REG - Union Jack Oil PLC - Farm-in Agreement: Sark Drilling Project, USA

Union Jack OilAnnouncement

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RNS Number : 2568Q  Union Jack Oil PLC  09 July 2025

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/201

 as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed

in accordance with the Company's obligations under Article 17 of MAR.

 

9 July 2025

 

 

Union Jack Oil plc

("Union Jack" or the "Company")

Farm-in Agreement: Sark Drilling Project, Oklahoma, USA

 

Union Jack Oil plc (AIM: UJO, OTCQB: UJOGF), a UK and USA focused onshore
hydrocarbon, production, development, exploration and investment company  is
pleased to announce that the Company has signed a farm-in agreement with Reach
Oil and Gas Inc ("Reach") to acquire a 60% working interest (paying 80%) in
the Sark well, planned to be drilled early Q3 2025, located in Central
Oklahoma, USA.

 

·    3D supported Sark well will drill a dip and fault closed large
structure of 156 acres area and 40 feet relief

·    Estimated recoverable resources of 1,440,000 barrels of oil gross

·    Cost to drill, complete and develop circa US$1,100,000 net, including
back costs of $236,800

·    Estimated success case of NPV10% circa US$10,900,000 net, based on a
US$65/bbl oil price

·    Counter-regional fault down to the east in the Graben formed by the
Wilzetta Fault with structural closure at Arbuckle level with further upside
potential of 1,500,000 barrels of oil gross

·    Hunton and 2(nd) Wilcox formations are the objective targets with
Total Depth estimated at 5,500 feet

·    Secondary targets productive in the immediate area include the Prue
Sands, Red Fork and Base Pennsylvanian Sands

·    Adjacent to an oilfield that produced circa 1,600,000 barrels of oil
from the Hunton and 2(nd) Wilcox sands

·    Chance of Success of finding movable hydrocarbons in this robust,
multiple target structure is 65%

 

Sark is an untested Hunton and Wilcox structure with two main and several
secondary targets present, adjacent to a producing oilfield.  Closure exists
throughout the prospective sequence beneath the 2(nd) Wilcox and the well will
be drilled to the Arbuckle formation.

 

David Bramhill, Executive Chairman of Union Jack, commented: "We are pleased
to be able to announce a further agreement with our partners, Reach, on the
high-impact Sark well that on success will be another material oil development
project for Union Jack.

"Sark is the next welcome addition to our rapidly growing portfolio of
activities in Oklahoma and follows the successful oil discovery at Moccasin
where such play types are now designated a high chance of success.

"In just over 15 months the Company has drilled four consecutive discoveries
and compiled a portfolio of what we believe to be dynamic projects, forming
the foundations of a second valuable commercial business in the USA,
complementing our sound and profit-making revenues from Wressle in the UK.

"The recent success at Moccasin has been a catalyst and Union Jack is now
entering into a period of sustained activity in Oklahoma, where we have every
reason to be confident following the Board`s decision to expand operations
into the USA."

 

 

For further information, please contact:

Union Jack Oil
plc
info@unionjackoil.com (mailto:info@unionjackoil.com)

David Bramhill

 

SP Angel Corporate Finance
LLP
+44 (0)20 3470 0470

Nominated Adviser and Joint Broker

Matthew Johnson

Richard Hail

Jen Clarke

 

Zeus Capital
Limited
+44 (0)20 3829 5000

Joint Broker

Antonio Bossi

Simon Johnson

James Hornigold

 

Gneiss Energy
Limited
   + 44 (0)20 3983 9263

Financial Adviser

Jon Fitzpatrick

Paul Weidman

 

Harbour
Access
  +1 (475) 477 9402

USA Investor Relations

Jonathan Paterson

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