Union Jack Oil reaches $14m revenue at Wressle

Union Jack Oil, a UK onshore hydrocarbon producer, developer, and explorer, announced a significant milestone on Monday, with revenues exceeding $14m from the Wressle development in North Lincolnshire.

The AIM-traded company holds a 40% economic interest in the development, situated within licences PEDL180 and PEDL182 on the western margin of the Humber Basin.

Wressle production had been under natural flow with zero water cut, and since the resumption of production in August 2021, Union Jack said it had been generating landmark net revenues.

The firm said it continued to be cash flow positive, covering all general and administrative, operating expenses, and contracted or planned capital expenditure costs, including any drilling activities for at least the next year.

As at 24 March, Union Jack's cash balances, short-term receivables and investments totalled more than £10.5m, as it remained debt-free.

“Revenues from Wressle continue to bolster the company's balance sheet,” said executive chairman David Bramhill.

“Since the last production update, another consistent and impressive production performance from the Wressle-1 well has been recorded and the trend as seen throughout 2022 and the start of 2023 remains positive.

“Encouragingly, our significant cash balance continues to expand on a monthly basis, and we are funded for general and administrative, operational, and contracted or planned capital expenditure costs, including any drilling activities for at least the next 12 months.”

At 1400 BST, shares in Union Jack Oil were up 2.04% at 25p.

Reporting by Josh White for Sharecast.com.