Union Jack Oil plc expects to restart production during late 2024 at the Keddington oil field in the East Lindsey district of Lincolnshire.
GROWTH
The company, which owns 55% while Egdon Resources (UK) Ltd holds 45%, said that ongoing site improvements were “progressing well”.
Elsewhere in the UK, cumulated net revenues profits from the onshore Wressle joint venture have exceeded US$21 million (£16m).
Union Jack added it awaited “the most productive” phase of the project’s development.
Progress has also been made on its US assets with drilling expected to begin on or around 31 October on the recently acquired Taylor-1 well located in Seminole County, Oklahoma.
Taylor-1 will be the company’s third well after Andrews 1-17 and 2-17 spud earlier this year.
The well will be followed “as soon as possible” by the drilling of the Moccasin well.
Union Jack holds a 45% working interest in both wells operated by partner Reach Oil and Gas Company Inc.
Executive chairman David Bramhill added that Taylor had a good chance of success.
“One year on, our entry into the USA is already generating cash flow from the Andrews field and mineral royalty portfolio where returns of 20%+ are being seen in respect of our original capital investment.
“The successful, now predominantly gas producing Andrews 1-17 and 2-17 wells, forming the Andrews field, have to date produced 8,765 barrels of oil and 20,221,000 cubic feet of gas.
“Despite the current fiscal uncertainty that overshadows the UK upstream, Union Jack remains profitable and the board is committed to delivering on its stated growth strategy in both the USA and UK.”