Union Jack Oil PLC (AIM:UJO) has made another US investment, buying a package of royalties in significant shale regions.
In a statement, UJO said it has bought a royalties package comprising producing wells across the Bakken shale in North Dakota and Permian and Eagle Ford Shales in Texas.
At a cost of US$168,000 and funded from existing cash reserves, the deal was brokered by US partner Reach Oil & Gas.
"We are pleased to announce three additional royalties acquisitions, further expanding our cash-generating assets of producing properties in the USA,” executive chair David Bramhill said in a statement.
He added: "To date, Union Jack holds interests in 165 producing wells in three prolific basins in Texas and North Dakota.
"We are particularly pleased to have purchased the Bakken Shale package which holds material upside.
"The intent of the company is to continue to build a quality portfolio of remunerative USA assets. The royalties are held in perpetuity and the expected economic life of these assets is more than 26 years with a current Interna rate of return in excess of 20%."
Earlier this year, UJO announced its move into the United States with acquisitions in Oklahoma, and, yesterday, the company confirmed it is close to spudding its first Oklahoma well, Andrews-1-17.