Union Jack Oil plc has signed a farm-in agreement to acquire a 45% working interest in a well planned to drill test the West Bowlegs prospect in Seminole County, Oklahoma.
HUNTON LIMESTONE
The company last month announced it was planning joint ventures with its newly appointed agent and adviser Reach Oil & Gas Inc.
The Andrews-1 well is planned to be drilled in early Q2 2024, with a 75% geological chance of success estimated by operator Reach.
Drilling for some ten days to a depth of 5,200ft will target the Hunton limestone, one of the main hydrocarbon reservoirs in Oklahoma.
The Hunton limestone is unconformably overlain by the main oil-prone source rock, the Woodford shale and is in an “excellent position” for the migration of oil, said Union Jack.
“Primary oil recovery is expected to be by solution gas drive with any gas recovered to surface being sold into the local network.”
Union Jack will pay 60% of costs of the Andrews-1 well to earn a 45% economic interest with costs of further planned wells based on the company’s same economic interest.
Recently acquired propriety seismic data also covers further drill ready prospects identified within the interest area.
Reach owns the modern seismic node equipment supplied by UK-based Stryde Ltd.
Union Jack will pay US$347,000 for seismic acquisition and planning and an estimated $516,000 for drilling and completion of Andrews-1.
The company will pay the costs from existing cash resources.
Executive chairman David Bramhill added that, in a commercial success case, the Andrews-1 well would start producing within one month or sooner from spudding.
“Similar low-cost development wells nearby, typically produce initially at approximately 150 barrels of oil and over 200 thousand cubic feet of gas per day and can provide rapid pay-back within six months.
“The West Bowlegs transaction meets our criteria of acquiring material interests in projects with near-term planned drilling and capable of adding significant cash-flow, while complementing our existing profitable production and development interests onshore UK.
“Our strategic partnership with Reach offers Union Jack the opportunity to access a wider portfolio of prospects and drill-ready targets.”
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