Union Jack Oil calls Oklahoma test results 'unexpected and disappointing'

(Sharecast News) - Union Jack Oil said on Wednesday that testing at its Sark well in central Oklahoma failed to produce commercial hydrocarbons despite evidence of a valid structural closure. The AIM-traded oil and gas company, which holds a 53% interest in the project, said the well was drilled to a total depth of 5,391 feet and showed hydrocarbon-bearing intervals on electric logs in the Prue Sandstone.

However, after installing temporary production facilities and conducting a 30-day test programme, the zone did not yield commercially viable output.

Post-well analysis indicated that while the well encountered a valid structural trap, it was subsequently breached, preventing successful hydrocarbon accumulation.

"Following the drilling of four successful discoveries in Oklahoma to date, this is an unexpected and disappointing result," said executive chairman David Bramhill.

"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."

At 1406 GMT, Union Jack Oil shares were down 11.84% at 3.35p.

Reporting by Josh White for Sharecast.com.