Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) told investors that oil was recovered during 'swabbing' at its 60%-owned Sark well in central Oklahoma, USA.
The well was drilled to a total depth of 5,391 feet, and it cut the Prue interval between 4,586 and 4,600 feet. This zone was confirmed as hydrocarbon-bearing and was subsequently perforated.
Temporary production facilities are being installed ahead of a 30-day test programme, which will begin in October.
Results from the testing will be reported after completion.
In London, stockbroker SP Angel described it as a positive update, from what is the first of a three-well campaign (that was already derisked by the prior Moccasin well result).
The broker highlights that Union Jack has effectively entered a phase of sustained drilling activity, and results are expected to "set the tone" from here, with potential for a rerating higher should the good news continue.
"The new US drilling targets can be brought onstream quickly and pay out in under one year at $65/bb on success, with the wells representing significant potential resource and financial upside for investors," SP Angel said.