(Alliance News) - Union Jack Oil PLC on Monday said it will expand its operations to the US through a partnership with Reach Oil & Gas Inc.
The Bath-based UK-focused oil and gas company said the collaboration will focus on several "value accretive, exploration, drilling, development and potential production ventures" in Oklahoma, which it said is one of the highest ranked hydrocarbon production locations in the US.
Chair David Bramhill said: "Union Jack's existing onshore UK conventional production, development and exploration activities will remain our core focus for the foreseeable future. This distinct strategy has transformed the company in to a self-sustainable, dividend paying, profit making entity."
Union Jack Oil said it will purchase three mineral royalty packages in the US, which will be brokered by Reach Oil & Gas as its agent and adviser.
Bramhill added: "The acquisition of the royalties provides immediate cash-flow, is without [capital expenditure] exposure and has the scope to grow exponentially, as new wells are drilled and completed within the prolific Permian Basin. The longevity of the royalties is assured, as the economic life of the wells is in excess of 26 years."
Shares in Union Jack Oil rose 5.6% to 19.00 pence each in London on Monday morning.
By Sabrina Penty, Alliance News reporter
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Union Jack (UJO)