10th Jul 2024 11:28
(Alliance News) - Union Jack Oil PLC on Wednesday celebrated the spudding of the Andrews 2-17, a well in Oklahoma in which it holds a 45% working interest.
The oil and gas company, which is focused on onshore US and UK assets, was informed by Reach Oil & Gas Company Inc, which operates the well in Seminole County, Oklahoma.
Andrews 2-17, an offset well to Andrews 1-17, is expected to encounter a similar reservoir above the oil or water contact seen in that commercial discovery well. Upon success, it will share common production facilities with the Andrews 1-17, thereby lowering costs and optimising project economics.
Primary oil recovery is expected to be by solution gas drive with any gas recovered to surface being sold into the local network.
"The Andrews 2-17 well has a high chance of success and if proven commercial could be in production within weeks from spudding. Similar low-cost development wells nearby demonstrate that rapid pay-back can be achieved within six months," said Executive Chair David Bramhill.
"The rate of progress from generating a drillable prospect, obtaining permission to drill and spudding in Oklahoma is remarkable."
Shares in Union Jack Oil were trading 8.0% higher at 16.74 pence each in London on Wednesday morning.
By Holly Beveridge, Alliance News senior reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.