This blog is all about Union Jack Oil, its UK and US assets and my perceived future for this AIM listed company. It is not sanctioned by Union Jack and has no association to the company or its representatives. I hope you find the content helpful in making any investment decision.
Union Jack Oil is a UK, AIM listed company with producing and ‘development awaiting’ assets in the United Kingdom and the United States. The company also owns mineral royalties in a number of Permian basin assets controlled by 4 major oil companies, Chevron, Occidental, XTO ( a subsidiary of Exxon Mobile) and COG (a subsidiary of ConocoPhillips)
These newly acquired royalties returned 10% within less than two months and the long term potential for substantial increases in these revenues as new wells are drilled offer an interesting and exciting future for the company and its shareholders.
Union Jack has also entered into a drilling program with Reach Oil & Gas.
Based in Oklahoma, with strong UK associations too, this is a company operated by one Mikes Newman, a man with a history of success in this region and I feel sure he is going to come good for Union jack in this new venture.
The Andrews-1 well which is due to be drilled in less than a few months is predicted to have a 75% chance of success (cos) and this is an impressive estimation. With an incredibly short time from commencement to completion, Union Jack could be receiving revenues from this first well before the summer, adding to their Wressle-1 well and Keddington wells in the UK.
A second well is also planned in Q3, to test the Footwall Fold Prospect in the Wilzetta Fault play. The prolific Wilzetta Fault plays are the site of numerous oilfields across central Oklahoma with nearby analogous production from the North-East Shawnee field, three miles south of the Prospect, which has produced more than 5,800,000 barrels of oil to date.
In the UK, Union Jack enjoys a strong revenue stream from its Wressle-1 well, topped up with a small addition from the Keddington well. The cash generated from these two assets will cover all of the costs to not only exploit their West Newton drill into potentially one of the largest gas discoveries in half a century, and drill the Penistone Flags as part of the Wressle expansion along with helping to fund the US drilling. The company could easily be looking at a gross income of approximately £3,000,000 per month with all of the above producing as expected.
So far, 2024 has seen a period of positive news flow which I believe is set to continue.