Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) told investors that drilling operations have begun for the Moccasin 1-13 well in Seminole County, Oklahoma.
The company holds a 45% working interest in the project, which targets hydrocarbons across multiple zones supported by 3D seismic data. It is intended to have a target depth of 5,500 feet.
"We look forward keenly to the drilling results from the Moccasin well that, if successful, has the potential to be significant for Union Jack and its future,” executive chair David Bramhill said in a statement.
The project is fully funded through Union Jack’s existing cash reserves.
Union Jack also updated on its Taylor 1-16 well, also in Oklahoma, where testing is underway across three potential production zones.
Initial results from the deepest zone of the three, the Hunton formation, have yielded light oil and the company said further testing is planned for the next zone, Misener.
It is anticipating that the well will be delivered with co-mingled production from all three of the well’s reservoir zones.
Bramhill, meanwhile, highlighted the continuing support coming from the firm’s onshore UK production, which is providing cashflows for investment.
“The company remains in a robust financial position having paid all major outgoings including drilling and completion costs for its current USA activities,” he highlighted.
"We continue to generate material revenues in the UK from our flagship project at Wressle (Union Jack 40%) that is awaiting approvals to proceed with the next stage of development. These revenues are expected to be bolstered in the near future from Keddington (Union Jack 55%) by the expected restart in early 2025.
Bramhill added: "Cash generation in the UK is complemented by our entry into the USA which we announced in early 2024, with cash flow from the two Andrews' wells discoveries (Union Jack 45%), plus additional revenues from our US Mineral royalty portfolio that provides a constant and pleasing return on our investment.
"Notably, we have meaningful interests in all our principal projects that we believe will assist in being able to deliver on our stated growth strategies in both the UK and USA.”