Union Jack Oil PLC US$8 Million Net Revenues Reached at Wressle (5177T)
25 July 2022 - 4:00PM
UK Regulatory
TIDMUJO
RNS Number : 5177T
Union Jack Oil PLC
25 July 2022
25 July 2022
Union Jack Oil plc
("Union Jack" or the "Company")
US$8,000,000 Net Revenues Landmark Reached at Wressle
Union Jack Oil plc (AIM: UJO) a UK focused onshore hydrocarbon
production, development and exploration company, is pleased to
announce that material landmark net revenues of US$8,000,000 have
been achieved from the Wressle hydrocarbon development ("Wressle"),
located within licences PEDL180 and PEDL182 in North Lincolnshire
on the western margin of the Humber Basin.
Union Jack holds a 40% economic interest in this
development.
Highlights
-- Landmark US$8,000,000 revenues generated to Union Jack since
re-commencement of production on 19 August 2021
-- Well continues to produce under natural flow with zero water cut
-- Union Jack continues to be cash flow positive covering all
G&A, OPEX and contracted or planned CAPEX costs, including any
drilling activities for at least the next 12 months
-- At 24 July 2022, cash balances and short term receivables stood at over GBP9,150,000
-- Union Jack confirms a maiden profit to be posted for the
unaudited half year period ended 30 June 2022
-- To date, due to Union Jack's current capital expenditure
programme, the recently introduced Energy Profits Levy of 25% is
not expected to be material to the Company
-- Debt free
Executive Chairman of Union Jack, David Bramhill, commented: "
The revenues of in-excess of US$8,000,000 from the Wressle
development continue to bolster the Company's Balance Sheet.
"Since the last production update published during June 2022,
another impressive production performance from the Wressle-1 well
has been recorded and the trend remains positive.
"Cash balances are expanding significantly on a monthly basis,
and we are funded for G&A, OPEX and contracted or planned CAPEX
costs, including any drilling activities for at least the next 12
months.
"The Gaffney Cline report continues to be updated and upgraded
to reflect increased production rates and also incorporate other
ongoing positive reservoir modelling and production profiling
exercises into its final analysis.
"Since Gaffney Cline commenced their report, oil production at
Wressle has increased by circa 45% and, accordingly their report is
being updated to reflect these new positive developments and is now
using a reference date of 30 June 2022.
"In addition, Gaffney Cline are compiling three illustrative
production scenarios for the Wressle oilfield, indicating average
oil production plateaus for the low, medium and high cases, showing
the conceptual production curves in each case for the remaining
planning period of 13 years.
"Gaffney Cline have also been instructed to comment on any
possible untapped resources at the Wressle-1 well that may be
present. The report is currently being finalised and the results
will be announced in due course."
For further information, please contact
Union Jack Oil plc
info@unionjackoil.com
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Broker
Matthew Johnson
Richard Hail
Caroline Rowe
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