TIDMUJO
RNS Number : 5009Y
Union Jack Oil PLC
07 September 2022
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
7 September 2022
UNION JACK OIL PLC
(AIM: UJO)
Unaudited Results for the Six Months Ended 30 June 2022
Union Jack Oil plc ("Union Jack" or the "Company"), a UK focused
onshore conventional oil and gas production, development and
exploration company, is pleased to announce its unaudited results
for the Half Year ended 30 June 2022.
HIGHLIGHTS
-- Maiden profit of GBP2,034,086 for the six-month period ended 30 June 2022
-- Revenue of GBP4,384,254 for the six-month period ended 30 June 2022
-- Cash balances, receivables and liquid investments stand at
approximately GBP10,500,000 as at 6 September 2022
-- Company remains debt free
-- Approvals for the Wressle Field Development Plan and licences
for the production phase through to 2039 received from the North
Sea Transition Authority ("NSTA")
-- Wressle currently amongst the most productive conventional
producing UK onshore oilfields and poised to become second ranked
only to the prolific Wytch Farm
-- To date, our flagship project at Wressle has produced over
225,000 barrels of high-quality oil (gross) with zero water cut
-- GaffneyCline Reserves and Resource Report, Illustrative
Production Profile and Upside Potential of the Wressle Field are
expected be published during September 2022
-- Planning granted at West Newton for both A and B site works and three-year permit extension
-- Joint Venture partners progressing with a conceptual
development plan for West Newton, predominantly as a major gas
producer
-- First horizontal appraisal well at West Newton planned for 2023
-- Completion of Competent Person's Report, compiled by RPS
Group covering West Newton and other significant prospects within
PEDL183 expected by end of Q3 2022
-- In March 2022, a cash payment of GBP2,083,333 was made to
Calmar LP in respect of the early settlement of the deferred
consideration for the past purchases of an additional 25% of
interest in PEDL180 and PEDL182 containing the Wressle development,
bringing the Company's economic interest to 40%
-- In August 2022, the High Court approved a Capital Reduction
creating additional distributable reserves to the value of
GBP21,553,557, providing the Company with flexibility to deliver
future shareholder returns in the form of dividends and/or share
buybacks
David Bramhill, Executive Chairman, commented: " I am very proud
to present a transformative set of Half Year results containing our
maiden profit that reflects the years of determined effort by the
Board of Directors, advisers and valued technical consultants with
an unwavering objective to grow Union Jack into a mid-tier
company.
"Our Operators also deserve great credit for their commitment in
progressing our principal projects with the support of their Joint
Venture partners.
"Union Jack is currently in a strong financial position with a
combination of consistent cash flows, principally from our flagship
asset at Wressle, plus significant future upside potential from our
balanced portfolio, giving Union Jack the confidence to support a
forward drilling and development programme on our key projects that
is being planned for the remainder of 2022.
"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.
"We look forward to the remainder of 2022 and reporting on a
number of fronts, including our dividend and share buyback policy,
the GaffneyCline Report and RPS Competent Persons Report for
Wressle and West Newton respectively, both of which I am confident
will confirm the future operational and financial strengths of
these two flagship projects.
"The future of Union Jack remains bright."
For further information please contact the following:
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
Shore Capital
Joint Broker
Toby Gibbs
Iain Sexton +44 (0)20 7408 4090
In accordance with the "AIM Rules - Note for Mining and Oil and
Gas Companies", the information contained within this announcement
has been reviewed by Graham Bull, Non-Executive Director, who has
over 46 years of international oil and gas industry exploration
experience.
CHAIRMAN'S STATEMENT
I am pleased to present this Half Yearly Report for the six
months ended 30 June 2022 to the shareholders of the Company.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
-- Maiden profit of GBP2,034,086 for the six-month period ended 30 June 2022
-- Revenue of GBP4,384,254 for the six-month period ended 30 June 2022
-- Cash balances, receivables and liquid investments stand at
approximately GBP10,500,000 as at 6 September 2022
-- Company remains debt free
-- Approvals for the Wressle Field Development Plan and licences
for the production phase through to 2039 received from the North
Sea Transition Authority ("NSTA")
-- Wressle currently amongst the most productive conventional
producing UK onshore oilfields and poised to become second ranked
only to the prolific Wytch Farm
-- To date, our flagship project at Wressle has produced over
225,000 barrels of high-quality oil (gross) with zero water cut
-- GaffneyCline Reserves and Resource Report, Illustrative
Production Profile and Upside Potential of the Wressle Field are
expected be published during September 2022
-- Planning granted at West Newton for both A and B site works and three-year permit extension
-- Joint Venture partners progressing with a conceptual
development plan for West Newton, predominantly as a major gas
producer
-- First horizontal appraisal well at West Newton planned for 2023
-- Completion of Competent Person's Report, compiled by RPS
Group covering West Newton and other significant prospects within
PEDL183 expected by end of Q3 2022
-- In March 2022, a cash payment of GBP2,083,333 was made to
Calmar LP in respect of the early settlement of the deferred
consideration for the past purchases of an additional 25% of
interest in PEDL180 and PEDL182 containing the Wressle development,
bringing the Company's economic interest to 40%
-- In August 2022, the High Court approved a Capital Reduction
creating additional distributable reserves to the value of
GBP21,553,557, providing the Company with flexibility to deliver
future shareholder returns in the form of dividends and/or share
buybacks
OVERVIEW
The Half Year ended 30 June 2022 financial results and maiden
profit are transformational when compared to those of the
corresponding period for 2021.
Due to the consistent monthly cash flow, principally from our
flagship Wressle development, revenues have risen from GBP241,467
to GBP4,384,254, enabling the Company to announce a maiden profit
of GBP2,034,086 for the period.
Our cash balances, receivables and liquid investments are
approximately GBP10,500,000 as at 6 September 2022 and we expect
this figure to continue to grow significantly during the next six
months and beyond.
Looking ahead, the Company is fully funded for a number of
future potential wells over our key projects at West Newton,
Biscathorpe and Keddington, along with other future development
programmes required at our Wressle flagship producing asset, all
whilst remaining debt free.
A significant milestone in the Company's development during the
reporting period was the approval by the NSTA of the Wressle Field
Development Plan and the granting of licences for the production
phase, which will continue through to 2039.
In addition to the ongoing Wressle engineering and financial
viability investigations for the future gas monetisation
development and ongoing site upgrades, the second half of 2022 is
seeing considerable activity from the Operators of our projects
involving the planning and designing of key wells to be drilled at
West Newton and Keddington and potentially at Biscathorpe during
2023.
The corporate and financial events of the Company during the
first half of 2022 are documented later in this report, however,
the granting of a Capital Reduction exercise by the High Court at
the end of August 2022, now effective, allows the Company to be
able to pay a dividend and /or activate a share-buy-back
programme.
PEDL180 AND PEDL182 WRESSLE OILFIELD DEVELOPMENT (40%)
Wressle is located in Lincolnshire on the Western Margin of the
Humber Basin.
The Wressle-1 well discovery was defined on proprietary 3-D
seismic data. The structure is on trend with the producing Crosby
Warren oilfield and the Broughton B-1 oil discovery, both to the
immediate northwest, and the Brigg-1 discovery to the southeast.
All these wells contain oil in various different sandstone
reservoirs within the Upper Carboniferous succession.
Wressle has quickly exceeded our pre-production expectations of
500 barrels of oil per day and continues to outperform since the
resumption of production during August 2021, following the
successful proppant-squeeze and coiled tubing operation.
Instantaneous rates of over 1,000 bopd have been achieved and
restrictions on production rates are being addressed through
ongoing modifications to site facilities and progressive upgrades
to the gas incineration system which have seen the installation of
a larger capacity enclosed ground incineration unit. Further works
are planned in the near future, designed to improve site facilities
that will allow an increase in production in due course.
Production from Wressle is currently averaging 300 bopd from the
Ashover Grit reservoir net to Union Jack, based on our 40%
interest.
Since the commencement of production over 225,000 barrels of
high-quality oil has been produced and sold with zero water
cut.
Wressle's gas monetisation is another priority project that is
in the planning phase. The future ability to process and sell gas
from Wrestle will also allow oil production to be increased. This
will also be important in respect of any future development plan
for the Penistone Flags reservoir where significant contingent oil
resources exist.
During May 2022, the NSTA approved the Wressle Field Development
Plan and the licences have now entered their production phase,
which will continue through to 2039.
During the remainder of 2022 and beyond, assuming receipt of
regulatory approvals, ongoing major development works at Wressle
will include:
-- Completion of the installation of the permanent production facilities
-- Implementation of gas development to monetise and provide optimum oil production
-- Advancement of the development plan and consenting process to
enable production from the Penistone Flags reservoirs
Environmental monitoring throughout the Wressle operation has
shown no measurable impact on surface or groundwater quality, no
related seismicity and that noise has been contained within the
permitted levels.
Union Jack has independently commissioned GaffneyCline, an
international energy consultancy, to prepare a Reserves and
Contingent Resource Report, Illustrative Production Profile and
Upside Potential in respect of Wressle. The GaffneyCline report is
expected to be published during September 2022.
PEDL183 WEST NEWTON AND FUTURE PROGRAMME (16.665%)
PEDL183 is located onshore UK, north of the River Humber, also
encompassing the town of Beverley, East Yorkshire. The licence is
within the Western Sector of the Southern Zechstein Basin.
Throughout 2021, the focus was on operations and data
acquisition from the West Newton A and B discoveries and advancing
a forward plan for development.
The data gathered during 2021 and post Extended Well Testing has
been thoroughly analysed and the Joint Venture partners are now in
the process of progressing with a conceptual development plan for
West Newton. This follows completion of a significant body of work,
including scoping exercises and modelling carried out both
internally and externally by a number of specialist international
technical consultants.
Crucially, analysis completed by CoreLab demonstrated actual
fluid flow through many of the reservoir samples, supporting the
view that optimised development well designs could deliver good
hydrocarbon productivity by the drilling of horizontal wells.
The results of this analysis are highly encouraging and indicate
the potential for good well productivity from proposed new
horizontal wells that underpin strong economic returns on the West
Newton project.
The Joint Venture partners intend to drill efficient horizontal
wells in a manner that phases the development CAPEX cost,
significantly de-risking the project's financial profile.
Immediate next steps include:
-- Completion of a Competent Persons Report compiled by RPS expected by the end of Q3 2022
-- First horizontal appraisal well planned for 2023 that will
materially de-risk the project and will then allow a decision on a
field development plan to be taken
In preparation for a decision on a potential development of the
West Newton discoveries, the Operator, Rathlin Energy UK Limited
submitted a revised planning application for the development of the
A site, to the East Riding of Yorkshire Council ("ERYC"). This was
approved by the ERYC Planning Committee by a confidence building 10
to 1 majority during March 2022.
The approved development plan includes the drilling, completion
and associated production from an additional four wells from the
current surface location, plus an extension of the permit period at
the West Newton B site for an additional three years.
Given the exploration prospect inventory and perceived
perspectivity within the Greater West Newton licence area, there is
also excellent potential for additional future gas discoveries
which could be tied into the West Newton infrastructure.
West Newton is also located in an area that provides access to
both significant and relevant regional infrastructure and, with
substantial additional exploration potential within the Greater
West Newton licence area, a future development at West Newton
could, in theory, deliver significant volumes of onshore low-carbon
sales gas into the UK's currently strained energy market.
PEDL253 BISCATHORPE (45%)
PEDL253 is situated within the proven hydrocarbon fairway of the
South Humber Basin and is on-trend with the Keddington oilfield,
Saltfleetby gasfield and the Louth and North Somercoates
Prospects.
While drilling the B-2 well during 2019, there were hydrocarbon
shows indicated by elevated gas readings and sample fluorescence,
observed over the entire interval from the top of the Dinantian to
the Total Depth of the well, with a total of 68 metres being
interpreted as oil-bearing in the petrophysical analysis.
A geochemical analysis of the gas data and hydrocarbons
extracted from drill cuttings was commissioned by the Joint Venture
participants and executed by APT. The results of this analysis
indicate a hydrocarbon column of 33-34 API gravity oil in the
Dinantian Carbonate and a proven live oil column, comparable with
that produced at the nearby Keddington oilfield.
Following the results of APT exercise, a probabilistic
assessment of the Dinantian oil volumes was modelled with
volumetric assumptions as being "filled to spill" with resulting
gross Mean Stock Tank Oil in Place ("STOIIP") calculated to be 24.3
mmbo with an upside case of 36 mmbo.
In addition to the Dinantian, there remains the original target
within the Westphalian, where evidence for a thickened sandstone
reservoir exists.
The Operator has estimated, in accordance with the PRMS
guidelines, that the gross Mean Prospective Resources within the
Westphalian are 3.95 mmbo, with an upside case of 6.69 mmbo.
Economic modelling demonstrates that the Westphalian target is
economically robust, especially in the current oil price
environment.
Union Jack's technical team believes that Biscathorpe remains
one of the largest unappraised onshore discoveries within the
UK.
In November 2021, a planning application for a side-track
drilling operation, associated testing and long-term production at
the Biscathorpe site was refused by the Lincoln County Council
Planning Committee even though positively recommended for approval
by the Planning Officer.
An appeal was submitted to the Planning Inspectorate ("PINS") on
behalf of the Joint Venture partners during April 2022.
The appeal has been validated, an inspector appointed and the
hearing is planned to take place on 11 October 2022.
PEDL005(R) KEDDINGTON (55%)
The producing Keddington oilfield is located along the highly
prospective East Barkwith Ridge, an east-west structure high on the
southern margin of the Humber Basin.
A subsurface review conducted by the Operator has highlighted a
viable target to the east of the field, with up to 180,000 barrels
of incremental production.
With planning permission already in place, Keddington presents
an opportunity to increase oil production via a relatively
inexpensive development side-track from one of the existing wells.
In addition, near-field exploration targets exist at Keddington
South and Louth, with Mean Prospective resources of 635,000 and
600,000 barrels of oil in place respectively.
The Keddington 3-D seismic is currently being re-processed with
a view to selecting a firm side-track location and drill target to
be drilled during H1 2023.
PEDL241 NORTH KELSEY (50%)
North Kelsey is a conventional oil exploration prospect, on
trend with and analogous to the Wressle oilfield which lies
approximately 15 kilometres to the northwest. The prospect has been
mapped from 3-D seismic data and has the potential for oil in four
stacked Upper Carboniferous reservoir targets.
The Operator estimates that gross Prospective Resources range
from 4.66 to 8.47 mmbo.
During August 2022, the Operator submitted an appeal on behalf
of the Joint Venture, against the refusal of an extension of time
to the existing planning permission by Lincolnshire County Council
for the drilling and testing of a conventional exploration well at
the North Kelsey site.
The appeal documentation has been submitted to the PINS and the
appeal will now be validated by PINS before an inspector is
appointed and a timetable defined. The expectation is that the
appeal will be decided under the Written Representation Procedure,
a process whereby PINS will consider written evidence from the
appellant, the local planning authority and any other interested
parties.
CLAYMORE PIPER COMPLEX ROYALTY UNITS (2.5%)
The Company holds a 2.5% royalty interest over the Claymore,
Piper and Scapa oilfields (the "Complex") located in the Central
North Sea.
The Company benefits from an indirect contractual exposure to
North Sea oil and gas production revenues without any ongoing
capital investment, decommissioning or joint venture operating
costs.
The Company has the right to receive income from the Complex for
the rest of its operating life, estimated independently to be at
least for a further 15 years, at no additional capital or operating
cost.
The royalty has accrued approximately twice the monies paid for
the acquisition during Q3 2021. These monies are being held in
escrow by the Operator, Repsol Sinopac, until a Royalty Manager is
appointed. Union Jack is in discussion with the other third-party
royalty holders and it is hoped that the Company will be in a
position to receive these monies during late 2022 or early
2023.
Union Jack management view this investment as an attractive,
cash-generating, high-yielding instrument, that is consistent with
Union Jack's wider strategy and objective to invest in attractive
oil and gas investments, including alternative financial
instruments within the wider UK hydrocarbon sector that generate
above average returns.
NET ZERO CARBON POLICY
The UK is committed by law to reach Net Zero carbon emissions by
2050. Union Jack, by its own policy and strategy are not the
operator of any of its projects. Therefore, the Company will only
work with operators who have a firm commitment to safety,
environmental and social responsibility in all aspects of their
operations.
Regardless of the fact that the Company has chosen not to be an
operator, we are subject to the same scrutiny as any other
hydrocarbon producer.
We remain pro-active in the quest for Net Zero and to
demonstrate this Union Jack commissioned GaffneyCline, an
international energy consultancy to conduct Carbon Intensity
studies on Biscathorpe (PEDL253) and West Newton (PEDL183) two of
our several core projects. The results of these studies were highly
encouraging with GaffneyCline concluding that both projects
obtaining an AA rating for Carbon Intensity.
Union Jack's focus is to minimise emissions and the carbon
footprint generated by its hydrocarbon interests in the most
efficient means possible, whilst continuing to contribute
positively to the growing demand for energy and hydrocarbon
products in the supply chain.
As the demand for energy increases as the global economy
recovers, hydrocarbons will continue to play an important role in
ensuring the energy security of the UK.
Union Jack's development interests are located close to areas
with a high demand for energy and as a consequence management
believes that locally produced hydrocarbons provide the benefit of
displacing, to some extent, imported hydrocarbons.
CORPORATE AND FINANCIAL
The significant revenues received from Wressle alone during the
period of GBP4,384,254 have already transformed the financial
position of Union Jack and significantly improved its Balance
Sheet.
A maiden profit of GBP2,034,086 has been declared for the
period, with cash balances, receivables and liquid investments of
approximately GBP10,500,000 as at 6 September 2022, a sum that
increases daily, principally as a result of Wressle's consistent
production at a constrained rate from the productive Ashover Grit
reservoir.
In addition, the Company remains debt free.
In March 2022, a cash payment of GBP2,083,333 was made to Calmar
LP in respect of the early settlement of the deferred consideration
for the past purchases of an additional 25% interest in PEDL180 and
PEDL182 containing the Wressle development, bringing the Company's
economic interest to 40%.
In August 2022, the High Court approved a Capital Reduction
creating additional distributable reserves to the value of
GBP21,553,557, providing the Company with flexibility to deliver
future shareholder returns in the form of dividends and/or share
buybacks.
Following this period of strong growth, which has transformed
Union Jack into a cash generative and profitable producer with a
robust Balance Sheet and no debt, in July 2022, we added Shore
Capital to our roster of advisers as a Joint Broker alongside SP
Angel, our Broker and Nominated Adviser. We are confident that this
appointment will further enhance and broaden the Company's profile
amongst institutional investors in particular.
I would like to take this opportunity to thank our shareholders,
old and new for their continued support, as well as my colleagues,
co-directors and advisers who all provide excellent advice and
continue to champion our objective to grow Union Jack into a
mid-tier oil and gas company and a major participant in the UK
onshore hydrocarbon arena.
OUTLOOK
I am very proud to present a transformative set of Half Year
results containing our maiden profit that reflects the years of
determined effort by the Board of Directors, advisers and valued
technical consultants with an unwavering objective to grow Union
Jack into a mid-tier company.
Our Operators also deserve great credit for their commitment in
progressing our principal projects with the support of their Joint
Venture partners.
Union Jack is currently in a strong financial position with a
combination of consistent cash flows, principally from our flagship
asset at Wressle, plus significant future upside potential from our
balanced portfolio, giving Union Jack the confidence to support a
forward drilling and development programme on our key projects that
is being planned for the remainder of 2022.
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.
We look forward to the remainder of 2022 and reporting on a
number of fronts, including our dividend and share buyback policy,
the GaffneyCline Report and RPS Competent Persons Report for
Wressle and West Newton respectively, both of which I am confident
will confirm the future operational and financial strengths of
these two flagship projects.
The future of Union Jack remains bright.
David Bramhill
Executive Chairman
7 September 2022
Unaudited income Statement
FOR THE SIX MONTHSED 30 JUNE 2022
Year
Six Months Six Months ended
ended ended 31 December
30 June 30 June 2021
2022 Unaudited 2021 Unaudited Audited
Notes GBP GBP GBP
================================ ====== ================ ================== =================
4,384,254
(514,824) 241,467 (183,204) 1,894,875
Revenue (1,035,801) (119,058) (377,153)
Cost of sales - operating
costs (735,160)
Cost of Sales - depreciation
Gross profit / (loss) 2,833,629 (60,795) 782,562
-------------------------------- ------ ---------------- ------------------ -----------------
Administrative expenses (789,007) (828,562) (1,740,962)
Impairment - (251) (156,995)
Total administrative
expenses (789,007) (828,813) (1,897,957)
-------------------------------- ------ ---------------- ------------------ -----------------
2,044,622 (889,608) (1,115,395)
Operating profit / (loss) 52,222 56,162 112,611 149,771
Finance income 42,023 -
Royalty income
-------------------------------- ------ ---------------- ------------------ -----------------
2,138,867 (833,446) (853,013)
Profit / (loss) before
taxation 3 - - -
Taxation- 3 (104,781) - -
Energy Profits Levy
-------------------------------- ------ ---------------- ------------------ -----------------
Profit / (loss) for the
period / year 2,034,086 (833,446) (853,013)
-------------------------------- ------ ---------------- ------------------ -----------------
Attributable to:
Equity shareholders of
the Company 2,034,086 (883,446) (853,013)
-------------------------------- ------ ---------------- ------------------ -----------------
Profit / (loss) per share
Basic and diluted loss - -
per share (pence) 2 1.80 (0.84) (0.83)
-------------------------------- ------ ---------------- ------------------ -----------------
Unaudited Statement of Comprehensive Income
FOR THE SIX MONTHSED 30 JUNE 2022
Year
Six Months Six Months ended
ended ended 31 December
30 June 30 June 2021
2022 Unaudited 2021 Unaudited Audited
GBP GBP GBP
============================= ================ ================ =============
Profit / (loss) for the
period / year 2,034,086 (833,446) (853,013)
Items which will not
be reclassified
subsequently to profit
/ (loss)
Other comprehensive profit
/ (loss) 371,230 (5,688) 54,420
------------------------------ ---------------- ---------------- -------------
Total comprehensive profit
/ (loss)
for the period / year 2,405,316 (839,134) (798,593)
------------------------------ ---------------- ---------------- -------------
Unaudited Balance Sheet
AS AT 30 JUNE 2022
As at
As at As at 31 December
30 June 30 June 2021
2022 Unaudited 2021 Unaudited Audited
Notes GBP GBP GBP
================================= ====== ================ ================ =============
Assets
Non-current assets 8,525,373
Exploration and evaluation
assets 8,866,419 7,448,493 7,575,525
Property, plant and equipment 6,779,563 6,802,485 291,518
Investments 662,748 225,020
--------------------------------- ------ ---------------- ---------------- -------------
16,308,730 14,475,998 16,392,416
Current assets
Inventory 19,246 15,581
Loan receivables - 1,027,490 8,829
Trade and other receivables 2,124,110 489,898 1,028,110
Cash and cash equivalents 6,503,962 4,672,508 1,065,812
5,977,541
--------------------------------- ------ ---------------- ---------------- -------------
8,647,318 6,205,477 8,080,292
--------------------------------- ------ ---------------- ---------------- -------------
Total assets 24,956,048 20,681,475 24,472,708
--------------------------------- ------ ---------------- ---------------- -------------
Liabilities
Current liabilities
Trade and other payables 383,561 2,379,596 2,390,603
--------------------------------- ------ ---------------- ---------------- -------------
Non-current liabilities
Provisions 1,867,061 929,710 1,876,758
--------------------------------- ------ ---------------- ---------------- -------------
Total liabilities 2,250,622 3,309,306 4,267,361
--------------------------------- ------ ---------------- ---------------- -------------
Net assets 22,705,426 17,372,169 20,205,347
--------------------------------- ------ ---------------- ---------------- -------------
Capital and reserves
attributable
to the Company's equity
shareholders
Share capital 4 7,507,076 6,825,258 7,507,076
Share premium 21,528,077 19,522,379 21,528,077
Share-based payment reserve 733,350 533,467 638,586
Accumulated deficit (7,063,077) (9,508,935) (9,468,392)
--------------------------------- ------ ---------------- ---------------- -------------
Total equity 22,705,426 17,372,169 20,205,347
--------------------------------- ------ ---------------- ---------------- -------------
Unaudited Statement of Cash Flows
FOR THE SIX MONTHSED 30 JUNE 2022
Six months Six months Year
ended ended ended
30 June 2022 30 June 31 December
Unaudited 2021 Unaudited 2021
GBP GBP Audited
GBP
=============================== ============== ================ ==============
Cash outflow from operating
activities 1,006,040 (995,974) (646,726)
------------------------------- -------------- ---------------- --------------
Cash flow from investing
activities
Purchase of intangible
assets (330,375) (1,101,543) (2,277,224)
Purchase of property, (461,541)
plant and equipment (197,599) (93,610) (1,022,055)
Purchase of investments - - (100,000)
Loan capital returned 1,000,000 - -
Treasury account (1,000,000) 56,162 -
Interest received 48,355 67,016
------------------------------- -------------- ---------------- --------------
Net cash used in investing
activities (479,619) (1,600,532) (3,332,263)
------------------------------- -------------- ---------------- --------------
Cash flow from financing
activities - - 3,000,000
Proceeds on issue of
new shares - - (312,484)
Cost of issuing new shares
------------------------------- -------------- ---------------- --------------
Net cash generated from
financing activities - - 2,687,516
------------------------------- -------------- ---------------- --------------
Net increase / (decrease)
in
cash and cash equivalents 526,421 (2,596,506) (1,291,473)
------------------------------- -------------- ---------------- --------------
Cash and cash equivalents
at beginning of period
/ year 5,977,541 7,269,014 7,269,014
------------------------------- -------------- ---------------- --------------
Cash and cash equivalents
at end of period / year 6,503,962 4,672,508 5,977,541
------------------------------- -------------- ---------------- --------------
Notes to the Unaudited Financial Information
FOR THE SIX MONTHSED 30 JUNE 2022
1 Accounting Policies
Basis of Preparation
These financial statements are for the six month period ended 30
June 2022.
The information for the year ended 31 December 2021 does not
constitute statutory financial statements as defined in section 434
of the Companies Act 2006.
A copy of the statutory financial statements for that period has
been delivered to the Registrar of Companies. The Auditor's Report
was not qualified, did not include a reference to any matters to
which the Auditor drew attention by way of emphasis without
qualifying the report and did not contain statements under section
498(2) or (3)
of the Companies Act 2006.
The interim financial statements for the six months ended 30
June 2022 are unaudited.
The interim financial information in this report has been
prepared in accordance with International Financial Reporting
Standards ("IFRS") applied in accordance with the provisions of the
Companies Act 2006.
The financial statements have been prepared under the historical
cost convention. The principal accounting policies have been
consistently applied to all periods presented.
Significant Accounting Policies
The accounting policies and methods of computation followed in
the interim financial statements are consistent with those as
published in the Company's Annual Report and Financial Statements
for the year ended 31 December 2021.
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 interim
financial statements, a reasonable expectation that the Company has
adequate resources to continue in operational existence for the
foreseeable future and continue to adopt the going concern basis of
accounting.
2 Profit / (Loss) per Share Attributable to the Equity Shareholders of the Company
Basic profit / (loss) per share is calculated by dividing the
earnings attributable to ordinary shareholders by the weighted
average number of ordinary shares outstanding during the
period.
Given the Company's reported loss for the prior period and their
insignificant number, warrants are not taken into account when
determining the weighted average of ordinary shares in issue during
the period and therefore the basic and diluted earnings per share
are the same.
Basic profit / (loss) Six months Six months Year
per share ended ended ended
30 June 30 June 31 December
2022 2021 2021
pence pence pence
============================= ============ ============ =============
Profit / (loss) per share
from continuing operations 1.80 (0.84) (0.83)
----------------------------- ------------ ------------ -------------
The profit / (loss) and weighted average number of ordinary
shares used in the calculation of basic earnings per share
are as follows:
-------------------------------------------------------------------------
Six months Year
Six months ended ended
ended 30 June 31 December
30 June 2021 2021
2022 GBP GBP
GBP
============================= ============= ============ =============
Profit / (loss) used in
the calculation of total
basic and diluted earnings
per share 2,034,086 (833,446) (853,013)
----------------------------- ------------- ------------ -------------
Six months Year
Number of Shares ended Six months ended
30 June ended 31 December
2021 30 June 2020
2020
============================= ============= ============ =============
Weighted average number
of ordinary
shares for the purposes
of basic and
diluted earnings per share 112,715,896 99,079,532 102,628,722
----------------------------- ------------- ------------ -------------
3 Taxation
There was no tax charge for the half yearly period due to
brought forward losses incurred. A deferred tax asset in respect of
trading losses and share-based payments has not been recognised due
to the uncertainty of timing of future tax payments. The trading
tax losses are recoverable against suitable future trading profit,
with the exception of the Energy Profits Levy described below.
From 26 May 2022 an Energy Profits Levy of 25% will be applied
to all relevant profit made by the Company.
4 Share Capital
At 30 June 2022, there were 112,715,896 ordinary shares of a
nominal value of 5 pence in issue.
At 30 June 2022, there were 831,680,400 deferred shares of 0.225
pence nominal value in issue.
At 30 June 2022, there were 30,373 warrants outstanding and
exercisable.
During the period under review, nil warrants expired.
5 Events after the Balance Sheet Date
On 5 July 2022, Raymond Godson, Non -Executive Director of the
Company exercised options over 150,000 ordinary shares of 5 pence
each at a strike price of 22 pence each. Raymond Godson paid
GBP33,000 in respect of his exercise of these options. Following
this exercise, Raymond Godson is the beneficial owner of 392,058
ordinary shares, representing 0.35% of the enlarged total issued
share capital of 112,865,896 ordinary shares.
During July 2022, Shore Capital were appointed as Joint Broker
to the Company.
During August 2022, the Operator of PEDL241, containing the
North Kelsey Prospect submitted an appeal on behalf of the Joint
Venture partners against the refusal of an extension of time to the
existing planning permission by Lincolnshire County Council for the
drilling and testing of a conventional exploration well at the
North Kelsey site.
During August 2022, the High Court of Justice approved a Capital
Reduction and as such is now effective, creating additional
reserves to the value of GBP21,553,557, allowing the Company with
further flexibility to deliver shareholder returns in the form of
dividends and/or share buybacks. In order to comply with the
Companies Act 2006, ("the Act") interim accounts have been filed at
Companies House. The Balance Sheet at 1 September 2022 is attached
to this report as an Appendix. The Accounts have been prepared for
the purpose of sections 836 and 838 of the Companies Act 2006. The
Accounts are abridged and unaudited but are otherwise prepared on a
consistent basis and following the same accounting principles as
the annual accounts for the year ended 31 December 2021. The
interim accounts do not constitute statutory accounts within the
meaning of sections 434 (3) of the Companies Act 2006. Statutory
accounts for the year ending 31 December 2021 were published in
Union Jack Oil plc's Annual Report and delivered to the Registrar
of Companies in England and Wales. The Auditor's Report on those
accounts was unqualified, did not include a reference to any
matters to which the auditor drew attention by way of emphasis
without qualifying the report, and did not contain any statement
under sections 498(2) or (3) of the Companies Act 2006.
6 Related Party Transactions
Charnia Resources (UK), an unincorporated entity owned by Graham
Bull, non-executive director, received from the Company the sum of
GBP60,187 during the period under review in respect of consulting
fees. GBP12,011 was outstanding at the end of the period.
Jayne Bramhill, spouse of David Bramhill, received from the
Company the sum of GBP6,000 during the period under review in
respect of IT maintenance and administration costs.
7 Copies of the Half Yearly Report
A copy of the Half Yearly Report is now available on the
Company's website www.unionjackoil.com.
APPENDIX
Unaudited Balance Sheet
AS AT 1 SEPTEMBER 2022
As at
As at 31 December
1 September 2021
2022 Unaudited Audited
GBP GBP
======================================== ==== ================ =============
Assets
Non-current assets 8,525,373
Exploration and evaluation
assets 8,982,058 7,575,525
Property, plant and equipment 6,585,001 291,518
Investments 662,748
---------------------------------------------- ---------------- -------------
16,229,807 16,392,416
Current assets
Inventory 19,246
Loan receivables - 8,829
Trade and other receivables 2,024,501 1,028,110
Cash and cash equivalents 7,670,930 1,065,812
5,977,541
--------------------------------------------- ---------------- -------------
9,714,677 8,080,292
--------------------------------------------- ---------------- -------------
Total assets 25,944,484 24,472,708
---------------------------------------------- ---------------- -------------
Liabilities
Current liabilities
Trade and other payables 720,964 2,390,603
---------------------------------------------- ---------------- -------------
Non-current liabilities
Provisions 1,867,061 1,876,758
---------------------------------------------- ---------------- -------------
Total liabilities 2,588,025 4,267,361
---------------------------------------------- ---------------- -------------
Net assets 23,356,459 20,205,347
---------------------------------------------- ---------------- -------------
Capital and reserves attributable
to the Company's equity shareholders
Share capital 7,514,576 7,507,076
Share premium - 21,528,077
Share-based payment reserve 777,939 638,586
Retained earnings / (losses) 15,063,944 (9,468,392)
---------------------------------------------- ---------------- -------------
Total equity 23,356,459 20,205,347
---------------------------------------------- ---------------- -------------
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