Union Jack nets $4m from Wressle JV

Union Jack Oil plc said it had achieved material landmark net revenues of US$4 million from the Wressle hydrocarbon joint venture in North Lincolnshire.

OPERATIONS

The revenue is the total since production restarted during August 2021.

The company holds a 40% economic interest in the development located in PEDL180 and PEDL182, which is operated by Egdon Resources plc.

Union Jack added that the well continued to produce under natural flow with zero water cut.

FINANCES

As at 25 March 2022, the company had cash balances and short-term receivables in excess of £6.6m

The company has paid an early settlement of £2,083,000 to Calmar LP in respect of deferred consideration on acquisition of 25% interests in the licences.

Union Jack said that it had cover for all operational and CAPEX costs, including any envisaged drilling, for “the foreseeable future” and is debt free.

PROSPECTS

Executive chairman David Bramhill added that the revenues had created a “sea change in the financial robustness of the company”.

“We are still in the early stages of the process of unlocking the significant upside potential at Wressle which is continuously improving as the site upgrades take effect, the future monetisation of the natural gas at the Ashover Grit reservoir and the substantial upside potential offered by the contingent resource present in the Penistone Flags reservoir that remains untapped.

“Given the future prospects at our core projects at Wressle, West Newton, Keddington and Biscathorpe, the board of Union Jack believes the company is now on a material growth trajectory which augers well for the future of the company and its shareholders.”