[source: Union Jack Oil]

Union Jack Oil (UJO ) has achieved landmark revenues of US$4 million from the Wressle hydrocarbon development within licences PEDL180 and PEDL182 in North Lincolnshire.

The UK-focused onshore hydrocarbon exploration company holds a 40% economic interest in this producing hydrocarbon development located on the western margin of the Humber Basin.

Since the re-commencement of production at the Wressle hydrocarbon development back in August 2021, the company has made US$4m in revenues. Today, the company said the well continues to produce under natural flow with zero water cut while upgrades remain ongoing.

As at 25 March 2022, Union Jack’s cash balances and short term receivables stood at in-excess of £6.6 million. The Company remains covered for all operational and CAPEX costs, including any envisaged drilling, for the foreseeable future, and remains debt free.

Union Jack said an early settlement of £2.083m has been made to Calmar LP in respect of deferred consideration on acquisition of 25% interests in licences PEDL180 and PEDL182.

The Company added that solicitors are engaged to advance legal work on Capital Reduction exercise to enable the Company to execute share buy-back programme or dividend payment.

Commenting on this morning’s news, Executive Chairman of Union Jack, David Bramhill commented: “The revenues from the Wressle development have created a sea change in the financial robustness of Union Jack, as the figures above illustrate. We are still in the early stages of the process of unlocking the significant upside potential at Wressle which is continuously improving as the site upgrades take effect, the future monetisation of the natural gas at the Ashover Grit reservoir and the substantial upside potential offered by the Contingent Resource present in the Penistone Flags reservoir that remains untapped.

“Given the future prospects at our core projects at Wressle, West Newton, Keddington and Biscathorpe , the Board of Union Jack believes it is now on a material growth trajectory which augers well for the future of the Company and its shareholders,” Bramhill further highlighted.

An operational update for the Wressle development is expected to be published next month.In addition to the Wressle development, Union Jack has three other cash generating projects.

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