LONDON (ShareCast) - (Sharecast News) - UK and US-focussed hydrocarbon explorer and producer Union Jack Oil announced the spudding of the Moccasin 1-13 well in Seminole County, Oklahoma on Tuesday, and provided an update on the completion programme for the Taylor 1-16 well, also in Oklahoma.
The AIM-traded company holds a 45% working interest in both wells.

It said the Moccasin 1-13 well was targeting an untested 3D seismic-supported structure in the Hunton and Wilcox formations, with secondary targets in Pennsylvanian Channel Sands and the Base Pennsylvanian Unconformity Sand.

The structure, linked to the regional Wilzetta Fault, lies near proven oilfields such as North-East Shawnee and North-West Redhill.

Reach Oil and Gas Company, the operator, had assessed a high likelihood of recoverable hydrocarbons in the Base Pennsylvanian Sands and a 50% chance of success in other zones.

Moccasin would be drilled to a depth of 5,500 feet, with costs already covered by Union Jack's cash resources.

At the Taylor 1-16 well, drilled to a depth of 4,577 feet, three potential production zones had been identified - Hunton, Misener, and Cromwell.

Completion and testing were underway, with the Hunton zone already perforated.

Initial results indicated light oil with no water, and a vacuum pump was expected on-site within two weeks to enhance flow rates.

Testing of the Misener zone was set to begin shortly, with plans to co-mingle production from all three reservoirs.

All costs associated with Taylor's drilling and completion had also been funded from existing resources.

"We look forward keenly to the drilling results from the Moccasin well that, if successful, has the potential to be significant for Union Jack and its future," said executive chairman David Bramhill.

"I am pleased to report that the company remains in a robust financial position having paid all major outgoings including drilling and completion costs for its current US activities.

"We continue to generate material revenues in the UK from our flagship project at Wressle - Union Jack 40% - that is awaiting approvals to proceed with the next stage of development."

Bramhill said those revenues were expected to be bolstered in the near future from Keddington - Union Jack 55% - by the expected restart in early 2025.

"Cash generation in the UK is complemented by our entry into the US which we announced in early 2024, with cash flow from the two Andrews' wells discoveries - Union Jack 45% - plus additional revenues from our US mineral royalty portfolio that provides a constant and pleasing return on our investment.

"Notably, we have meaningful interests in all our principal projects that we believe will assist in being able to deliver on our stated growth strategies in both the UK and the US.

"We look forward to reporting in due course on the drilling results from the Moccasin well and following completion, production rates from Taylor."

At 1221 GMT, shares in Union Jack Oil were up 5.62% at 9.77p.

Reporting by Josh White for Sharecast.com.

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