Union Jack Oil Share Discussion Threads

[bionicdog] 15/2/2024 18:42

Tell me about it. I have a very large cold badly insulated home.

[maxwell] 15/2/2024 18:38

Gas to heat my home is still very expensive???

[dan de lion] 15/2/2024 16:57

One fly in the ointment, wholesale price of gas is now as cheap as it has ever been!

I would assume that there is more value if they do gas to wire.

[markfrankie] 15/2/2024 16:27

16.666% WN or whatever is ample for UJO at the moment For Sure :-)

[cashandcard] 15/2/2024 15:34

LAW,If West Newton does turn out to be a large onshore commercial discovery - 17% or so UJO own will be worth fortunes. I would prefer they don't go any further with their exposure at WN. Perhaps negotiate a back in option so (in a success case) they can buy into some more?Its very simple - the name of the game with smallcaps looking to grow is; lots of meaningful shots at decent sized targets that are low risk and in good geological postcodes. A few will come good. One or two will be company makers - this is the story of Wressle I guess.Aslong as Brammers maintains his senses and avoids dreaming about pioneering the next great shale play, the Oklahoma strategy should do wonders. Its cheap and cheerful with plenty of rolls of the dice in a prolific region thats production focussed.Eagerly await the first well to get going in next couple of months.Cash

[markfrankie] 15/2/2024 15:32

Oh thanks LAW, I must remember incorrectly, thought the plan 'was' stage by stage Gas production, im sure that used to be the plan?

[likeawalrus] 15/2/2024 15:29

yes cost will be over several months but nothing will be monetised during the drill programme so imo my logic still stands

[markfrankie] 15/2/2024 15:06

Think we should look at the costs per drill not total

[markfrankie] 15/2/2024 15:05

WN horizontals will be drilled 1 at a time right? So successful 1st drill and we are off to the races

[cashandcard] 15/2/2024 00:20

thetoonarmy,


Appreciate that.

In relation to West Newton - I've considered it from years ago when RBD first bought in. I'm still not convinced the twins or their minions in Rathlin understand the play here. At £12-13mln gross cost, that's an expensive well. On balance, I would like to see UJO participate in this well given the risk reward profile. It will set them back £2.1mln or so, which will dent the finances for awhile. They definitely need to be careful how many expensive shots they take on these onshore UK prospects.

Just so much cheaper and easier in the US. Get a few rednecks out there and drill baby drill. 10day wells - quick tie-ins if successful.



Cash

[greypanther2] 14/2/2024 15:24

Hi LAW, The term "geological chance of success" usually means the chance of hitting some hydrocarbons which will not necessarily turn out to be commercial. However, with the low onshore opex in the USA, it doesn't need a lot of oil to be commercial. IMO you could probably make money out of as little as 100,000 barrels recoverable in Oklahoma.

[likeawalrus] 14/2/2024 15:06

when people say "geological chance of success" do they mean the chance of hitting hydrocarbons or do they mean finding commercial hydrocarbons?

[currypasty] 14/2/2024 13:32

@UnionJackOilplc
#ujo

Our Andrews-1 well is planned to be drilled in early Q2 2024, with a geological chance of success estimated by the Operator (Reach) to be 75%

Approximate ten-day drilling period to a depth of 5,200 feet

Completion time is swift; approximately eight days including perforating and flow-back if successful

"we are pleased to see good progress already being made with the well location staked and site construction to commence shortly"

[thetoonarmy2] 14/2/2024 12:19

He’s probably gone to Greggs and Dunkin Donuts for lunch.

[markfrankie] 14/2/2024 11:02

Yes I think your optimism is now well placed maxwell

[karina] 14/2/2024 08:03

Very sensible post cash thank you

[cashandcard] 14/2/2024 07:56

Bantam,Good question - I would suggest because the sheer number of plays available in the US, a small patchwork of single well development prospects will never interest a major or midcap, not even a large smallcap. They are chasing the vast Permian and other extensive shale fields.Only smallcaps/microcaps like Reach and UJO will be interested in a patchwork of interests like this as it can deliver a stepchange to their production profile and meaningful cashflow.Cash

[1347] 14/2/2024 07:41

Bantam Oh dear you shouldn't go around asking key questions like that.

[bantam175] 14/2/2024 07:17

It always begs the question, if these were such good investments why didn't any yanks snap them up?