In a week to 10 days, Union Jack, by my estimation, should be releasing the much awaited, post testing flow rates for the Andrews1-17 well in Oklahoma.
Whilst it was estimated to hopefully produce approximately 150-170 bopd based on similar wells in the vicinity, the feeling is that it will be considerably better than expected.
This feeling is down to the fact drilling was halted 600ft short of the predicted target, the rig dissembled and wire logging undertaken in quick succession, followed by confirmation by David Bramhill that the operation had been a major success. To state this in such a confident manner suggests there were indications of a considerable column of oil discovered and this could certainly now be the turning point for the company’s fortunes.
The share price is yet to reflect the potential offered in the US, but if the Andrews-1-17 well does flow above expectations, this will bring renewed interest from UK investors and likely put the company on the US investor radar.
With trading having now commenced on the OTCQB, investors across the pond can get their very own piece of a UK company exploring for oil in their home country.
Remember, there are relatively few shares in issue with no extra being allotted to the US market which in turn could generate a substantial shortage and hence a substantial rise.
The quarterly update, if on schedule, is also due to be released shortly, very possibly next week if we go by the date of the previous one. Hopefully we will see the £19,000,000 confirmed and a continuation of strong revenues from Wressle.
There has been quite some speculation over the rates recently so in my opinion, anything over 500 bopd will be considered capable of ensuring profitability for Union Jack and if that can be maintained for the rest of 2024, along with Keddington and whatever we see from Oklahoma, the company will be in an envious position amongst onshore oilers.
