The company signed two farm-in agreements with Reach Oil & Gas Company to acquire 75% interest in Wilzetta Drilling Project and 37.5% working interest in Wilzetta Fault Seismic Acquisition Programme

Union Jack-14thFeb

(Credit: John Ciccarelli, Bureau of Land Management California/ Flickr)

Union Jack Oil, a company specialising in onshore hydrocarbon production, development, and exploration in the UK and US, has entered into two additional farm-in agreements with Reach Oil & Gas Company, building upon the announcement made by the Company on 6 February 2024.

The initial agreement involves obtaining a 75% working interest in a well slated for drilling in Q3 2024. This well aims to assess the Footwall Fold Prospect within the Wilzetta Fault play (“the Prospect”) and an adjacent area of interest.

The subsequent agreement entails acquiring a 37.5% working interest in a 2D and 3D seismic acquisition programme. This programme aims to pinpoint additional drillable prospects along the Wilzetta Fault, situated in Pottawatomie and Lincoln Counties, Oklahoma, US.

Union Jack Oil has secured a 75% farm-in agreement for the exploration and drilling of the Footwall Fold Prospect within the Wilzetta Fault Play.

Here are the key details of this venture:

-The primary target area within the Wilzetta Fault zone is underpinned by a deeper structure, which will also be investigated by the inaugural high-impact well. Initial estimates suggest potential recoverable oil exceeding 200,000 barrels.

-The first well in the Wilzetta area is scheduled for drilling in Q3 2024, reaching a depth of 6,000 feet. The geological chance of success, as assessed by the operator (Reach), stands at approximately 35%.

The Wilzetta Fault region hosts numerous oilfields across central Oklahoma. Nearby analogical production includes the North-East Shawnee field, the West Bellmont field, and the Arlington Field, which collectively have yielded substantial oil production over the years.

Union Jack Oil has entered into a 37.5% farm-in agreement for a 2D and 3D seismic acquisition programme within the Wilzetta Fault Play. Here are the key details:

– Additional potential sites for structures along the Wilzetta Fault have been identified, supplementing those on the Wilzetta Fault Footwall Fold.

– Initially, the acquisition will focus on obtaining 2D seismic data to verify the presence of compressional structures at selected sites.

– Subsequently, a 3D seismic programme will be conducted at the most promising locations to further delineate potential drilling targets.

– Union Jack will contribute 50% of the total cost of the 2D and 3D programme, amounting to $280,000 net to Union Jack, in exchange for a 37.5% working interest in any prospects generated from the acquired data.

The expenses for both activities will be covered from existing cash resources.

The Wilzetta Fault Play represents a significant geological feature renowned for its prolific oil production throughout central Oklahoma.

Reach president Jim McKenny said: “The Wilzetta Fault is a proven oil producing area with potential for the discovery of substantial reserves in a complex structural setting.

“We are thrilled to have Union Jack as a partner in our expanding, seismic driven exploration programme.”

Gneiss Energy served as Financial Advisers on both transactions.