Credit where credit is due and whilst the share price in no way reflects the significant value being created in the USA at the moment but as and when it does, as night follows day, that value will be reflected to those wise enough to be shareholders. |
 From share price ANGEL today:-
Union Jack Oil* (UJO LN) 12.7p, Market Cap £13.5m: Moccasin testing update
Union Jack announced the primary Wilcox formation at the Moccasin 1-13 well (45% WI) recorded open hole flow rates equating to 621b/d, which has since been choked back to over 140b/d of 32-degree API crude oil.
The installation of permanent production facilities, comprising oil storage tanks, separator and flowlines is complete and oil sales have commenced from the Moccasin 1-13 well, which is located onshore Oklahoma.
The Company confirmed the trapping of hydrocarbons in multiple zones within the structure and plans to perforate and test two other zones, the Red Fork and the Bartlesville Sandstones, in due course.
Union Jack and its JV partner Reach are planning to potentially drill a high impact well in 2Q25 on a further 3D seismic supported structure that appears very similar to the Moccasin feature.
Union Jack is up in early trading after releasing further information on the Moccasin discovery well, which has produced light oil at higher initial flow rates than had been expected pre-drill.
The Company commented that the success at Moccasin has opened a raft of new material opportunities in Oklahoma, with a high impact well being planned that will be funded from existing cash resources.
We look forward to reporting further results on completion of testing from the Moccasin well, which is expected to provide material revenues going forward to add to the existing cashflow coming from the US assets.
We anticipate further growth in the US portfolio and think that investing cash on the balance sheet into low-risk near-term US drilling opportunities for production and cash flow growth complements Union Jack’s existing profitable onshore UK production and development interests.
*SP Angel acts as Nomad & Corporate Broker to Union Jack Oil |
I think they will in the Spring re-shuffle.
It looks like we are going to pump alot more cash into Ukraine, and into Nato / our armed forces. They have screwed virtually everybody in the working UK population, so where is the cash going to come from?
I bet mad milband will go, along with his crazy net zero car crash. |
Just need the UK to get rid of mad miliband next |
Well, here's hoping this well is the first of many above average hits from the US exploration portfolio. A few of these and Taylor will be forgotten about. It's the cost of doing business. A few lower than expected outcomes, then a nice little earner.Cash |
well I think its a great result!
I dont expect the market to react to strongly, purely because we have had great results before that came to nothing.
Next set of Gov. data will be key |
LAWPerhaps compare these to the numbers on Andrew and Taylor. A Higher pressure is good, but it's the rate of pressure decline which is the ultimate determinant of value.Taylor produced 2bpd and 5 bpd of water according to the ok website... Moccasin and any follow ons will need to continue to flow well to cover for any under performance at Andrew and possibly Taylor...The lack of shareprice movement on this positive update suggests the Jury is still out on whether the US venture will make a decent return the investment committed. If the well is still flowing significantly north of 100bopd in a month or two with minimal depletion then it might well be the one that bails it out... |
Bramhill must have insisted on buying 384 shares at 13p so he can show the price has gone up. :) |
the ok.gov spreadsheet shows
PSI = 900
Shut_in_Pressure = 300
I have no idea if these numbers are good, bad or normal, perhaps someone else knows? |
A little mathematics needed which will still be a guess but at least sensible. |
This does look promising. The key to the value though is not individual hourly or day flow rates as such, it's the longevity of the rate. This in turn is a usually a function of pressure in the reservoir, and at what rate it declines, this obviously takes time to measure, and is usually but not always a function of the volume of the reservoir.As an analogy think drilling a hole in a 3ft deep hot tub vs drilling the same sized hole in a 3ft deep swimming pool. Both have the same pressure initially, but the outlet pressure of the hot tub falls more quickly because the depth of water (the pressure head) drops faster because you're producing a larger proportion of the total volume over any given time period. |
if Moccasin is as successful as we all hope, that's 55% to Reach which is a lot of revenue - this could accelerate their drilling program, including Diana etc, the next few months should be very interesting. |
45%...you beauty! |
• The primary objective, the 1st Wilcox formation was perforated, tested and confirmed as a significant oil producer, free flowing under natural pressure, with no formation water present and minimal associated gas
• Initial open hole average flow rate over several test periods and a number of days was recorded at 25.88 barrels of oil per hour equating to 621 barrels of oil per day
• Moccasin is currently being evaluated under highly restricted flow using various choke sizes and has produced over 140 barrels per day of light crude oil with an API of 32 degrees, under a 13/64 choke (approximately 0.2 of an inch). During this evaluation phase, Moccasin will be further restricted with a smaller choke to monitor pressure to determine the production rate for maximum ultimate oil recovery
• The installation of permanent production facilities, comprising oil storage tanks, separator and flowlines is complete and oil sales have commenced
• Moccasin confirms the trapping of hydrocarbons in multiple zones within the structure
• Two other zones, the Red Fork and the Bartlesville Sandstones to be perforated and evaluated in due course
• Moccasin drill and completion costs have already been funded from the Company's cash resources |
Must be a buy now with this news Could double from here at least by Christmas if we get success in the next drill on this scale and the price of oil keeps firm |
Great result!
Well done big Dave and team.
UJO need more of these Wilcox prospects.
Cash |
sp held up very well considering that sell |
451k sell just shown |
Kim-clay that is absolutely spot on |
I think that's right. Perhaps they realise that they need to understand how the well will perform over the medium term before releasing any flow rates. They quoted Andrew as flowing at 184bopd at one point, clearly that was a bit premature as it wasn't very long before it was down to less than 10. Lessons learned perhaps? whilst shareholders are keen for information, perhaps it's better that it's a more reliable assessment. |
thx Kim. It looks as though Moccasin is the best of the 4 drills so far, although we wont have a clear picture for 2 or 3 months imo. Diana has not yet appeared on any list |
LAW.The equivalent numbers for Andrew from the same ok.gov spreadsheet, although not sure what dates these numbers relate to.A1: 20bpd 50mcf - pumping- shut in pressure 70psiA2: 35bpd 150mcf -flowing- shut in pressure 300psi.Also info on Taylor-1 from the same sheet: Drilling finished 12th NovCompleted 2nd DecFirst Prod 11th Dec2bpd 44 API - Pumping - shut in pressure 140psi.Make of that what you will. |
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