The week ahead will see the spudding of Union Jack’s Andrews-1 well in Oklahoma. An exciting time for the company in its latest strategy to diversify out of the highly restrictive UK oil sector. It has been refreshingly different for shareholders to see a plan come to fruition so quickly, with this venture only announced months ago and everything has advanced from a plan, to a well site, to a drilling operation and all this in less than 3 months.
There’s no doubt entering the US has been a very wise move by the board and one I feel will not only return superior revenues to present UK ‘working’ assets but possibly for the longer term success of the company.
When you look at what were originally exciting prospects in the onshore portfolio, each has been beset with problems and all, in my opinion, down to the operators the company have invested in.
West Newton, planning all in hand, a substantial asset that has suffered with funding issues between Rathlin Energy and Reabold Resources, extremely poor operational decisions when drilling and of course, the planning issues. Then Biscathorpe, after being granted planning permission following an appeal, after a year long wait, it is now subject to a legal challenge. Keddington is again awaiting the operator as is Wressle’s Penistone Flags. No wonder Union Jack is investing in the United States. By the time something gets going over here, there will probably be two or three producing Oklahoma wells๐
