Union Jack Oil (AIM:UJO ) said it remains fully funded for all future drilling and well testing commitments in the group’s final results for the year ending 31 December 2019.
The UK-focused onshore hydrocarbon producer said it was in “a strong position” with no debt and a cash balance in excess of £5.5m as at 1 May 2020 despite reporting a loss of more than £1.7m for the 12 month period in 2019.
Union Jack said this morning that it saw a loss of £1.7m last year, an increase of £626k from 2018’s £1.09m as revenue for the period fell from £165k in 2018 to £136k in 2019.
However, the firm maintains that its financial health “remains strong”, with a robust balance sheet, no debt, and cash reserves to fund its planned operations through to April 2021.
“My confidence in respect of Union Jack's future remains highly positive,” said Executive Chairman, David Bramhill.
Shares in Union Jack Oil were trading 2.08% higher at 0.122p during Monday morning.
During 2019 and to date, the group has advanced its key projects including the West Newton A-2 appraisal where drilling identified a 45m oil column underlying a 20m gas column within the Kirkham Abbey formation.
Meanwhile, the group was granted permission by the Planning Inspectorate to develop the Wressle hydrocarbon discovery where first oil is anticipated during the second half of 2020.
Bramhill said the group’s drilling and appraisal activity has resulted in “an accretion in asset value” as well as providing clarity on the next steps towards commerciality.
“I have no doubt that, even in these difficult times, given our attractive projects, we will achieve our goal of increasing production materially and becoming a significant mid-tier UK onshore producer in the medium term,” said Bramhill.
“The future of Union Jack remains bright,” he added.
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