Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) shares were rising in Tuesday's early deals after it told investors that it completed the drilling of the Taylor 1-16 well, in Seminole County, Oklahoma, and the well is confirmed to be hydrocarbon-bearing.
Taylor 1-16 was drilled to a total depth of 4,577 feet, and encountered the Hunton Limestone zone at a depth of 4,168 feet. This interval is confirmed as hydrocarbon-bearing, and, according to initial analysis, it is highly porous and permeable.
The well also encountered other potential intervals, in the Cromwell Sand and Misener Sand formations which will be evaluated at a later date.
Production casing has been installed, and the operator, Reach Oil and Gas, is now preparing the completion programme, expected to begin in early December.
“We are very encouraged by both the reservoir quality and hydrocarbon indications we have encountered in the Hunton interval, the main objective,” executive chair David Bramhill said in a statement.
"In addition, the discovery of further intervals in the Cromwell and Misener Sands offer additional future potential. Both zones also produce well in the immediate area.
Taylor 1-16 is 45% owned by Union Jack.
Looking back to the UK business, meanwhile, Bramhill added: “the company is pleased to report cumulative revenues of over US$22,000,000 from Wressle, net to its 40% interest, where the view of the management is that the most productive phase of development lies ahead.
"Also in the UK, ongoing site improvements to the Keddington production asset, in which Union Jack holds a 55% interest, are progressing well and production is expected to commence in the near future.”
Union Jack shares gained around 9% in early deals to change hands at 10.61p each.