Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF) has reported a 'disappointing and unexpected' result from its latest well in central Oklahoma failed to produce commercial quantities of oil, despite initial signs of promise.
The AIM-listed company, which focuses on onshore oil and gas projects in the UK and the US, said its Sark well reached a total depth of 5,391 feet, with logs indicating potential hydrocarbons in the Prue sandstone layer.
However, after a 30-day production test, the site did not yield commercially viable results.
Post-drilling analysis suggested that while the well encountered a valid geological structure, the trap that would have held oil in place had been breached, preventing accumulation.
David Bramhill, Union Jack’s executive chairman, said: “Following the drilling of four successful discoveries in Oklahoma to date, this is an unexpected and disappointing result.
"Our US interests, with income from Moccasin, the Andrews Field and mineral royalties, continue to be profitable and we look forward to continuing our Oklahoma drilling programme.”
Union Jack holds a 53% stake in the Sark project. The company’s portfolio in the US continues to generate income, providing support for ongoing exploration despite the setback.