Union Jack Oil plc recorded its first net profit of £3,606,624 post tax from a 340% increase in oil revenues mainly from the Wressle joint venture in the East Riding of Yorkshire.
FINANCES
The company’s audited results for the year ended 31 December 2022 showed revenues from oil sales of £8,507,050 (2021: £1,894,875) from Wressle as well as Keddington and Fiskerton Airfield oil fields in North Lincolnshire.
The company’s profit, compared with a loss of £853,013 for 2021, includes impairments to property, plant and equipment of £478,584 (2021: £156,995).
Administrative expenses, excluding impairment costs, decreased to £1,665,174 (2021: £1,740,962) due to lower share based costs for share options.
Cash and cash equivalents at year end rose to £7,155,100 (2021: £5,977,541).
Total oil revenue contributing assets at year end increased to £26,361,337 (2021: £24,472,708).
Non-current assets at year end rose slightly to £17,157,286 (2021: £16,392,416).
Intangible assets totalled £9,134,006 (2021: £8,525,373) while tangible assets fell to £5,666,212 (2021: £7,575,525).
Union Jack said that the tax breaks available for future investment in projects provided an “effective cushion” to mitigate the 35% energy profits levy.
OUTLOOK
Chairman David Bramhill added that the Wressle development offered “significant material upside” to provide revenues for at least another decade.
Results from West Newton, where a horizontal well is to be drilled, signalled “a potentially highly valuable onshore project with resources comparable to those usually reported offshore”.
“The company will remain focused on the development of its flagship projects, Wressle and West Newton, where the respective operators and joint venture partners have ambitious appraisal and development programmes planned.
“Union Jack is in sound financial health with a robust balance sheet, continues to be free of debt, has significant cash reserves with no requirement to raise capital for its planned operations for the foreseeable future.
“The future of Union Jack remains bright.”