Union Jack Oil (AIM:UJO ) said it has seen “significant progress” at its three key project interests, West Newton, Wressle and Biscathorpe, in its half-year report for the six months ended 30 June 2020.

Union Jack said ‘significant progress’ has been made at the West Newton B-1 site where drilling is imminent while approvals are in place for an extended well test programme at the West Newton A-2 discovery. 

The UK-focused oil and gas firm also reported ‘rapid progress’ at the Wressle production site in North Lincolnshire where first oil is on-track for the Q4 2020. The company increased a former 12.5% stake in Wressle to a material 40% interest last month for £0.5m. Union Jack said it expects this to have ‘an immediate positive impact’ by increasing its reserves and resources by 45.5% to 1.24 million barrels of oil equivalent.

Over the same period, the group raised its 3% interest in the Biscathorpe asset, bringing its interest to a material 30% interest. Under Union Jack management's view, Biscathorpe remains one of the UK's largest onshore un-appraised conventional hydrocarbon targets.

Union Jack told investors that its financial health has remained strong, with a robust balance sheet with cash reserves to fund its planned drilling, testing and development operations. The group ended the six months to 30 June 2020 with £4.5m of cash and is debt free.

Shares in Union Jack Oil have improved from lows of 0.08p in April and were trading 2.82% higher at 0.182p on Monday morning following the announcement.

David Bramhill, Executive Chairman of Union Jack said developments across the group’s three material assets have already generated a steady stream of news flow during this past year “can be expected to continue throughout the remainder of the year and beyond”.

He said the period has seen “significant progress and positive developments” demonstrating the group’s strategy in delivering material growth in the medium term and achieving its goal of building a sustainable, UK onshore focused, mid-tier conventional hydrocarbon producer.

"The Board remains both confident and optimistic and the future of Union Jack remains bright,” added Bramhill.

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