UK-based oil and gas company Union Jack Oil has announced that testing at the Sark well in central Oklahoma, US, did not result in commercial hydrocarbon production.
Union Jack holds a 53% interest in the Sark well.
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The company conducted a 30-day production test on the Prue Sandstone interval, which was believed to be hydrocarbon-bearing during evaluation.
The well failed to deliver commercially viable hydrocarbons during the test.
The Sark well, drilled to a total depth of 5,391ft, underwent temporary production facility installation before the test programme.
Post-well analysis showed that while the well encountered a valid structural closure, the trap was later breached, impacting the potential for hydrocarbon recovery.
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By GlobalDataUnion Jack executive chairman David Bramhill said: “Following the drilling of four successful discoveries in Oklahoma to date, this is an unexpected and disappointing result.
“Our US interests, with income from Moccasin, the Andrews Field and Mineral Royalties, continue to be profitable and we look forward to continuing our Oklahoma drilling programme.”
In July, Union Jack Oil announced a farm-in agreement with Reach Oil and Gas, through which it acquired a 60% working interest in the Sark well.
The well targeted a significant dip and fault-closed structure, supported by 3D seismic data, and spans 156 acres with a 40ft relief.
The company’s estimates suggest the structure could contain recoverable resources of 1.44 million barrels of oil.
Union Jack Oil previously stated that the cost to drill, complete and develop the Sark well was approximately $1.1m (£842,035) net, including back costs of $236,800.
At an oil price of $65 per barrel, the company projected the net present value (NPV10%) in a successful outcome to be around $10.9m.
During the acquisition, Union Jack estimated a 65% chance of success for hydrocarbon discovery in the targeted structure, which comprises multiple prospects.
