Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) has reported positive well testing results from the Moccasin 1-13 well, in Oklahoma, where it saw rates of up to 621 barrels of oil per day.
The well, 45%-owned by Union Jack, has been confirmed as a producer in the ‘1st Wilcox’ formation (its primary objective) with the well flowing naturally and with no formation water.
It recorded an open hole equivalent rate of 621 bopd (25.88 barrels per hour), and was put into production – currently running at over 140 bopd under restricted conditions to monitor pressure and optimise ultimate recovery volumes.
Production facilities have now been installed and the oil sales have begun.
The well’s other two zones, Red Fork and the Bartlesville, will be perforated and evaluated in due course, Union Jack said.
Meanwhile, the UK group and project operator Reach Oil & Gas are now planning to test another target, which appears ‘very similar’ to Moccasin in seismic data.
It's slated to be drilled in the second quarter of the year, funded by the existing cash resources.
"We are of course delighted at this success at Moccasin which has opened a raft of new and compelling opportunities for the company in Oklahoma,” chief executive David Bramhill said in a statement.
He added: “The flow rates currently being seen from Moccasin, subject to further testing, are expected to provide material revenues to Union Jack going forward, adding to the financial contributions from the Andrews Field and the S&M well, part of our Rogers secondary recovery project, where a modicum of gas is now being produced and sold to market and the consistent monthly income from the company’s mineral royalty portfolio.”