Proactive Investors - Union Jack Oil PLC (LON:UJO) has now spudded the Andrews 2-17 well located in Oklahoma, the second well of its American venture alongside Reach Oil & Gas.
It follows quick success with the Andrews 1-17 well, and, it is expected that the two wells will share production facilities.
The AIM-quoted firm has a 45% working interest in Andrews 2-17, which is estimated to have an 80% geological chance of success.
Drilling is expected to take about eight days, with the well reaching a depth of around 4,700 feet – followed, if successful, by eight days of completion including perforation and flow-back.
The 2-17 well is located ‘up-dip’ from Andrews 1-17 well, and it is expected to encounter a similar reservoir.
Union Jack’s share of the well costs are estimated at $340,000, already paid from existing cash resources.
It targets the Hunton Limestone, which is a major hydrocarbon reservoir in Oklahoma.
"The Andrews 2-17 well has a high chance of success and if proven commercial could be in production within weeks from spudding,” executive chair David Bramhill said in a statement.
“Similar low-cost development wells nearby demonstrate that rapid pay-back can be achieved within six months.
"The rate of progress from generating a drillable prospect, obtaining permission to drill and spudding in Oklahoma is remarkable.”
Bramhill added: “Our relationship with Reach continues to grow and over the coming months we expect to expand our drilling portfolio and establish an impressive inventory of wells to be drilled, all covered by high-quality 3D seismic data.”
Union Jack, meanwhile, noted that onshore UK its net revenues from the Wressle field recently passed the $20 million milestone.
“We remain of the view that the most productive phase of development, the material Penistone Flags formation awaits,” Bramhill highlighted.