Union Jack acquires 45% in Rogers EOR project

Union Jack Oil plc has acquired a 45% working interest in the Rogers enhanced oil recovery project and associated leases in Seminole County, Oklahoma, USA.

PRODUCTION

The purchase from current partner and operator Reach Oil & Gas Company Inc comprises two legacy production wells of Rogers and S&M and one injector well, Coker.

Reach’s base case scenario indicates recovery of up to a further 124,000 barrels of oil (gross) from the two wells, said Union Jack.

The project lies 2km from the Andrews 1-17 discovery well in the West Bowlegs prospect, where plans are underway to spud Andrews 2-17 over the coming weeks.

Operations at Rogers and S&M are due to start in July and include “significantly” enhancing deliverability.

The partners will use the third well of Coker to reinject water production sourced from nearby wells to rebuild reservoir pressure and increase oil and gas production.

Union Jack will pay US$105,000 cash for its 45% working interest as well as budgeted capital expenditure of circa US$133,000, net to Union Jack, through the remainder of the current financial year.

The acquisition and all capex will be paid from its existing cash resources.

Executive chairman David Bramhill added that there was “strong potential for incremental production gains and timely payback” on the investment.

“The Rogers project offers an excellent strategic and locational fit with Union Jack’s existing participation at the Andrews 1-17 well, helping to provide operational synergies and increase production and revenue by building critical mass in the vicinity of this existing commercial producer.

“I look forward to updating the market on stabilised production rates from Andrews 1-17 in due course, once a permanent electricity supply and upgraded pump jack have been installed.

“These site upgrades are expected to materially enhance current flow rates, with up to 100 barrels per day of high quality (46 º API gravity) oil having already been recorded at Andrews 1-17 during May 2024.”