Union Jack Oil reported its total losses nearly doubled to £935,151 in the first six months of 2020 compared with £484,068 for the same period last year, but it remained confident in the future.
In its unaudited results for the first six months to 30 June 2020, the company reported a fall in revenue of £62,933 (H1 2019: £76,409) and gross revenue loss of £131,385 (H1 2019: £44,633).
Total assets stand at £12,569,726 (H1 2019: £7,748,544) and cash and cash equivalents for the end of June 2020 were reported at £4,621,774 (H1 2019: £1,442,126).
OPERATIONS
The oil and gas company said that, against a “challenging sector backdrop” during the first six months, it had progressed its core asset portfolio and secured additional interests.
Union Jack added that the remainder of the year promised to be a “transformational” period for the company.”
The company’s project interests lie in the East Midlands, Humber Basin and East, and it has made “significant progress” of three key project interests at West Newton, Wressle and Biscathorpe.
Drilling is imminent at West Newton B-1 site in Selby, and approval has been granted for the extended well test at the West Newton A-2 discovery.
Rapid development progress was being made at Wressle in Hull with first oil expected for the final quarter of 2020.
The company acquired a further 12.5% of Wressle, bringing the total to a material 40% interest.
A side-track to the Biscathorpe-2 well in the Lincolnshire Wolds is planned and will be drilled from the existing well bore.
After acquiring a further 3% in Biscathorpe, Union Jack’s interest is now a material 30% interest in what the company described as “one of the UK’s largest onshore un-appraised conventional hydrocarbon targets.”
Executive chairman David Bramhill added: “The past six months, and the subsequent period to this half yearly report, has seen significant progress and positive developments that augurs well for the execution of our strategy in delivering material growth in the medium term and achieving our goal of building a sustainable, UK onshore focused, mid-tier conventional hydrocarbon producer.
“The board remains both confident and optimistic and the future of Union Jack remains bright.”
* In a flash update today (14 September) the company said it was fully funded for its existing drilling, testing and development commitments at Wressle and West Newton.
“In order to progress its other core projects, Union Jack has identified a number of funding solutions which includes debt and equity financing or a combination of both.
“In addition, the company’s free cash flow position will be further transformed once Wressle comes onstream later this year.”