.Union Jack Oil (UJO) has hit landmark net revenues of $9m from its Wressle hydrocarbon development in North Lincolnshire, in which it holds a 40% economic interest.
Since production was re-started at the well in August 2021 production and cash flows have risen steadily, meaning the company is now debt free with operational costs and capital expenditure covered for at least the next 12 months.
As at 25 August, net cash and receivables stood at £9.46m. The strength of anticipated cashflows mean the company is also executing a capital reduction to allow the payment of dividends or share buybacks.
As well as site upgrades to boost production volumes at Wressle by the year end, the company will invest in the West Newton development, in which it holds a 16.7% interest. Under a conceptual development plan published in June, UJO envisages an eight well development targeting a recoverable 35m barrels of oil equivalent. It expects first gas as soon as 2025.
Executive Chairman of Union Jack, David Bramhill, commented: " The revenues of in-excess of US$9,000,000 from the Wressle development continue to have a positive impact on the Company's Balance Sheet. Cash balances are expanding significantly 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.
The company will report its half-yearly results – and a maiden profit – in mid-September.