Today, Union Jack Oil (UJO ) has reported material landmark net revenues from the Wressle hydrocarbon development in North Lincolnshire on the western margin of the Humber Basin.

Since the re-commencement of production at the development, in which Union Jack holds a 40% economic interest, back in August 2021, the company has made US$3m in revenues.

The London-listed UK-focused onshore hydrocarbon exploration company outlined that current daily production figures at the development site range from 600 to in-excess of 700 barrels of oil per day from the Ashover Grit reservoir, constrained on a restricted choke. 

The well continues to produce under natural flow with zero water cut while staged site upgrades are ‘progressing well,’ Union Jack told investors, adding that its business ‘continues to be cash flow positive covering all corporate, administrative and project operating costs.’

As at 21 February 2022, Union Jack Oil held cash balances of £6.1m and receivables of £2.07m. Oil revenues to 31 December 2021 are expected to be in-excess of £1.89m, up from £0.158m reported in the prior year. The company added that it continues to be debt free. 

Shares in Union Jack Oil were trading 11.11% higher at 22.5p during afternoon trading.

As a result of increasing revenues and the effect on cash balances, Union Jack detailed that it intends to make an early settlement to Calmar LP of £2,080,000, on or around 1 March 2022.

This will be in respect of previously reported acquisitions of 25% of PEDL180 and PEDL182 containing the Wressle development and will eliminate all major current trade payables.

Executive Chairman of Union Jack, David Bramhill, commented: “The revenues of in-excess of US$3,000,000 to Union Jack from Wressle, whilst under test production, are highly positive for the Company, which remains in robust financial health as the above figures illustrate.”

He added: “We believe that Wressle holds significant further upside which will be demonstrated over the foreseeable future, and we look forward to reporting on progress in respect of site upgrades and achieving optimum production rates in due course.”

In addition to the Wressle development, Union Jack has three other cash generating projects. 

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