Union Jack Oil (UJO), a UK-focused onshore hydrocarbon explorer, announced that it has passed US$16m in cumulative net revenues from its flagship Wressle project, located within licenses PEDL180 and PEDL182 in North Lincolnshire. Union Jack holds a 40% interest in Wressle.
Union Jack reached the milestone 22 months after recommencing production at Wressle in August 2021. The well has been producing under natural flow with zero water cut at approximately 780 barrels per day.
UJO continues to be cashflow positive covering all G&A, operational and contracted or planned capex costs, including any drilling activities, for at least the next 12 months. As of 13 June 2023, the oil producer held £9.23m in cash and £2.3m in liquid investments, totalling £11.53m with no debt.
Overall, the Wressle-1 well has delivered stable oil production with steadily climbing revenues since August 2021, continuing to bolster Union Jack's balance sheet. Cashflow has been further complemented by the company's 55%-owned Keddington oilfield where planning is underway for a side-track well. Additionally, Union Jack's buy-back programme has so far acquired 4.6% of shares in issue, improving EPS accordingly. An interim dividend of 0.3p will be paid on 28 July 2023.
In November 2022, Union Jack announced a gas monetisation programme at Wressle that will unlock gas revenues and enable Wressle's oil production limit to be lifted. As it stands, the Wressle-1 well peaks at 1000 bopd, with gas monetisation expected to have a materially positive impact on the future of the project. Investors should stay tuned to ongoing development of the Penistone Flags reservoir, which has 1.6mmboe of gross 2C resources, compared to existing 0.7mmboe gross 2P in the producing Ashover Grit and Wingfield Flags.
Today's milestone further solidifies Wressle's status as one of the most productive UK onshore oilfields, now generating in excess of US$1m a month. Strong cashflows from Wressle also underpin development elsewhere across Union Jack’s portfolio including Keddington (55% interest), Biscathorpe (45%), and North Kelsey (40%).
UJO shares rose 2.65% on the news.
Follow News & Updates from Union Jack Oil: