Union Jack Oil (UJO ), a UK-focused onshore conventional explorer, announced it has passed US$11 million of revenues from its flagship Wressle project, located within licenses PEDL180 and PEDL182 in North Lincolnshire. Union Jack currently holds a 40% interest in Wressle.
Union Jack has reached $11m 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 said site upgrades are ongoing and a gas monetisation plan is in place for both Ashover Grit and Penistone Flags reservoirs.
Union Jack continues to be be cash flow positive covering all G&A, OPEX, and contracted or planned Capex costs, including drilling activities or work programme commitments for 2023 and 2024.
As of 11 November 2022, UJO's cash balances and eq stood at over £10.8m, and unaudited Q3 2022 accounts showed a further profitable period for the company. Union Jack remains debt free with unaudited revenues from 1 January to date in excess of £7.9m.
Union Jack has also announced a maiden special dividend of 0.8p and a share buyback programme. The dividend is payable on 16 December 2022.
David Bramhill, Executive Chairman, commented: "The revenues of in-excess of US$11,000,000 from the Wressle development continue to bolster the Company's Balance Sheet. Since the last production update, another impressive performance from the Wressle-1 well has been recorded and the trend, as seen throughout 2022 remains positive.
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 or work programme commitments, for 2023 and into 2024.
We are pleased to have announced a maiden special dividend of 0.8 pence per ordinary share, payable on 16 December 2022, as well as the commencement of a share buy-back programme where the Company controls the number of shares to be bought, within the authorities approved at the Annual General Meeting in June 2022.
Your Company has achieved a number of significant milestones during 2022, which include a strengthened balance sheet, cash generation, profitability, and an upgraded reserve and resource base.
We have high expectations that this strong performance will continue for the foreseeable future."
View from Vox
Like clockwork, 40 days after Union Jack Oil reported US$10m of revenues from Wressle, the company has passed the US$11m mark. This comes 15 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, set to become second only to Perenco's Wytch Farm.
Union Jack's cash balance on 11 November stood at £10.8m and is steadily growing, keeping the company's expenses covered through 2024, including G&A, Opex, and contracted or planned Capex costs. This includes all drilling activities and work programmes. Union Jack remains debt free with unaudited revenues YTD in excess of £7.9m.
Furthermore, last week 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.
Three weeks ago, Union Jack shares jumped 15% after the company announced a maiden dividend and share buyback programme. Shares are currently up 34% since that announcement. UJO shares are also up an impressive 132% YTD as Wressle continues to outperform and West Newton shapes up to be a second home run for the company. The announced share buyback programme should result in an increase in EPS and improve UJO shares' trading liquidity.
Union Jack's unaudited revenues from 1 January 2022 to date are in excess of £7.9m, and unaudited 3Q results demonstrated another profitable period for the company. Union Jack remains debt-free and fully funded for at least another 18 months.
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