Union Jack Oil further expands footprint in Oklahoma

13th Feb 2024 09:18

(Sharecast News) - US and UK-focused onshore oil explorer Union Jack Oil has signed two further farm-in agreements with Reach Oil & Gas for the Wilzetta Fault oilfields in central Oklahoma, which is thought to have substantial reserves.

Following two other agreements in Texas and Oklahoma signed with Reach over the past month, the AIM-listed company said it is also acquiring a 75% working interest in a well planned to be drilled in the third quarter to test the Footwall Fold Prospect at the Wilzetta Fault.

The second agreement is to acquire a 37.5% working interest in a 2D and 3D seismic acquisition programme to identify additional drillable prospects along the Wilzetta Fault.

"I am pleased to be able to bring another two, highly prospective farm-in projects to the company's Oklahoma, USA, drilling and mineral royalty portfolio," said Union Jack's executive chair David Bramhill.

"During late 2023 and early 2024, the company assembled an initial balanced collection of value adding assets, comprising three cash yielding mineral royalties, holding attractive upside potential, and a quality portfolio of near-term, exploration, drilling and seismic acquisition programmes that we believe have an excellent chance of success."

Meanwhile, Reach's president Jim McKenny said that the Wilzetta Fault is a "proven oil producing area with potential for the discovery of substantial reserves in a complex structural setting".

The stock was up nearly 3% at 18p by 1030 GMT.