Union Jack Oil plc said it had achieved material net revenues of US$8 million since restart of production in August 2021 from the Wressle hydrocarbon joint venture in North Lincolnshire.
JOINT VENTURE
Union Jack holds a 40% economic interest in the development which lies within licences PEDL180 and PEDL182.
Partners include operator Egdon Resources plc (30%) and Europa Oil & Gas Holdings plc (30%).
Union Jack added that the well continued to produce under natural flow with zero water cut.
FINANCES
The company said it continued to hold a positive cash flow, covering all G&A, opex, and contracted or planned capex costs, including any drilling activities for at least the next 12 months.
As at 24 July 2022, cash balances and short term receivables were more than £9,150,000.
Union Jack confirmed it would post its first profit for the unaudited half year ended 30 June 2022.
PRODUCTION SCENARIOS
Executive chairman David Bramhill added that since Gaffney Cline began its report, oil production at Wressle had increased by circa 45%.
“Accordingly their report is being updated to reflect these new positive developments and is now using a reference date of 30 June 2022.
“In addition, Gaffney Cline are compiling three illustrative production scenarios for the Wressle oilfield, indicating average oil production plateaus for the low, medium and high cases, showing the conceptual production curves in each case for the remaining planning period of 13 years.
“Gaffney Cline have also been instructed to comment on any possible untapped resources at the Wressle-1 well that may be present.
“The report is currently being finalised and the results will be announced in due course.”