This is super news for the company and shareholders as the first well is now to be spudded within the next two weeks. It has only been 9 weeks since we heard about Union Jack’s entry into the United States and already we have cash generating mineral royalties, an imminent drill and other interests building.
After the budget news on the extension of the tax on oil companies, which has a big effect on this company, this is no doubt an extremely wise move and one that looks set to return revenues in a very short period.
The Andrews-1 well has progressed quickly from the announcement of an interest to a spud date, something one could only dream about in the UK and if it spuds on time on the 20th March, we could in fairness expect it to be actually flowing in the second week of April. If successful, with the overall cost for drilling and completion of the Andrews-1 well estimated to be approximately US$516,000, I see no reason not to drill a second, a third and more. Union Jack’s first oil field. Now wouldn’t that be something?
The chance of success being estimated at 75%, an experienced joint venture partner and the incredibly short time between drilling and production means progress in the United States could surprise us all.
Hopefully we will see some market interest in this great little company when this well is spud and how serious the company are to progress their status to mid tier, which I feel is something achievable now.
