Union Jack Oil has announced a farm-in agreement with Reach Oil and Gas to acquire a 60% working interest in the Sark well in central Oklahoma, US.
Set to be drilled in early Q3 2025, the well is supported by 3D seismic data and targets a large dip and fault-closed structure with promising resource estimates.
The structure spanning 156 acres with a 40ft relief is estimated to contain recoverable resources of 1.44 million barrels of oil.
The cost to drill, complete, and develop the well is approximately $1.1m net, including back costs of $236,800.
With an oil price of $65 per barrel, the estimated net present value (NPV10%) in a success case is around $10.9m.
Union Jack executive chairman David Bramhill said: “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.”
The Sark drilling project is an untested structure with two main and several secondary targets.
The well will target the Hunton and 2nd Wilcox formations, with a total depth estimated at 5,500ft.
Additional prospective targets include the Prue Sands, Red Fork, and Base Pennsylvanian Sands.
The well will be drilled down to the Arbuckle formation, ensuring thorough exploration of the prospective sequence beneath the 2nd Wilcox.
The company estimates the chance of success for finding hydrocarbons in this robust structure with multiple targets at 65%.
It is located next to an oilfield that is currently producing, which adds to the potential of the project.
In November 2024, Union Jack Oil reported positive drilling results from the Taylor 1-16 well in Seminole County, Oklahoma, where it holds a 45% working interest.
The well reached a total depth of 4,577ft, with electric logs indicating hydrocarbon presence in the Hunton Limestone interval at 4,168ft, characterised by high porosity and permeability.
