Union Jack Oil plc has increased its share to 3.13% in Egdon Resources, the operator of the hydrocarbon joint venture (JV) at Wressle, North Lincolnshire.
NET REVENUES
The news comes as Union Jack reported net revenues of US$10 million from the JV in PEDL180 and PEDL182 since the restart of production in August 2021.
The JV comprises Egdon with a 30% economic interest, Union Jack (40%) and Europa Oil & Gas Holdings plc (30%).
EGDON SHARES
Union Jack exercised 4,000,000 warrants at 2.5p each to subscribe for 4,000,000 ordinary shares in Egdon, taking its holding to 17,000,000 ordinary shares.
The company said its total shareholding in Egdon was now valued at £909,500.
Upgrades at the site continue and the Wressle-1 well is producing under natural flow with zero water cut.
OUTLOOK
Executive chairman David Bramhill added that the outlook remained positive with revenues from Wressle continuing to bolster the company’s balance sheet.
“Cash balances continue to expand month-on-month, and we are funded for G&A, opex and contracted or planned capex costs, including any drilling activities for at least the next 12 months.”