Union Jack Oil (UJO) , a UK-focused onshore hydrocarbon explorer, said it has passed US$18m 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 two and a half years after recommencing production at Wressle in August 2021. The Wressle-1 well is currently averaging a constrained 665 barrels of oil per day as the operator continues to evaluate the reservoir response to increased pump rates. UJO installed a jet pump at Wressle-1 in October 2023, capable of handling 1,440 barrels of fluid per day.
"The US$18,000,000 net revenues achieved to date from Wressle (UJO 40%) continue to bolster the Company's Balance Sheet, complemented by additional cash-flow from the Keddington oilfield (UJO 55%). Going forward, future production and revenue updates from Wressle will be reported on a quarterly basis." said David Bramhill, Executive Chairman of Union Jack Oil.
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Revenues from Union Jack's flagship Wressle asset continue to climb, now at US$18m, up from US$12m a year ago. Wressle-1 has delivered steady production since recommencing operations in August 2021, continuing to bolster Union Jack's balance sheet, including a maiden profit, a comfortable cash position, and significant distributions to investors. Cashflow has been further complemented by the company's 55%-owned Keddington oilfield. UJO continues to be highly cash generative, covering all G&A, opex, 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 £9.45m as of January 12, 2024.
Union Jack also noted that Wressle-1 was responding favourably to the increased pump rate resulting from the recent installation of a jet pump and additional surface facilities at the site. Since receiving EA approval on December 14, Wressle-1's surface pump rate has incrementally increased, resulting in a material uplift in oil production rates, with a gross average rate of 665 bopd, up from 550 bopd previously. Further increases are possible pending evaluation by Wressle-1's operator. The new jet pump is capable of handling 1,440 barrels of fluid per day.
Union Jack recently announced a significant upgrade to Wressle's remaining 2P reserves by 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 increase has led to a material upgrade in value and forward opportunity at Wressle, supporting plans to install a gas export and the potential drilling of further production wells.
Markets reacted positively to today's news, sending UJO shares 4.6% higher in early trade.
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