11th Mar 2024 14:55
(Alliance News) - Oil and gas explorer Union Jack Oil PLC on Monday noted the operator of the Andrews-1-17 well in Oklahoma, US has signed a drilling contract with a local contractor.
Reach Oil & Gas Co Inc informed Union Jack that a drilling contract was inked, and groundworks have been completed. The spud date will "on or around" next week Wednesday. UK- and US-focused Union Jack holds a 45% working interest in the asset.
The venture hopes to test the West Bowlegs prospect in Seminole County, targeting the Hunton Limestone, one of Oklahoma's main hydrocarbon reservoirs.
The operator Reach Oil & Gas deems the well as having a 75% geological chance of success.
There will be a roughly 10-day drilling period, Union Jack noted, to a depth of 5,200 feet.
The completion time is estimated to be eight days including perforating and flow-back.
Executive Chair David Bramhill said: "The Andrews-1-17 well has a high chance of success and if proven commercial could be in production within literally weeks from spudding. Similar low-cost development wells nearby, typically produce initially at approximately 150 barrels of oil and over 200 thousand cubic feet of gas per day and can provide rapid pay-back within six months."
Shares in Union Jack Oil were down 2.1% at 16.65 pence each in London on Monday afternoon.
By Elijah Dale, Alliance News reporter
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