Union Jack Oil Share Discussion Threads

[currypasty] 13/2/2024 19:48

Union Jack Oil plc
@UnionJackOilplc
·
8m
#ujo

Super fast turnaround on these wells, looking forward to being able to report on our first US well, the Andrews-1

[currypasty] 13/2/2024 17:33

UJO are making rapid progress in its exciting expansion in the USA and today this news means that two more ‘highly prospective farm-in projects in the USA portfolio’ and are building a very impressive portfolio with an ‘excellent chance of success’.

With the programme about to kick on and the US asset base showing signs of high returns, shareholders must be pleased to see assets with such rapid payback potential which complements the UK portfolio. Indeed as a set of assets this seems to complement the UK portfolio pretty well and what is more has an excellent chance of a more than decent return.

[1347] 13/2/2024 13:30

law No it's not, private US companies don't tend to publish their results. I posted a link where you can register and order documents if you want to dig deeper although I don't know what you'll be able to get or what the charge would be.



PS: To view Entity Details there will be a $5.00 charge and you will need to click on VIEW ENTITY DETAILS button at the bottom of the page.

[cashandcard] 13/2/2024 13:27

thetoon,Agree with much of that. They were way too ambitious in that expedition called Hawk. Oklahoma is not like Colorado trying (but failing) to pioneer a shale play and Instead getting a consolation prize (the Jolly Ranch oilfield). This part of Oklahoma is well known, productive and plenty of data from other oilfields within the vicinity. A cursory look at the area around Shawnee - it's got drillpads and nodding donkeys spread widely. Lots of industry activity going on.Its notable that Wilzetta has potentially 3 different plays (Hunton limestone, Wilcox sands, thinner Pennsylvanian sands). Net cost of this well to UJO $1mln. For a 75% interest, it's one of those options they have to try.Cash

[cashandcard] 13/2/2024 12:56

No need to ramp.Let the drillbit do the talking.Cash

[1347] 13/2/2024 12:50

Cashcard, well we'll know in several months time whether it is or isn't a good deal, but I'm not interested in investing in tiddler shale companies in the USA so if you could all please ramp the share price higher I'll be on my way.

[cashandcard] 13/2/2024 11:17

Maxwell,There is the outside chance one of these small Oklahoma fields could be larger than 250-500k single well development.The way they've structured the deal, they can pick and choose which targets to participate in. Cash

[cashandcard] 13/2/2024 11:14

1347,Generally agree with the smallcap cliches.But look at this on its merits - what are they to do with all that cash? They have to spend it somewhere. Problem is they are not even operators at their cashcow Wressle let alone the other significant UK fields. The environment to invest in UKCS is not what it used to be with this greedy windfall tax. There is definitely better bang for buck elsewhere and with lower cost and risk. West Newton is going to be expensive, anything in the UK will be expensive and higher risk compared to the US. Frankly, they can do an eme and sit waiting for other companies to wake up from their slumber to start operations or they can actually put the incteasing cashpil to use in a low risk environment. I much prefer a company that is in control of its own destiny. I also prefer that they focus on growth, especially if they want to continue to pay a divi.Bramhill has had some howlers in the past (any of you who were in Hawk will know for sure) but this move into a prolific area with production all around - he has to be given a chance.Cash

[maxwell] 13/2/2024 09:56

Cash - yes small and active if you wish to potter about and stay afloat although no shear volume to improve company profile up to real volume production etc.. without a Bisc or WN tucked in & operating in my opinion. Waiting a decade & maybe dead in another.

[markfrankie] 13/2/2024 09:45

I suppose 1347 that we are all frustrated including UJO, unfortunately ujo not being operators in any of the UK projects We have to blame the operators and red tape instead!

[markfrankie] 13/2/2024 09:41

UJO taking some well thought out percentages In quick acting usa, not breaking the bank and positive

[markfrankie] 13/2/2024 09:38

RBD are indeed frightened of drilling their best asset WN, Having a great potential asset like that can kicking keeps them in a job 'potential' windfall for all concerned,
I do believe that all parties do actually have the right plan now to drill without damage to formation... but its risky I guess, RBD sat on their hands at the moment

[1347] 13/2/2024 09:36

cashcard - Exactly my point but you've missed the main thrust of it, which is that they've had 3 years to drill a relatively low cost side track at Keddington for which they already have permission, so there can be no excuses for that at all. These AIM companies are very adept at jam tomorrow stories, I see this as just another one. As I've already said, I'm not interested in investing in tiddler shale companies in the USA, but hey if others think it's a great deal then fill your boots as they say, a higher share price suits me just fine.

[cashandcard] 13/2/2024 09:30

Maxwell,What if West Newton does not go as planned like last time? Its an expensive endeavour to get wrong.Years back, Tony Booth of Encana/Encore fame said you need to have plenty of low risk shots with the drillbit to maximise chance of success for small companies.The US oil and gas patch is cookie cutter. Small but scalable.Cash

[cashandcard] 13/2/2024 09:26

Reabold are nothing like this. They were not production/cashflow orientated. Plus they were taking very expensive shots at marginal discoveries that others were passing up.Cash

[greypanther2] 13/2/2024 09:16

Having bought a few more UJO shares last week at 17.5p, today’s RNS is excellent news as it shows that we are making real progress in the USA with Reach, and by using our existing cash resources. So no borrowing or placing is required. To mind the Wilzetta prospect’s stated 35% Chance of Success (CoS) seems a bit low for a well defined, combined Hunton and Wilcox prospect which is covered by 3D seismic, when UJO gave a 75% CoS to the West Bowlegs prospect last week. The latter is also a Hunton prospect covered by 3D seismic. Quite interestingly, UJO has taken a 75% interest in Wilzetta, compared to only 45% at West Bowlegs, so some might query this aspect of the deal. I suspect that the estimated 35% CoS is actually for both targets being successful, so the odds of either the Hunton or the Wilcox working here is probably closer to 60%, IMO. The Wilzetta play has most of the factors required for success, and by that the source rock presence and its maturity, and the structural validity have already been demonstrated, so only the reservoir quality needs to be established in the two target horizons. Maybe the younger Pennsylvanian channel sands will also prove profitable if they are present here. Time will tell,of course, but we should know by Q3 2024. This is a heck of a lot quicker than it would be in the UK.

[maxwell] 13/2/2024 09:13

Part of SPANGEL,s brief this morning along with all the same etc.

However, it is the anticipated uptick in drilling and development activity in the UK at West Newton in 1H24 and Wressle in 2H24, which should provide investors with the greatest potential for value creation over the next 12M.

IE: not the USA in there eyes apparently - just scratching around for pockets of income which help with profitable turn over maybe after costs………

[archie222] 13/2/2024 09:11

Seem to remember Reabold saying something similar ...

[cashandcard] 13/2/2024 09:04

1347,Everything takes a million years to do in the UK, plus its very costly. The Labour government in waiting is ominous for oil and gas industry and there is always the local NIMBY problems for onshore drilling. The UK did not face the stupidity of the oil windfall taxes they face now, so it's blessing they did not plough more into the UK.The US is better in every way for oil and gas.Those prospects are small, but hookup and payback is quick. Plus they repeatable and scalable - the company won't go broke or suffer too much if one fails.Cash

[1347] 13/2/2024 08:57

16 Dec 2021

"Additional near-field exploration opportunities have been identified at Keddington South, (gross Mean Prospective Resources of circa 635,000 barrels of oil (350,000 barrels net to Union Jack) and the Louth Prospect (gross Mean Prospective Resources of circa 600,000 barrels of oil (circa 330,000 barrels net to Union Jack) which could be accessed from the existing well site in due course."

13 Feb 2024

"Main Wilzetta Fault zone target is underlain by a deeper structure that will also be tested with the first high-impact well with estimated recoverable oil in excess of 200,000 barrels."


So 3 years later they are farming in to a new drill in Oklahoma with just 200,000 barrels, less than what they could have drilled already from an existing site in the UK? Classic oh look over there I can see a rainbow.

[cashandcard] 13/2/2024 08:34

In my opinion, it's a reasonably safe bet - they are taking meaningful interests in areas that are known and prolific, with easy access to market and quality data. All the while not blowing tens of millions on a single prospect.The more shots they can have at good, oil prone targets, the better.Cash