# Union Jack Oil signs Farm-In Agreement for drilling project in Oklahoma

- Link: https://www.directorstalkinterviews.com/union-jack-oil-signs-farm-in-agreement-for-drilling-project-in-oklahoma/4121141081
- Published: 2024-02-06T07:07:26+00:00
- Author: Amilia Stone

**[Union Jack Oil](https://www.directorstalkinterviews.com/company/union-jack-oil-plc/ujo.l)
plc** ([LON:UJO](https://www.directorstalkinterviews.com/company/union-jack-oil-plc/ujo.l)),
a predominantly UK focused onshore hydrocarbon production, development and exploration
company, has announced, further to its announcement dated 29 January 2024, that 
the Company has signed a farm-in agreement with Reach Oil & Gas Company Inc, to 
acquire a 45% working interest in a well planned to be drilled during Q2 2024, to
test the West Bowlegs Prospect and in an area of associated interest, located in
Seminole County, Oklahoma, USA.

·    Andrews-1 well planned to be drilled in early Q2 2024, with a geological chance
of success estimated by the Operator (Reach) to be 75%

·    Approximate ten-day drilling period to a depth of 5,200 feet

·    Completion time is swift; approximately eight days including perforating and
flow-back if successful

·    Recently acquired proprietary 3D seismic covering the proven producing Hunton
Limestone, one of the main hydrocarbon reservoirs in Oklahoma

·    Union Jack to pay 60% of costs of the Andrews-1 well to earn a 45% economic
interest

·    Going forward, the cost of further planned wells will be based on the Company’s
45% economic interest

·    Further drill ready prospects covered by 3D seismic identified within interest
area earned by Union Jack

·    Strategic partnership with Reach offers the opportunity to access a wider inventory
of prospects and further drill-ready targets in Oklahoma

·    Seismic acquisition and planning costs of US$347,000 are payable by Union Jack

·    Cost for drilling and completion of the Andrews-1 well is estimated to be approximately
US$516,000 net to Union Jack

·    Costs to be paid from existing cash resources

The target for this well is 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.  Oil-filled porosity is encountered within a basal Oolite limestone formation
in wells within a mile of the first drill location for the Andrews-1 well and this
is believed to be the main reservoir within West Bowlegs.

West Bowlegs is associated with a remnant of the Hunton Limestone and is expected
to be at original pressure with the seal for the reservoir being the Woodford Shale
and lateral seal against the underlying Sylvan Shale. 

Primary oil recovery is expected to be by solution gas drive with any gas recovered
to surface being sold into the local network.   

Reach is an accredited operator in the USA, owning and operating oil and gas production
facilities in Seminole and Pottawatomie Counties in Oklahoma. All prospects are 
generated by Reach which owns modern seismic equipment, supplied by a UK based company
Stryde Limited. 

Gneiss Energy has acted as financial adviser to this transaction.

> **David Bramhill, Executive Chairman, commented:** “As indicated in the announcement
> dated 29 January 2024, I am delighted to be able to announce the execution of 
> the agreement with Reach for our initial near-term drilling operation in Seminole
> County, Oklahoma.
> “The Andrews-1 well has a high chance of success and if proven commercial could
> be in production 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.
> “I look forward to reporting to shareholders on this new phase in the growth of
> Union Jack, further near-term project interest acquisitions and the spudding of
> the Andrews-1 well in early Q2 2024.”

> **Miles Newman, Chairman of Reach, commented:** “We acquired the West Bowlegs 
> 3D seismic survey, which is very close to our existing production operations with
> our state-of-the art Stryde seismic node system and have mapped several interesting
> prospects.
> “Reach is focused on generating drilling opportunities on the US onshore that 
> can benefit from modern 3D seismic.
> “We are very pleased to expand our activities with Union Jack onshore US.”

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