What a fantastic RNS update published this morning by Union Jack Oil!
To hear the Andrews 2-17 well is free flowing with rates up to 183 bopd under test conditions on a restricted choke is something else. With a 14/64ths choke, this would equate to over 800 bopd. Let me say that again, OVER 800 BARRELS OF OIL PER DAY! FREE FLOWING! This makes Wressle look insignificant when Union Jack’s share of this would be approx 350 barrels per day equating to over $10,000,000 per anmum๐
But hey, let’s assume they keep it restricted to just 200 bopd, it would still offer up almost $2,500,000 yearly! Nice to see the gas is being sold from both wells too and with over 6000 barrels of oil already sold from the Andrews 1-17, it would certainly seem the Boards decision to move into the US is a major success and one that will certainly take the company to a new level.
The announcement of two additional wells to be drilled was unexpected but shows just how fast Union Jack and their partners Reach Oil & Gas are powering ahead.
Both the Taylor and Moccasin wells offer potentially huge returns if successful, they would ensure David Bramhill’s desire to see the company with its mid-tier status is achieved. I do believe this will be an extremely exciting time for shareholders with multiple drilling events, additional collaborations,ย projects like the secondary production which also seems to be underway with water from the Andrews 1 already being piped to the Coker injection well.
In just 8 months since investors were informed about the US ventures, Union Jack has added two commercial wells to its portfolio, is selling both oil and gas, a substantial range of Mineral Royalties with major oilers in the US that are generating revenues and have commenced the rejuvenation of two low production wells.
With the two new wells to be drilled, I believe wholeheartedly that this company is severely undervalued and expect the share price to start re-rating.
The UK oil and gas sector is suffering an abysmal time with just about everything going against it. Concentrating on the US onshore oil is the way forward for now and I do think Wressle revenues are very close to being exceeded with the Andrews wells alone.
Union Jack is outshining its peers, it deserves far more recognition for that!
