Union Jack Oil Acquires 60% Stake in High-Potential Sark Oil Project in Oklahoma

• Gross Recoverable Resources: Estimated at a substantial 1.44 million barrels of oil for the primary targets.
• Success Case NPV (10%): A highly attractive estimated net present value (using a 10% discount rate) of circa $10.9 million net to UJO, based on a conservative oil price of $65 per barrel. That’s a potential ten-bagger return on their $1.1m net investment.
• Chance of Success (COS): Rated at a robust 65% for finding movable hydrocarbons in this multi-target structure – significantly higher than many exploration plays.

Strategy & Context: Building the American Dream

Executive Chairman David Bramhill’s comments frame this deal perfectly within Union Jack’s accelerating US strategy:

• Track Record: He highlights Union Jack’s remarkable run of “four consecutive discoveries” in the US over just 15 months.
• Moccasin Catalyst: The recent success at Moccasin, exhibiting similar play types, has bolstered confidence and directly catalysed this expansion into Sark.
• Portfolio Momentum: Sark is described as a “welcome addition” to a “rapidly growing portfolio of dynamic projects” in Oklahoma.
• Dual-Engine Strategy: Crucially, Bramhill positions the burgeoning US operations as “forming the foundations of a second valuable commercial business,” designed to complement the established, profit-generating Wressle asset in the UK. This is about diversification and growth.
• Sustained Activity: The company is now entering a “period of sustained activity in Oklahoma,” signalling more news flow and potential catalysts ahead.

The Verdict: Calculated Aggression

Union Jack’s Sark acquisition is a classic case of a company leveraging success to fund further, targeted growth. The deal structure involves paying a higher share of costs upfront for a majority working interest, betting squarely on their technical assessment and recent drilling form.

The geological setup is persuasive: multiple known productive targets stacked vertically, sitting right next door to proven production, with a statistically favourable 65% chance of success. The potential economics, with a net $10.9 million NPV against a $1.1 million outlay, offer asymmetric upside if successful.

This move emphatically underscores Union Jack’s strategic pivot. Oklahoma is no longer a speculative sideline; it’s becoming a core operational theatre alongside Wressle. The “second valuable commercial business” Bramhill references is actively being built, well by well. For investors, it signals confidence, momentum, and a clear focus on replicating their UK profitability stateside. The Sark spud date in early Q3 2025 is now firmly pencilled in as a key event. Watch this space – Oklahoma is getting interesting.