Union Jack Oil (UJO) , a UK-focused onshore hydrocarbon explorer, announced a spud date of March 20, 2024 for its Andrews-1-17 discovery well, aiming to test the West Bowlegs prospect in Oklahoma. Union Jack holds a 45% working interest in Andrews-1-17.
Operator Reach Oil & Gas says groundworks have been completed and a drilling contract has been signed with a local contractor. Drilling is expected to take approximately 10 days to a depth of 5,200 ft. If successful, completion time is expected to be short at approx. 8 days, including perforating and flow-back.
The target is the Hunton Limestone, one of the main hydrocarbon reservoirs in Oklahoma. Hunton is unconformably overlain by the main oil-prone source rock, the Woodford Shale, and is in an excellent position for the migration of oil. West Bowlegs is associated with a remnant of the Hunton Limestone and is expected to be at original pressure.
Primary oil recovery is expected to be by solution gas drive, with any gas recovered to surface being sold into the local network.
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Union Jack has set a spud date for its new Andrews-1-17 discovery well, a month after it announced the farm-in agreement with Reach Oil & Gas for a 45% interest in the project aiming to assess the West Bowlegs prospect in Oklahoma.
Andrews-1 is estimated to have a 75% chance of success with very quick completion time. If proven successful, the well could be in production within 1 month from spudding. The cost of the well net to Union Jack is estimated at approx. US$516k, to be paid from existing cash reserves.
The high chance of success comes from similar low-cost wells in the area that produce within the range of 150 boe and 200,000 cubic feet of gas per day, with a quick ROI of 6 months. The target for the well is the Hunton Limestone, one of the main hydrocarbon reservoirs in Oklahoma.
Oil-filled porosity is encountered within a basal Oolite limestone formation in wells within a mile of the first drill location for Andrews-1-17. These discoveries are believed to constitute the main reservoir within West Bowlegs. UJO recently acquired a 3D seismic covering the area and has already identified more drill-ready prospects.
Union Jack's decision to diversify its UK portfolio with US assets is in line with its strategy of acquiring significant interest in projects with quick expected development times, capable of adding significant cashflow. The partnership with Reach will open up further opportunities to access more similar prospects in Oklahoma.
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