Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) told investors that the Moccasin 1-13 well, in Oklahoma, was successfully drilled down to a target depth of 5,690 feet.
The well, 45%-owned by Union Jack, was drilled on budget and it identified several zones of interest and test intervals.
Production casing has been run and cemented, and, testing is slated to start in the coming days (around 3 February).
Union Jack confirmed that all drilling and completion costs for the well have been fully funded from the company's cash resources.
"We look forward to reporting in due course on evaluation and test results from Moccasin and completion results from the Taylor 1-16 well drilled late 2024,” executive chair David Bramhill said in a statement.
Bramhill highlighted that Moccasin has “the potential to be of major importance for Union Jack”.
He added: "I am pleased to report that the company remains in a robust financial position having paid all major outgoings including drilling and completion costs for its current USA activities.
"We continue to generate material revenues in the UK from our flagship project at Wressle (Union Jack 40%), where approvals to proceed with the next stage of development are awaited.
“These revenues are expected to be boosted by Keddington production (Union Jack 55%), where restart is expected in early 2025.
"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 rate of return of over 31% on our investment.”