TIDMUJO
RNS Number : 7366Y
Union Jack Oil PLC
13 May 2019
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement
13 May 2019
Union Jack Oil plc
("Union Jack" or the "Company")
Final Results for the Year Ended 31 December 2018
Union Jack Oil plc (AIM: UJO), a UK focused onshore hydrocarbon
production, development and exploration company, is pleased to
announce its audited results for the year ended 31 December
2018.
Operational Highlights
-- Portfolio expanded with further selected asset
value-accretive transactions in Wressle and Biscathorpe
-- A 16.665% acquisition in PEDL183 containing the West Newton
A-1 gas discovery with a Contingent Resource of 189 bcfe
-- Increased proven reserves and level of resources
-- The current drilling of the West Newton A-2 appraisal well
Financial Highlights
-- Current cash balance in excess of GBP2.5 million, as at 1 May 2019
-- Fully funded for all current drilling and testing requirements
-- Production revenue increased by over 250%
-- Company remains debt free
David Bramhill, Executive Chairman, commented,
"Union Jack's strategy remains consistent with the objective of
the Board to build a successful and sustainable UK-focused, onshore
hydrocarbon production and development business.
"Marked progress was made in the year under review and in the
post balance sheet period, in particular, our acquisition of an
interest in PEDL183 containing the West Newton A-1 gas discovery,
where the West Newton A-2 appraisal well is currently underway, and
our increased interest to 27.5% in the Wressle-1 discovery.
"My confidence in respect of Union Jack's future, since its
incorporation, is at its optimum.
"The Company's future remains bright."
For further information, please contact:
Union Jack Oil plc +44 (0)7787 160 682
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser
Lindsay Mair
Richard Hail
Cassiopeia Services Ltd +44 (0)7949 690 338
Public Relations
Stefania Barbaglio
In accordance with the AIM Rules - Note for Mining and Oil and
Gas Companies, the information contained within this announcement
has been reviewed and signed off by Graham Bull, Non-Executive
Director, who has over 46 years of international oil and gas
industry exploration experience. This announcement contains certain
forward-looking statements that are subject to the usual risk
factors and uncertainties associated with the oil and gas
exploration and production business. While the directors believe
the expectation reflected within this announcement to be reasonable
in light of the information available up to the time of approval of
this announcement, the actual outcome may be materially different
owing to factors either beyond the Company's control or otherwise
within the Company's control, for example, owing to a change of
plan or strategy. Accordingly, no reliance may be placed on the
forward-looking statements
Chairman's Statement
I am pleased to present to the shareholders of Union Jack Oil
plc ("Union Jack" or the "Company"), the Annual Report and
Financial Statements for the year ended 31 December 2018.
Union Jack's strategy remains consistent with the objective of
the Board to build a successful and sustainable, UK-focused,
onshore hydrocarbon production and development business. In this
respect, we have delivered demonstrable growth and have expanded
our portfolio with what we consider to be quality, high-value
project interests with substantial upside potential in our focus
areas of the East Midlands, Humber Basin and East Yorkshire. In
addition, success in any one of our key assets would result in a
significant market valuation of the Company.
Marked progress was made in the year under review and in the
post balance sheet events period up to the signing of these
financial statements, with the highlights being:
-- enhanced our portfolio with selective, value-accretive
transactions by increased interests in both Wressle and
Biscathorpe
-- acquired a 16.665% working interest in PEDL183 containing the
material West Newton A-1 gas discovery with a Contingent Resource
of 189 bcfe (billion cubic feet equivalent)
-- increased our proven (1P), and proven plus probable (2P)
reserves and materially increased our level of contingent and
prospective resources
-- increased production revenue by over 250%
-- fully funded for all current drilling and testing requirements
-- currently drilling the West Newton A-2 conventional appraisal well
-- current cash balance in excess of GBP2.5 million, as at 1 May 2019
-- debt free
PEDL183 WEST NEWTON A-1 GAS DISCOVERY (16.665%)
During October 2018, Union Jack completed a farm-in to licence
PEDL183, containing the West Newton A-1 gas discovery, with Rathlin
Energy (UK) Limited, a subsidiary of Canadian registered Connaught
Oil & Gas Ltd where, according to a Competent Person's Report
prepared by Deloitte LLP in June 2017, there is in excess of 189
bcfe of 2C Contingent Resources within the Kirkham Abbey Shoal
formation and further considerable potential prospective resource
upside for oil within the deeper Cadeby Reef formation.
PEDL183 is located onshore UK, North of the Humber River, and
also contains the town of Beverley, East Yorkshire. The licence
area is within the western sector of the Southern Zechstein Basin
and the West Newton A-1 gas discovery is on-trend with the prolific
offshore Hewett gas complex.
The West Newton A-2 fully funded conventional appraisal well is
currently being drilled using the BDF28 rig and the first target,
the Kirkham Abbey Shoal formation, may have been penetrated and
possibly reported upon by the time of publication of this Annual
Report and Financial Statements.
There are a number of positives for the Company as a result of
the West Newton acquisition including:
-- farm-in terms were very attractive with no associated
up-front or back cost payments, with all funding going towards
drilling, licence costs and administration
-- compelling, immediate and future economic value from a
development of a gas discovery alone with the Operator's recently
upgraded NPV10% in excess of US$300 million
-- proximity to existing gas pipelines and infrastructure
-- significant Contingent Resources being added to the Company's resource inventory
Success at the West Newton A-2 appraisal well will result, in
time, in the delivery of a major onshore gas development of which
the value of our investment would be Company-changing and
effectively transform Union Jack's future.
The Company is fully prepared for success in this venture and
funds are in place for an extended well production testing
programme and a possible 3D seismic programme over other structures
which have been highlighted within the licence area.
PEDL180/PEDL182 WRESSLE DISCOVERY (27.5%)
Located in Lincolnshire on the Western margin of the Humber
Basin, PEDL180 and PEDL182 contain the substantial Wressle oil
discovery, with proven reserves and significant upside, from which
first commercial oil is expected to flow at a constrained rate of
500 barrels a day gross following successful planning approval.
During June 2018, the Company acquired a further 12.5% interest
in PEDL180 and PEDL182 from Celtique Energie Petroleum Limited,
increasing our holding in the project to a meaningful 27.5%. The
acquisition platform involved no initial cash consideration and the
deferred cost of GBP1.04 million is conditional on establishing
first commercial production at Wressle.
This acquisition had an immediate positive impact on Union Jack
by increasing its 2P reserves and 2C resource base by 83% to in
excess of 855,000 barrels of oil equivalent.
The justification for the Company increasing its interest in
Wressle is the transformative economic impact it will have, as we
believe that when commercial production is established at Wressle,
it would provide net cash flows to Union Jack of circa US$3.5
million per annum in the current oil price environment. After
taking operating costs into consideration, estimated to be below
US$15 per barrel, such revenues would propel Union Jack into a
material cash generating oil production company. In further support
of the acquisition, the economics are robust and net asset value
accretive down to an oil price of US$35 per barrel.
During 2018, two new applications were made to North
Lincolnshire Council ("NLC") to extend the planning term for
PEDL180 and PEDL182 and to obtain permission for development of the
Wressle-1 discovery.
The application to extend the planning term was denied by the
NLC's Planning Committee despite being recommended for approval by
NLC's Planning Officer.
A subsequent appeal was submitted to the Planning Inspectorate
and we were informed in January 2019 that the appeal had been
successful and an extension to the planning term had been granted
for a further year by the Planning Inspector.
Not unsurprisingly, the second and revised application for
development of the Wressle-1 discovery was again denied by NLC's
Planning Committee, despite recommendation to allow development by
its own Planning Officer and his positive conclusions within his
report being confirmed by external independent technical
consultants and experts (JBA Consulting) engaged by NLC to carry
out a robust review of the revised application. To quote JBA
Consulting within its independent report to the NLC, it stated, "In
comparison with the previous applications, in the new documentation
the main weaknesses identified by the Inspector appear to have been
addressed or can be addressed in planning conditions".
An appeal submitted to the Planning Inspectorate by the Operator
on behalf of the joint venture partners will be heard by the
Planning Inspector on 5 November 2019.
A Queen's Counsel has been appointed to assist our appeal to
obtain permission for development of this conventional oil
producing project that would be beneficial, not only to the many
companies which have invested in this venture, but also to the
surrounding community as supported and vindicated by the "Economic
Growth Plan for North Lincolnshire", launched by NLC at the House
of Lords in November 2018.
The Economic Growth Plan for North Lincolnshire champions the
growth of, and diversification of, the Humber chemical and energy
cluster, currently contributing some GBP6 billion to the economy.
Industries include petrochemicals, commodity and speciality
chemicals, composite materials, pigments and paints, wind turbines
and pharmaceuticals, and a raft of other associated industries
employing circa 15,000 people in at least 120 companies. Petroleum
remains fundamental to these locally-important industries including
in the manufacture of items such as wind turbines for the renewable
energy sector which rely upon composite materials involving
petroleum products, as do many industrial applications.
The oil that Wressle produced would contribute to these
industries and benefit the region as a whole, and further afield in
the UK. The oil produced at Wressle would also help offset
international oil imports typically shipped over long distances and
Wressle oil would be refined nearby in Immingham, keeping trucking
and transportation to a minimum, reducing the carbon footprint and
greenhouse gas emissions.
PEDL253 BISCATHORPE (22%)
PEDL253 is within the proven hydrocarbon fairway of the South
Humber Basin and is on-trend with the Saltfleetby gasfield,
Keddington oilfield and the Louth and North Somercotes
Prospects.
Over a century ago, Henry Ward Beecher, the American social
reformer and speaker quoted "One`s best success comes after their
greatest disappointments".
This statement reflects Union Jack's thoughts in respect of the
result of the drilling of the Biscathorpe-2 well, the results of
which were reported upon during February 2019, and more importantly
the future and potential success and remaining upside within the
PEDL253 licence area.
Biscathorpe, in the opinion of Union Jack`s management, remains
one of the UK's largest onshore un-appraised conventional
hydrocarbon prospects.
In 1987, British Petroleum drilled the Biscathorpe-1
conventional exploration well and encountered a thin, oil-saturated
section of the sandstone reservoir. The targeted Basal Westphalian
sandstone reservoir was expected to thicken at the Biscathorpe-2
well location North of the crest of the "structural high".
Following the completion of drilling and logging operations at
Biscathorpe-2, preliminary analysis indicated that the primary
objective, the Basal Westphalian Sandstone, was not encountered as
the well was drilled high to prognosis and did not thicken as
expected in the pre-drill model.
The Biscathorpe 'play' has not been properly tested by the
Biscathorpe-2 well, with the results indicating the targeted
sandstone has the potential to be more thickly developed to the
North and North-East of the Biscathorpe-2 location away from what
appears to be a more extensive than expected palaeo-high.
Union Jack's independent technical team is greatly encouraged by
the significant elevated gas readings and shows from logging
supported by calculated oil saturations in the Dinantian Carbonate
over an interval in excess of 500 feet which included a suite of
gas indications C1 to C5 and nC5 indicative of an effective
petroleum system existing in close proximity to the Biscathorpe-2
well. Union Jack has commissioned an independent geochemical
evaluation of the gas shows, the results of which will confirm
whether the gas ratios are consistent with oil associated
gases.
The open-hole section of the well has now been sealed and the
well suspended to retain the option for a potential future
side-track following the receipt of a new sub-surface model once
the new well data is integrated following the re-processing and
re-mapping of the existing 3D seismic data.
Union Jack retains its enthusiasm for the upside potential
within PEDL253 and looks forward to reporting on events in respect
of the licence during 2019.
PEDL143 WEALD BASIN (FORMERLY HOLMWOOD) (7.5%)
During Q3 of 2018, the previous Operator, Europa Oil & Gas
Limited ("Europa") announced that the relevant Government body had
not renewed the lease containing the site of the proposed
Holmwood-1 conventional exploration well. Following this decision,
the Operator withdrew its planning application to drill Holmwood-1.
The well site has been reinstated to its original condition and the
value of the intangible asset has been fully impaired by
GBP205,308.
In April 2019, Union Jack reached agreement with the new
Operator, UK Oil & Gas PLC ("UKOG") to sell its 7.5% interest
in PEDL143 for a consideration of GBP112,500. Payment in UKOG
shares allows Union Jack to not only benefit from UKOG's increased
interest in PEDL143, but also exposure to UKOG's wider Weald Basin
assets and other projects. Completion is subject to Oil and Gas
Authority approval.
This disposal will allow Union Jack to concentrate on its focus
areas of the East Midlands, Humber Basin and East Yorkshire, where
we hold interests in material and potentially Company-changing
assets.
OTHER ASSETS
Union Jack holds interests in nine further projects in addition
to those highlighted above.
Union Jack's wider portfolio includes licence interests in two
production assets, namely PEDL005(R) Keddington (20%) and EXL294
Fiskerton Airfield (20%), where combined production is a steady 50
barrels of oil a day gross. Both projects hold upside, especially
Keddington which is currently being re-mapped to review future
potential and contains part of PEDL339 the Louth Prospect and the
North Somercotes Prospect. In respect of Fiskerton Airfield the
joint venture partners are investigating the benefits of further
workovers and in-fill drilling to increase the production
output.
PEDL241 North Kelsey (20%) contains the drill-ready North Kelsey
Prospect where an extension for planning was granted by
Lincolnshire County Council in June 2018. PEDL241 is located within
the proven Humberside platform and the North Kelsey Prospect is
situated some
10 kilometres to the South of the Wressle-1 discovery. North
Kelsey will be drilled during late 2019 or 2020, subject to
obtaining farminees.
An interest is held in both PEDL118 Dukes Wood (16.67%) and
PEDL203 Kirklington (16.67%) oilfields where operations have
commenced to re-establish long term production.
PEDL201 Widmerpool Gulf (26.25%), formerly Burton-on-the-Wolds,
contains significant Bowland Hodder shale potential. Awards of
licences adjacent to PEDL201 to other parties under the 14th Round
offer encouragement regarding this play type. The directors are
considering the options to generate value from this licence and the
favoured outcome from this potentially significant play type would
be through an industry sale.
PEDL209 Laughton (10%) has no immediate activity planned on the
licence and was fully impaired during 2016 and 2017.
A detailed review of Union Jack's asset base can be found in the
Review of Operations section within this Annual Report.
CORPORATE AND FINANCIAL
Union Jack remains debt free and our current cash balance stands
in excess of GBP2.5 million, as at 1 May 2019, with sufficient
funds to pay our share of costs for an extended well test in the
event of a discovery at West Newton A-2, the acquisition of 3D
seismic over further prospects on PEDL183, operations at Wressle,
should there be a successful outcome of the planning appeal,
re-processing of the 3D seismic in respect of Biscathorpe, and
general administration costs.
In March and October 2018, two oversubscribed placings and
subscriptions for shares were effected, raising GBP1.25 million and
GBP2.25 million respectively before expenses.
In April 2019, a further oversubscribed placing and subscription
took place, raising GBP1.75 million before expenses. Details of
this exercise are reported in note 23, Events After the Balance
Sheet Date.
Given the ongoing Brexit discussions it would be remiss not to
comment on this topic. In respect of the ongoing discussions and
the potential effect on the Company going forward, it is impossible
to predict the effects as Brexit, or any variation upon that, has
not happened at the time of writing. However, Union Jack is aware
that one of our operators had an issue in respect of trying to hire
the most up-to-date sophisticated equipment from Europe, however,
the uncertainty surrounding the import / export and border
processes led to some draconian clauses being inserted into
documentation that made them impossible to accept. The result of
this was that British-based equipment with acceptable
specifications was hired instead.
I would like to thank our shareholders for their continued
support, as well as my colleagues and co-directors, who provide
invaluable advice and continue to champion the development of the
UK onshore hydrocarbon industry for the benefit of both Union Jack
and the wider economy.
I would also like to thank our wider suite of professional
advisers, who have contributed to the efficient running of Union
Jack and have enabled us to engage with investors to source
essential funding which enable our projects to move forward.
SUMMARY
My confidence in respect of Union Jack's future, since the
Company's incorporation, is at its optimum.
The Company eagerly awaits the results of the current drilling
of West Newton A-2 appraisal well, the result of the Planning
Appeal at Wressle and the re-processing of 3D seismic in respect of
Biscathorpe. These ventures are expected to provide a steady stream
of newsflow throughout 2019 and success at any one of these
projects has the potential to dramatically transform your
company.
Union Jack's asset portfolio is well balanced with the relevant
components of production, development, appraisal and discovery and
we are fully funded for our commitments going forward.
The future of Union Jack remains bright.
David Bramhill
Executive Chairman
13 May 2019
Income Statement
FOR THE YEARED 31 DECEMBER 2018
31.12.18 31.12.17
GBP GBP
================================================ ============= ===========
Revenue 165,270 46,203
Cost of sales - operating costs (159,046) (48,627)
Cost of sales - depreciation (32,186) (17,322)
Gross Loss (25,962) (19,746)
------------------------------------------------ ------------- -----------
Administrative expenses (excluding impairment
charge) (871,489) (722,502)
Impairment (205,308) (5,078)
------------------------------------------------ ------------- -----------
Total administrative expenses (1,076,797) (727,580)
Operating loss (1,102,759) (747,326)
Finance income 4,051 504
------------------------------------------------ ------------- -----------
Loss before taxation (1,098,708) (746,822)
Taxation - -
------------------------------------------------ ------------- -----------
Loss for the financial year (1,098,708) (746,822)
------------------------------------------------ ------------- -----------
Attributable to:
Equity shareholders of the Company (1,098,708) (746,822)
------------------------------------------------ ------------- -----------
Loss per share
Basic and diluted loss per share (pence) -(0.01) -(0.02)
------------------------------------------------ ------------- -----------
Statement of Comprehensive Income
FOR THE YEARED 31 DECEMBER 2018
31.12.18 31.12.17
GBP GBP
============================================ ============ ==========
Loss for the financial year (1,098,708) (746,822)
Other comprehensive income - -
-------------------------------------------- ------------ ----------
Total comprehensive loss for the financial
year (1,098,708) (746,822)
-------------------------------------------- ------------ ----------
Balance Sheet
AS AT 31 DECEMBER 2018
31.12.18 31.12.17
GBP GBP
====================================== ============ ============
Assets
Non-current assets
Exploration and evaluation assets 3,485,961 2,806,278
Property, plant and equipment 611,139 496,859
Investments 40,000 40,000
-------------------------------------- ------------ ------------
4,137,100 3,343,137
Current assets
Trade and other receivables 198,054 65,872
Cash and cash equivalents 3,123,287 1,578,514
-------------------------------------- ------------ ------------
3,321,341 1,644,386
Total assets 7,458,441 4,987,523
-------------------------------------- ------------ ------------
Liabilities
Current liabilities
Trade and other payables 396,688 310,079
-------------------------------------- ------------ ------------
Non-current Liabilities
Provisions 453,165 229,918
-------------------------------------- ------------ ------------
Total liabilities 849,853 539,997
-------------------------------------- ------------ ------------
Net assets 6,608,588 4,447,526
-------------------------------------- ------------ ------------
Capital and reserves attributable to
the Company's equity shareholders
Share capital 3,983,958 2,954,547
Share premium 7,593,146 5,379,670
Share-based payments reserve 78,319 61,438
Accumulated deficit (5,046,835) (3,948,129)
-------------------------------------- ------------ ------------
Total equity 6,608,588 4,447,526
-------------------------------------- ------------ ------------
Statement of Changes in Equity
for the year ended 31 December 2018
Share-based
Share Accumulated Share payment
capital deficit premium reserve Total
GBP GBP GBP GBP GBP
========================== =========== ============= =========== ============ ============
Balance at 1 January
2018 2,954,547 (3,948,129) 5,379,670 61,438 4,447,526
Total comprehensive
loss - (1,098,708) - - (1,098,708)
Contributions by and
distributions to owners
Issue of share capital 1,029,411 - 2,470,589 - 3,500,000
Share issue costs - - (257,113) - (257,113)
Share-based payments - - - 16,881 16,881
Total contributions
by and
distributions to owners 1,029,411 (1,098,708) 2,213,476 16,881 2,161,162
-------------------------- ----------- ------------- ----------- ------------ ------------
Balance at 31 December
2018 3,983,958 (5,046,835) 7,593,146 78,319 6,608,588
-------------------------- ----------- ------------- ----------- ------------ ------------
Balance at 1 January
2017 2,696,399 (3,489,703) 4,566,072 167,924 3,940,692
Total comprehensive
loss - (746,822) - - (746,822)
Contributions by and
distributions to owners
Issue of share capital 258,148 - 1,135,849 - 1,393,997
Share issue costs - - (140,342) - (140,342)
Prior period exercised
and expired warrants - 215,366 (114,074) (101,292) -
Current year expired
share warrants - - 5,194 (5,194) -
Total contributions
by and distributions
to owners 258,148 288,395 813,598 (106,486) 1,253,675
-------------------------- ----------- ------------- ----------- ------------ ------------
Balance at 31 December
2017 2,954,547 (3,948,129) 5,379,670 61,438 4,447,526
-------------------------- ----------- ------------- ----------- ------------ ------------
Statement of Cash Flows
FOR THE YEARED 31 DECEMBER 2018
31.12.18 31.12.17
GBP GBP
=============================================== ========== ============
Cash flow from operating activities (893,956) (503,331)
----------------------------------------------- ---------- ------------
Cash flow from investing activities
Purchase of intangible assets (755,919) (872,482)
Purchase of property, plant and equipment (52,291) (161,797)
Interest received 4,051 504
----------------------------------------------- ---------- ------------
Net cash used in investing activities (804,159) (1,033,775)
----------------------------------------------- ---------- ------------
Cash flow from financing activities
Proceeds on issue of new shares 3,500,000 1,393,997
Cost of issuing new shares (257,113) (140,342)
----------------------------------------------- ---------- ------------
Net cash generated from financing activities 3,242,887 1,253,655
----------------------------------------------- ---------- ------------
Net decrease in cash and cash equivalents 1,544,773 (283,450)
----------------------------------------------- ---------- ------------
Cash and cash equivalents at beginning
of financial year 1,578,514 1,861,964
----------------------------------------------- ---------- ------------
Cash and cash equivalents at end of financial
year 3,123,287 1,578,514
----------------------------------------------- ---------- ------------
Notes to the Financial Statements
for the year ended 31 December 2018
1 ACCOUNTING POLICIES
Basis of Preparation
The financial information in this announcement, which was
approved by the Board of Directors on 1 May 2019, does not
constitute the Company's statutory accounts for the year ended 31
December 2018 but is derived from those financial statements. The
auditor, BDO LLP, has reported on the statutory financial
statements and the report was unqualified and did not contain
statements under s498(2) or (3) Companies Act 2006. The statutory
financial statements have not yet been delivered to the Registrar
of Companies and will be delivered following the Company's Annual
General Meeting.
The comparative figures are derived from the statutory financial
statements of the Company for the year ended 31 December 2017. The
auditor report was unqualified, did not contain statements under
s498(2) or (3) Companies Act 2006 and have been filed with the
Registrar of Companies.
Whilst the financial information in this announcement has been
prepared in accordance with the recognition and measurement
criteria of International Financial Reporting Standards ("IFRS") as
adopted by the European Union, this announcement does not itself
contain sufficient information to comply with IFRSs.
Significant Accounting Policies
The accounting policies and methods of computation followed in
these financial statements are consistent with those as published
in the Company's Annual Report and Financial Statements for the
year ended 31 December 2018.
The Annual Report and Financial Statements are available from
the Company Secretary at the Company's registered office, 6
Charlotte Street, Bath BA1 2NE or on the Company's website
www.unionjackoil.com.
Going Concern
The directors have, at the time of approving the financial
statements, a reasonable expectation that the Company has adequate
resources to continue in operational existence for the foreseeable
future. Thus they continue to adopt the going concern basis of
accounting in preparing the financial statements.
The Company's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Chairman's Statement. The directors' forecasts
demonstrate that the Company will meet its day to day working
capital and share of estimated drilling costs over the forecast
period (being at least 12 months from the date the financial
statements were approved) from the cash held on deposit at the year
end. The principal risk to the Company's working capital position
is drilling cost overruns. The Company has sufficient funding to
meet planned drilling expenditures and a level of contingency.
Taking account of these risks, sensitised forecasts show that the
Company should be able to operate within the level of funds
currently held. The directors have a reasonable expectation that
the Company has adequate resources to continue in operational
existence for the foreseeable future. Thus they continue to adopt
the going concern basis of accounting in preparing the financial
statements.
2 LOSS PER SHARE
The Company has issued warrants and options over ordinary shares
which could potentially dilute the basic earnings per share in the
future.
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year.
During the current and prior year, the Company had warrants and
options in issue. At 31 December 2018 the Company had 51,407,842
(2017: 51,407,842) warrants in issue and 300,000,000 (2017: nil)
options in issue.
These warrants and options have not been taken into account when
calculating the diluted loss per share as their impact was
anti-dilutive. Therefore, the basic and diluted loss per share are
the same.
2018 2017
Pence Pence
======= =======
Loss per share
=========================================== ======= =======
Loss per share from continuing operations (0.01) (0.02)
------------------------------------------- ------- -------
The loss and weighted average number of ordinary shares used in
the calculation of loss per share are as follows:
2018 2017
GBP GBP
============================================ ================ ==========
Loss used in the calculation of total basic
and diluted earnings per share (1,098,708) (746,822)
------------------------------------------------ ------------ ----------
Number of shares 2018 2017
============================================ ============== ==============
Weighted average number of ordinary shares
for the purposes of basic
and diluted loss per share 7,532,096,235 4,149,180,372
-------------------------------------------- -------------- --------------
The Company has 831,680,400 (2017: 831,680,400) deferred shares.
These have not been included within the calculations of basic
shares above on the basis that IAS 33 defines an ordinary share as
an equity instrument that is subordinate to all other classes of
equity instruments. Any residual interest in the assets of the
Company would not currently, on liquidation, go to the deferred
shareholders, hence they are not currently considered subordinate.
These deferred shares have not been taken into account when
calculating the diluted loss per share as their impact was
anti-dilutive.
The Company issued 4,117,647,049 new ordinary shares during the
year (2017: 1,032,589,694).
3 RECONCILIATION OF LOSS TO CASH GENERATED FROM OPERATIONS
31.12.18 31.12.17
GBP GBP
=========================================== ============ ==========
Loss before taxation (1,098,708) (746,822)
Depletion of producing assets 32,186 17,322
Impairment of intangibles 205,308 5,078
Share-based payments 16,881 -
Finance income (4,051) (504)
------------------------------------------- ------------ ----------
(848,384) (724,926)
------------------------------------------- ------------ ----------
(Increase) in trade and other receivables (132,182) (3,172)
Increase in trade and other payables (86,609) 224,767
------------------------------------------- ------------ ----------
Cash used in operations (893,956) (503,331)
------------------------------------------- ------------ ----------
4 Exploration and evaluation assets
31.12.18 31.12.17
GBP GBP
================================ ========== ==========
At 1 January 2,806,278 2,079,340
Costs incurred during the year 911,172 977,340
Transfer to development and
production assets (106,181) (245,324)
Costs impaired (205,308) (5,078)
---------------------------------- ---------- ----------
At 31 December 3,485,961 2,806,278
---------------------------------- ---------- ----------
5 PROPERTY, PLANT AND EQUIPMENT
31.12.18 31.12.17
GBP GBP
========================================== ========= =========
Cost
At 1 January 514,181 -
Transfer from exploration and evaluation
assets 106,181 245,324
Additions 40,285 268,857
------------------------------------------ --------- ---------
At 31 December 660,647 514,181
------------------------------------------ --------- ---------
Depreciation
At 1 January 17,322 -
Charge for the year 32,186 17,322
------------------------------------------ --------- ---------
At 31 December 49,508 17,322
------------------------------------------ --------- ---------
Net book value
At 31 December 611,139 496,859
At 1 January 496,859 -
------------------------------------------ --------- ---------
Development and Production assets comprise amounts capitalised
as follows:
31.12.18 31.12.17
GBP GBP
==================== ============ ========= =========
Fiskerton Airfield EXL294 222,048 193,206
Keddington PEDL005(R) 282,910 303,653
Dukes Wood PEDL118 59,566 -
Kirlington PEDL203 46,615 -
-------------------- ------------ --------- ---------
At 31 December 611,139 496,859
---------------------------------- --------- ---------
6 SHARE CAPITAL
Allotted and issued: Class Nominal 31.12.18 31.12.17
Number value GBP GBP
=================================== ========= ========= ========== ==========
8,450,710,254 Ordinary 0.025p 2,112,677 1,083,266
(31 December 2017: 4,333,063,205)
831,680,400 Deferred 0.225p 1,871,281 1,871,281
(31 December 2016: 831,680,400)
----------------------------------- --------- --------- ---------- ----------
Total 3,983,958 2,954,547
----------------------------------- --------- --------- ---------- ----------
Ordinary shares hold voting rights and are entitled to any
distributions made on winding up. Deferred shares do not hold
voting rights and are not entitled to distributions made on winding
up.
Allotments during the year
In March 2018, 1,470,588,226 new ordinary shares were issued for
cash at 0.085 pence per share raising GBP1,250,000 before expenses
of GBP100,390.
In October 2018, 2,647,058,823 new ordinary shares were issued
for cash at 0.085 pence per share raising GBP2,250,000 before
expenses of GBP156,722.
7 EVENTS AFTER THE BALANCE SHEET DATE
The following events have taken place after the year end:
During January 2019, the Planning Inspectorate informed the
Operator that the appeal in respect of a planning extension on
PEDLs 180/182 was successful and the planning now expires in
January 2020.
During February 2019, documentation in respect of the appeal for
development of the Wressle discovery was submitted to the Planning
Inspectorate. Confirmation of the acceptance of the documentation
has been received and the appeal will be heard on 5 November
2019.
During February 2019, the Biscathorpe-2 conventional well
reached target depth and logging revealed that the well was drilled
high to prognosis. The well has been suspended for a potential
side-track in the future.
In March 2019, the Company raised GBP1,750,000 before expenses
in an oversubscribed fundraising. This fundraising was subject to
approval by shareholders via a General Meeting, held on 8 April
2019, whereby the resolutions were all passed by a majority.
Following this fundraising there are now 10,784,043,588 ordinary
shares in issue.
In April 2019, Union Jack reached agreement with UK Oil &
Gas PLC ("UKOG") to sell its 7.5% interest in PEDL143. The
aggregate purchase price by UKOG for the licence interest is
GBP112,500 and will be settled in cash that shall then be
immediately, simultaneously and irrevocably applied by Union Jack
for such number of ordinary shares in UKOG which is equal to
GBP112,500 divided by 1.156 pence, being the 5 day volume weighted
average price on 12 April 2019.
8 COPIES OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS
The Annual Report and Financial Statements will shortly be
posted to shareholders and is now available on the Company's
website www.unionjackoil.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR ZMGMKVGRGLZM
(END) Dow Jones Newswires
May 13, 2019 02:00 ET (06:00 GMT)
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