(Alliance News) - Union Jack Oil PLC on Tuesday announced new deals to boost its drilling and mineral royalty portfolio.
The Bath-based UK- and US-focused oil and gas company said it signed two farm-in agreements with Reach Oil & Gas Co Inc.
Under the first agreement, Union Jack Oil will buy a 75% working interest in a well planned to be drilled in the third quarter of 2024. This is aimed to test the Footwall Fold prospect in the Wilzetta Fault play in central Oklahoma.
The company said that the main Wilzetta fault zone target will be tested and has estimated recoverable oil of over 200,000 barrels.
Under the second agreement, Union Jack Oil will acquire a 37.5% working interest in a 2D and 3D seismic acquisition programme to identify additional drillable prospects along the Wilzetta fault.
The company said it will pay USD280,000 net for 50% of the 2D and 3D programme, for the planned 37.5% working interest in any prospects generated.
Executive Chair David Bramhill said: "We expect to see the first of our wells, being the Andrews-1 on the West Bowlegs Prospect, drilled in early Q2 2024 and we are pleased to see good progress already being made with the well location staked and site construction to commence shortly."
He added: "The board is delivering on its aims of identifying and introducing potential new growth opportunities in a welcoming jurisdiction, that is highly prospective, has existing operations and infrastructure accompanied with an attractive fiscal environment, to complement the company's already successful and profitable production activities in the UK."
Union Jack Oil shares were 0.2% higher at 17.53 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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Union Jack (UJO)