Union Jack Oil plc said it was in sound financial health and on course to becoming a significant principally onshore mid-tier UK oil and gas producer.
In its financial results for for the year ended 31 December 2020, the company reported increased revenue of £158,004 (2019: £136,959) from production income at Keddington and the Fiskerton Airfield oil fields.
Operating loss was £1,883,893 (2019: £1,705,198), primarily as a result of higher administrative costs due to additional technical work at West Newton, Wressle, Biscathorpe and Keddington.
Cash and cash equivalents at year end amounted to £7,269,014 (2019: £6,626,322).
The company raised £7m before expenses of £588,871 by way of a placing and subscription.
Total assets at year end were recorded as £21,340,804 (2019: £14,234,850), and net assets increased by 35% to more than £18m (2019: £13m).
OPERATIONS
For the period under review, highlights include the acquisition of a 35% interest in PEDL005(R) containing the producing Keddington oil field, and a 15% interest in PEDL339 (a portion of the Louth prospect) from Terrain Energy Ltd for £200,000.
In April 2020, the company purchased 5,000,000 new ordinary shares in Egdon Resources
plc for a total subscription of £100,000.
In June 2020, Union Jack acquired a further 12.5% interest from Humber Oil & Gas
Ltd in PEDL180 and PEDL182 (Wressle), for an initial £500,000.
A deferred amount of £1,040,000 is payable to Calmar LP, appointees of Celtique Energie Petroleum Ltd (the original vendors in the acquisition by Humber) on commercial oil production being established.
Following the transaction Union Jack now holds a 40% interest in the two licences.
The company also entered into a sale and purchase agreement with Montrose Industries Ltd to purchase a further 3% interest in PEDL253 (Biscathorpe) for £115,000.
In November 2020, Union Jack agreed to provide Egdon Resources plc with a £1,000,000 loan facility.
And in December 2020, the company announced a substantial hydrocarbon column with
a gross 62 metre interval in the Kirkham Abbey formation from the West Newton B-1Z appraisal well.
Executive chairman David Bramhill remained confident that the company would achieve its goal of becoming a significant, mainly onshore mid-tier UK producer.
“Union Jack’s wider asset portfolio continues to be well balanced with the relevant components of production, development, appraisal and discovery.
“The company remains in sound financial health, with a robust balance sheet, continues to be debt free, with ample cash reserves to fund its well testing and planned development commitments, offering shareholders ongoing and significant scope for growth.
“The future of Union Jack remains bright.”