OK, let’s get the juices flowing and look at just what shareholders could see for over the next couple of months from the US.
The first expected piece of news will likely be the commencement of the site construction at the Andrews-1 well, followed by spudding. Drilling to a depth of 5200 feet, taking only an approximate ten-day drilling period the completion time is swift; approximately eight days including perforating and flow-back if successful. We have been told the chance of success is estimated at 75% and the well is in one of the main hydrocarbon reservoirs in Oklahoma, the proven Hunton Limestone.
So, assuming spudding goes ahead according to plans, we are potentially just 6-8 weeks away from production!
News expected during this time could be mobilisation, spudding, successful flow and then the actual stabilised rates. At least 4 potential RNS’s by the end of next month/early May.
What makes this well more exciting is that an oil well like this can easily turn into an oil field. Cost for drilling and completion of the Andrews-1 well is estimated to be approximately $500k (£400k) net to Union Jack and the return, based on the company’s 45% of a potential 200 bopd, would be in the region of $200k per month which, OK, maybe best case scenario of 200 bopd and 30 days at 90 bopd x $75, so £160,000 per month, just 3 months solid production and that well is paid for. It could be the company run to a second well and a third. The sky is the limit here in my opinion and it wouldn’t be long until the revenues from Wressle are equalled and likely surpassed.
Of course, in between this we could see any number of updates on other projects. This move into the United States I am sure will be the catalyst that will make Union Jack Oil one of the more exciting oil investments on AIM!
