What fantastic news from Union Jack Oil today with the confirmation that the Andrews-1-17 has been proven commercial. What an fantastic decision also to diversify from the fast declining future of UK oil and gas.
One has to be impressed how quickly this whole operation has taken from conception to production. Who would have believed the company are already selling the oil? I am sure shareholders and the market were only expecting confirmation of flow and ongoing plans.
In addition, it looks like the gas will soon be connected and sold into the grid too.
But……….. what is the biggest piece of news accompanying the success of this first well for the company is the planning phase underway to drill the next one.
Assuming the Andrews-1 flows 150 bopd and Union Jack receive their 67.5 barrels, on an $80 price per barrel, that equates to approximately $1.9m per annum, so with the Andrews-2 joining the fray, almost $4m plus of course the gas! WOW!
It has taken just 8 weeks to engage the contractor, spud, complete and be in production. On that basis, throw in an extra month to get things going and we could see this second well producing potentially by the end of July, time for another 1 or two even by Xmas💪
I wonder how much gas there is and how much revenue this will add to the total?
This week also sees the Sidoti event where Union Jack’s commercial advisor Zac Philips will be presenting on behalf of the company, increasing our presence in the US with some fresh PR.
One can only feel confident now on the future of Union jack’s US venture and the now more obvious correct decision by David Bramhill in seeing the increasing dislike for fossil fuels in the UK.
