[source: Union Jack Oil]

Union Jack Oil (UJO ) has reported material landmark net revenues of US$6 million from the Wressle hydrocarbon development since the firm recommenced production in August 2021.

The Wressle hydrocarbon development, in which the UK focused onshore hydrocarbon production, development and exploration firm holds a 40% interest, is located in licences PEDL180 and PEDL182 in North Lincolnshire on the western margin of the Humber Basin.

Today, Union Jack Oil told investors that the well at the producing hydrocarbon development continues to produce under natural flow with zero water cut while site upgrades are ongoing.

As at 23 May 2022, cash balances and near-term receivables stand at in-excess of £7.7m meaning that the company is covered for all G&A, OPEX and contracted or planned CAPEX costs, including any budgeted drilling activities for at least the next 12 months and debt free.

Executive Chairman, David Bramhill commented: “Another period of stellar performance from the Wressle-1 development has been achieved. Union Jack is now on a material growth trajectory which augurs well for the future of the Company and its shareholders.”

View from Vox

As of today, cash balances and near-term receivables stand at in-excess of £7.7m - that’s up by around £0.2m as at 9 May 2022 when cash and near-term receivables stood at £7.545m.

In the year to 31 December 2021 and to date, UJO says it has transformed financially with substantial revenues and positive indications. In particular, revenues received from Wressle have transformed its financial well-being and ‘significantly strengthened’ its balance sheet.

Looking ahead in 2022 and beyond, Union Jack anticipates that hydrocarbons will continue to play an important part in ensuring the energy security of the United Kingdom, particularly as the global demand for energy increases post COVID-19 and the global economy recovers.

UJO’s progress, along with a robust oil price and strong Wressle oil production, has generated solid revenues and underpins the Board’s expectation of ongoing future material cash flows.

As a result, the Board recently initiated plans for a Capital Reduction to allow for the payment of a dividend or to implement a share-buy-back programme to reward the firm’s shareholders.

Notably, the Company is also now fully funded for all G&A, OPEX, and contracted or planned CAPEX costs, including any budgeted drilling activities, for at least the next 12 months. The stock’s value has increased by over 50% in the past three months, reaching highs of 31p.

Follow News & Updates from Union Jack Oil: