UJO, OTCQB: UJOGF) a
USA and UK focused onshore hydrocarbon production, development,
exploration and investment company is pleased to announce that it
has been informed by the Operator, Reach Oil and Gas Company Inc
("Reach") that the Moccasin 1-13 well ("Moccasin"), located in
Seminole County, Oklahoma, USA has been spudded. Union Jack
holds a 45% working interest in this well.
A completion programme update on the Taylor
1-16 ("Taylor") well is also provided, in which Union Jack holds a
45% working interest.
Moccasin
1-13
Moccasin is an untested 3D seismic supported
Hunton and Wilcox structure with secondary targets in Pennsylvanian
Channel Sands and Base Pennsylvanian Unconformity Sand. The
Moccasin structure is a compressive feature, associated with the
regional Wilzetta Fault. This strike-slip fault was active
through the Ordovician to early Carboniferous periods and is
responsible for several large oil accumulations.
The Woodford Shale, the main source for light
oil across the region is present within the Moccasin structure and
between the primary reservoir targets.
In the area of the Moccasin well, a deviation
in the fault has caused compressive forces forming numerous dome
and fault structures which have led to proven oilfields, such as
the adjacent productive North-East Shawnee and North-West Redhill
fields.
Reach assesses a high chance of finding movable
hydrocarbons in the Base Pennsylvanian Sands and an approximate 50%
chance of success in other target zones.
Moccasin will be drilled to a Target Depth of
5,500 feet.
Moccasin drill and completion costs have
already been funded from the Company`s existing cash
resources.
Taylor 1-16
Completion Programme Update
Further to the announcement of 26 November
2024, Taylor was drilled to a Total Depth of 4,577 feet and three
potential production zones were encountered, the Hunton, Misener
and Cromwell.
Operations on Taylor are proceeding through the
completion and testing phase in the three prospective zones named
above. The deepest formation, the Hunton has been perforated
and the reservoir fluid is light oil with no water, however, to
achieve maximum flow a vacuum pump will be deployed to increase the
rate at which this zone will be pumped.
The vacuum pump is expected to be delivered to
site within 14 days and in the meantime the well will be perforated
this week to test the next reservoir target up-hole, the Misener
zone. Ultimately, it is anticipated that the production from
all three reservoirs will be co-mingled.
Taylor drilling and completion costs have
already been funded from the Company`s cash resources.
David
Bramhill, Executive Chairman of Union Jack,
commented: "We look forward keenly to the
drilling results from the Moccasin well that, if successful, has
the potential to be significant for Union Jack and its
future.
"I am pleased to report that the Company
remains in a robust financial position having paid all major
outgoings including drilling and completion costs for its current
USA activities.
"We continue to generate material revenues in
the UK from our flagship project at Wressle (Union Jack 40%) that
is awaiting approvals to proceed with the next stage of
development. These revenues are expected to be bolstered in
the near future from Keddington (Union Jack 55%) by the expected
restart in early 2025.
"Cash generation in the UK is complemented by
our entry into the USA which we announced in early 2024, with cash
flow from the two Andrews' wells discoveries (Union Jack 45%), plus
additional revenues from our US Mineral royalty portfolio that
provides a constant and pleasing return on our
investment.
"Notably, we have meaningful interests in all
our principal projects that we believe will assist in being able to
deliver on our stated growth strategies in both the UK and
USA.
"We look forward to reporting in due course on
the drilling results from the Moccasin well and following
completion, production rates from Taylor."
For further
information, please contact:
Union Jack Oil
plc
info@unionjackoil.com
David Bramhill
SP Angel
Corporate Finance
LLP
+44 (0)20 3470 0470
Nominated
Adviser and Joint Broker
Matthew Johnson
Richard Hail
Caroline Rowe
Shore
Capital
+44 (0)20 7408 4090
Joint
Broker
Toby Gibbs
Harry Davies-Ball
Gneiss Energy
Limited
+ 44 (0)20 3983 9263
Financial
Adviser
Jon Fitzpatrick
Paul Weidman
Harbour
Access
+1 (475) 477 9402
USA Investor
Relations
Jonathan Paterson
