25 February 2025
This
announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) 596/201
as
it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed
in
accordance with the Company's obligations under Article 17 of
MAR.
Union Jack Oil plc
("Union Jack" or the
"Company")
Moccasin 1-13 Well, Pottawatomie County,
Oklahoma, USA Update
Union Jack Oil plc (AIM: UJO, OTCQB: UJOGF) a
USA and UK focused onshore hydrocarbon production, development,
exploration and investment company is pleased to announce, further
to the RNS dated 29 January 2025, a positive update on the testing
of the Moccasin 1-13 well ("Moccasin"), located in Pottawatomie
County, Oklahoma, USA. Union Jack holds a 45% working interest in
this well. Reach Oil & Gas Company Inc ("Reach"), the
Operator, holds the remaining 55% working interest.
• Moccasin
has been declared a commercial discovery
• Moccasin
was drilled to a Total Depth of 5,690 feet to test a dip and fault
closed structure, mapped from 3D seismic, downthrown on the west
side of the Wilzetta fault
• Several
intervals were highlighted on electric logs as hydrocarbon bearing
following evaluation
• The
primary target was perforated, tested and confirmed as a
significant oil producer with no formation water present
• Initial
oil flows and log interpretation indicate excellent reservoir
permeability with oil recovery rates of over 40% to be
expected
• Light
oil with minimal associated gas recovered
• The
installation of permanent production facilities has
commenced
• Moccasin
confirms the trapping of hydrocarbons in multiple zones within the
structure
• Test
programme ongoing with two other zones to be perforated and
evaluated in due course
• Moccasin
drill and completion costs have already been funded from the
Company's cash resources
Moccasin was an untested 3D seismic supported
structural prospect with secondary targets in the Pennsylvanian
Sands. The Moccasin structure is a compressive feature, associated
with the regional Wilzetta Fault. This strike-slip fault was active
through the Ordovician to early Carboniferous periods and is
responsible for several large oil accumulations. The Woodford
Shale, the main source for light oil across the region is present
within the Moccasin structure and between the primary reservoir
targets. In the area of the Moccasin well, a deviation in the fault
has caused compressive forces forming numerous dome and fault
structures which have led to proven oilfields, such as the adjacent
productive North-East Shawnee and North-West Redhill
fields.
David
Bramhill, Executive Chairman of Union Jack,
commented: "Moccasin has more than validated
Management's confidence in its success, being a further commercial
discovery in Oklahoma for Union Jack. Testing at Moccasin is
ongoing, however, Union Jack and Reach are sufficiently confident
of the results to date and the Joint Venture has commenced the
installation of permanent production facilities.
"Although further testing is required, early
indications suggest that Moccasin could provide material cash-flow
going forward, contributing to the expansion of revenues from the
Andrews Field and Mineral royalty portfolio in the USA, a country
that offers fair, attractive and balanced fiscal terms.
"We are extremely pleased with this discovery
as it has now confirmed our previous technical assumptions and a
proof of concept that oil occurs in structures to the west of the
prolific Wilzetta fault.
"Progress in Oklahoma by the Company is highly
satisfactory, emphasising the positivity and encouragement given to
industry entrepreneurs.
"We look forward to reporting further results
from Moccasin on completion of testing and the installation of
permanent production facilities, expected during Q1
2025."
Miles Newman,
Chairman of Reach, commented: "We're
delighted to see a nice well at Moccasin.
"The Reach team at our office in
Oklahoma City has been working on the geology and geophysics of
this area for many years and they're especially pleased to deliver
a discovery at Moccasin, safely and within budget."
For further
information, please contact:
Union Jack Oil
plc
info@unionjackoil.com
David Bramhill
SP Angel
Corporate Finance LLP
+44 (0)20 3470 0470
Nominated
Adviser and Joint Broker
Matthew Johnson
Richard Hail
Jen Clarke
Shore Capital
+44 (0)20 7408
4090
Joint
Broker
Toby Gibbs
Harry Davies-Bell
Gneiss Energy
Limited
+44
(0)20 9263 3983
Financial
Adviser
Jon Fitzpatrick
Paul Weidman
Harbor Access
+1 (475) 477 9402
USA Investor
Relations
Jonathan Paterson