Union Jack Oil (UJO ) has generated landmark revenues of US$1m since the company re-commenced production at the Wressle hydrocarbon development on 19 August 2021.

The Company holds a 40% economic interest in Wressle, which is located within licences PEDL180 and PEDL182 in North Lincolnshire, on the Western margin of the Humber Basin. 

Union Jack told investors that current daily production figures are ‘well in-excess’ of the prognosed 500 barrels of oil per day from the Ashover Grit reservoir in the Wressle-1 well. 

The Company explained that elevated production rates have been maintained during the well test on significantly restricted choke setting and sustained high flowing wellhead pressure.

The well is producing under natural flow whilst the clean up continues. UJO said its full potential has yet to be achieved. Zero water has been cut while staged site upgrades have now commenced. Wressle expects production to be ‘highly profitable’ at current oil prices.

The Company highlighted to investors that it believes further development and production at Wressle can be achieved from the Wingfield Flags and Penistone Flags formations. It said a Gaffney Cline Competent Person’s Report which was commissioned by UJO is ‘ongoing.’

Executive Chairman of UJO, David Bramhill, commented: “The net revenues exceeding US$1,000,000 within a relatively short time frame is financially transformational for UJO.”

He commented “Our acquisition of further interests in Wressle over the last couple of years from just 8.33% to being the major equity holder with 40% is now showing material results.”

Addressing shareholders, he highlighted that this gives Union Jack increased confidence that it is “set to deliver on its aim to become a self-sustainable entity in due course.”

Bramhill said UJO currently has four cash generating projects. He said revenues for FY21 are “guaranteed” to eclipse those reported upon in FY20 and for the six months to 30 June 2021.

In recent weeks, Union Jack Oil published results from a recent Extended Well Test at West Newton confirming substantial conventional onshore hydrocarbon discoveries at the site.

Specifically, the results of the recent EWTs confirmed that the WNA-1, WNA-2 and WNB-2 wells are ‘substantial hydrocarbon discoveries’ within the Kirkham Abbey formation.

Gas and light oil/condensate were recovered to surface from both the WNA-2 and WNB-1z wells and multiple samples have been gathered for geochemical analysis which is underway.

The data accumulated during the EWTs, including downhole logs, pressure geochemical and core analysis and VSP (Vertical Seismic Profile) will be used to progress a reservoir modelling study to determine the optimum production design for the Kirkham Abbey reservoir, it noted.

It explained that over the coming weeks, a number of external studies will be conducted, encompassing a wide range of potential reservoir stimulation treatments, the results of which could be applied to the West Newton series of wells, in order to achieve optimum flow rates.

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