Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) told investors that its Andrews 1-17 well, in Oklahoma, has been declared a commercial discovery.
The well has produced 6,460 barrels of high-quality, ultra-light oil and 6.3 million cubic feet of gas since it commenced restricted and periodic test production in late May.
In addition, the Andrews 2-17 well, which was completed in early August, has also been declared a commercial discovery. Since 7 August 2024, the well has produced 544 barrels of oil and 1.9 million cubic feet of gas.
Both wells are now connected to a local gas pipeline, with products being sold to the market.
Union Jack Oil noted that it has secured a 45% interest in the Taylor and Moccasin wells, where drilling is scheduled to begin in the fourth quarter of this year.
These wells are targeting previously untested resources and will be drilled back-to-back.
Drilling is also planned for the Diana-1 well, subsequently following Taylor and Moccasin.
The company’s USA operations, which began in early 2024, have rapidly progressed and are already generating cash flow, the company highlighted.
Its expanding asset base in Oklahoma includes also the Rogers enhanced oil recovery project, and the East Shawnee exploration project where plans for 3D seismic have been designed.
Union Jack’s directors believe the balanced portfolio assembled in Oklahoma, over a short period of time, represents excellent progress by any standard.
"Obviously I am delighted at the initial success and significant progress being made in the USA alongside our partners,” executive chair David Bramhill said in a statement.
"It is difficult to believe that our entry into North America at the start of the year would yield such material returns in such a short period of time.
"The hydrocarbon opportunities in Oklahoma are considerable and we look forward to drilling the Taylor and Moccasin wells during the fourth quarter, followed by the Diana-1 well, all of which hold considerable upside on success.”
Bramhill added: “We remain committed to all of our current UK projects and are cautiously optimistic that fiscal and regulatory clarification from the new government will allow the owners and entrepreneurs in our industry to move forward and continue to provide reliable domestic production, supporting jobs and delivering tax revenues for many years to come."