Union Jack Oil plc said it remained highly positive for the future following a nearly 12-fold increase in profits from its exploration and production assets in the UK.
FINANCES
The company’s audited results for the year ended 31 December 2021 showed revenues rose nearly 12-fold to £1,894,875 (2020: £158,004) from production at Wressle, Keddington oilfield and Fiskerton Airfield oilfield.
Losses fell to £853,013 (2020: £1,865,515) while administrative expenses rose slightly to £1,740,962 (2020: £1,590,576) due to additional technical work for Wressle, West Newton, Biscathorpe and Keddington.
Cash and cash equivalents at year end amounted to £5,977,541 (2020: £7,269,014).
Total assets at year end were £24,472,708 (2020: £21,340,804) with non-current assets of £16,392,416 (2020: £13,725,734).
Expenditure included £500,000 for a further 15% interest in Biscathorpe and completion and testing operations at West Newton.
Tangible assets totalled £7,575,525 (2020: £6,452,287) which included the proppant squeeze and site enhancement at Wressle.
In September 2021, a placing and subscription raised £3,000,000 before expenses of £312,484.
The company made an early settlement payment to Calmar LP for the 25% acquisition in PEDL180 and PEDL182 (Wressle), and is debt free
Union Jack said it would not recommend paying a dividend (2020: £nil).
SHARE BUY-BACK
The company is currently funded for all operational and contracted or planned CAPEX costs, including any budgeted drilling for the next 12 months
Union Jack is also progressing legal work on capital reduction to enable a share-buy-back programme or dividend payment.
FUTURE
Chief executive David Bramhill added that the company had advanced a number of its key projects, which had been “transformational financially” with indications that the “Wressle journey” had only just started.
“The latest results at West Newton are highly encouraging regarding the prospects of the significant hydrocarbon discoveries made to date and their development potential.
“I remain confident that future news arising from our well-balanced portfolio containing relevant components of production, development, appraisal and exploration will continue to vindicate the board’s unflinching optimism in respect of our company’s focused strategy.
“I believe our company is in sound financial health with a robust balance sheet.
“Union Jack continues to be debt free, with significant cash reserves and substantial future revenues expected.”