Union Jack Oil (UJO) , a UK-focused onshore hydrocarbon explorer, noted a recently published competent person's report (CPR) for its flagship Wressle project located within licenses PEDL180 and PEDL182 in North Lincolnshire. UJO holds a 40% interest in Wressle.
Prepared by ERCE, the new Wressle CPR indicates a 263% increase in 2P Reservers compared to the 2016 CPR. Additionally, the report reclassified 1,883 mboe in Penistone Flags Contingent Resources to 2P Reserves, upgraded the Ashover Grit and Wingfield Flags Estimated Ultimate Recoverable (EUR) by 59%, and the Broughton North Prospective 2U Resources by 23%.
"Following the identification of the material increase in Reserves and Resources, we look forward to 2024 with enthusiasm, where we expect to be able to continue to crystallise the potential additional value of Wressle for the benefit of UJO's shareholders." commented David Bramhill, Executive Chairman of Union Jack Oil.
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UJO shares gained 7% on the results of a new CPR, issued two days ago by industry consultant ERCE, for UJO's flagship 40%-owned Wressle field. The programme integrated reprocessed 3D seismic and results of the well testing programme and production data developed in the period to July 2023. The CPR materially upgraded Wressle's remaining 2P reserves by 263% to 2.4mmboe gross from 0.7mmboe previously, including an upgrade of resources in the Penistone Flags formation from 2C into 2P.
The significant increase in Wressle's reserves validates the recent focus by the JV partners management of the field's production to maximise recoverable volumes, providing further support to the project's ongoing ambitious development schedule. Overall, the results validate the forward opportunity at Wressle, including plans to install a gas export and potential drilling of further production wells. The recent installation of a jet pump and additional surface facilities at Wressle-1 provide further scope for a material upgrade in oil and gas production.
Union Jack continues to be highly cash generative, covering all G&A, operational and contracted or planned capex costs, including drilling activities and work programme commitments for the next 12 months. The company remains debt free, with cash and investments at over £9.25m as of September 8 2023.
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