Union Jack Oil (UJO ), a UK-focused onshore conventional explorer and producer, announced it has passed US$14m of revenues from its flagship Wressle project, located within licenses PEDL180 and PEDL182 in North Lincolnshire.
Union Jack has reached $14m since re-commencement of production at Wressle on 19 August 2021. The Wressle-1 well continues to produce under natural flow with zero water cut. Union Jack currently holds a 40% interest in Wressle.
Union Jack is debt free as of 24 March 2023, with cash balances, short-term receivables and investments at over £10.5m.
Executive Chairman David Bramhill commented: "Revenues from Wressle continue to bolster the Company's Balance Sheet. Since the last production update, another consistent and impressive production performance from the Wressle-1 well has been recorded and the trend as seen throughout 2022 and the start of 2023 remains positive. Encouragingly, our significant cash balance continues to expand on a monthly basis, and we are funded for G&A, OPEX and contracted or planned CAPEX costs, including any drilling activities for at least the next 12 months."
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Revenues from Union Jack's flagship Wressle asset continue to climb, now at US$14m after reaching US$13m on February 6, and $12m on January 5. This comes 19 months after operations at Wressle recommenced on 19 August 2021. Today's milestone further solidifies Wressle's status as one of the most productive conventional-producing UK onshore oilfields.
Union Jack continues to be cash flow positive covering all G&A, OPEX, and contracted or planned Capex costs, including drilling activities and work programme commitments for at least the next 12 months. Union Jack remains debt free with cash balances, short-term receivables and investments at over £10.5m as of 24 March 2023.
The company's cash balance remains strong despite distributing a maiden dividend in December of 0.8p/share (over £900k in total) and continuing site upgrades at Wressle.
In November, 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.
Permits and appeals are also pending for drilling at Keddington (55% interest) and Biscathorpe (45%) in H2 2023, while the company is awaiting the results of a planning appeal for North Kelsey (40%).
UJO shares were up 3.2% in early trading.
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