LONDON: Union Jack Oil plc, an onshore hydrocarbon producer with interests in the UK and USA, has announced the acquisition of a 45% working interest in the Rogers Enhanced Oil Recovery Project in Seminole County, Oklahoma.

The $105,000 deal with Reach Oil & Gas Company Inc includes two production wells and one injector well, mirroring the company’s interest in the adjacent West Bowlegs area.

The Rogers Project, slated to begin in July 2024, involves a capital expenditure of approximately $133,000, funded entirely by Union Jack’s existing cash reserves. The operator forecasts that the project could yield an additional 124,000 barrels of oil from the Rogers and S&M wells, with projected gross revenues of around $7.5 million at current oil prices, an internal rate of return nearing 80%, and a payback period of roughly 18 months after capital expenditure.

Plans include enhancing the output of the two existing wells and utilizing a third well for water injection to increase reservoir pressure, thereby boosting oil and gas production. This strategic move positions Union Jack Oil for significant revenue growth and operational expansion in the US market.

David Bramhill, Executive Chairman, commented: “I am delighted to announce Union Jack’s further expansion in Oklahoma, alongside our partner Reach, with our acquisition of a 45% WI in the Rogers Project.

“Noting the low capital cost associated with this new venture, we see strong potential for incremental production gains and timely payback on our investment.

“The Rogers Project offers an excellent strategic and locational fit with Union Jack’s existing participation at the Andrews 1-17 well, helping to provide operational synergies and increase production and revenue by building critical mass in the vicinity of this existing commercial producer.

“I look forward to updating the market on stabilised production rates from Andrews 1-17 in due course, once a permanent electricity supply and upgraded pump jack have been installed. These site upgrades are expected to materially enhance current flow rates, with up to 100 barrels per day of high quality (46 º API gravity) oil having already been recorded at Andrews 1-17 during May 2024.

“Planning for the follow-on Andrews 2-17 well, also targeting Oklahoma’s prolific Hunton limestone, continues prior to anticipated spudding over the coming weeks.”

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