Shares in Union Jack Oil PLC (AIM:UJO, OTCQB:UJOGF, FRA:1UJ0) fell 9% to 3.75p after it said its Crossroads well in Garvin County, Oklahoma, has been deemed non-commercial following testing, marking a setback for the AIM-listed company’s US drilling interests.
The company, which holds a 43% interest in the well, said Crossroads encountered hydrocarbon shows at several levels from the Hoxbar down to the Basal McLish intervals.
Four intervals considered to have production potential were perforated and tested, but the results were not enough to support commercial development.
The well will now be plugged and abandoned in due course, Union Jack said.
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