Union Jack Oil plc announced it had achieved $US3 million (£2.2m) net revenues since production restarted from the Wressle oil and gas development in Lincolnshire.
PRODUCTION
The company holds a 40% economic interest in the project’s licences PEDL180 and PEDL182 where production restarted on 19 August 2021.
Union Jack said that current daily production figures ranged from 600 to in excess of 700 barrels of oil per day from the Ashover Grit reservoir, constrained on a restricted choke.
The well continues to produce under natural flow with zero water cut.
Staged upgrades of the site are progressing well.
FINANCES
Union Jack added it was debt free and continued to cover all corporate, administrative and project operating costs.
As at 21 February 2022, the company had cash balances of £6,163,795 and receivables of £2,071,375.
Union Jack said it intended to make an early settlement to Calmar LP of £2,080,000, on or around 1 March 2022.
This is in respect of 25% acquisitions of PEDL180 and PEDL182 and will eliminate all major current trade payables.
Oil revenues to 31 December 2021, will be in excess of £1,890,000 (2020 audited: £158,004).
OPTIMUM
Executive chairman David Bramhill added that revenues of more than $3m, while Wressle was under test production, were “highly positive” for the company.
“We believe that Wressle holds significant further upside which will be demonstrated over the foreseeable future, and we look forward to reporting on progress in respect of site upgrades and achieving optimum production rates in due course.”