Union Jack Oil reaches $7m revenue since Wressle re-start

Union Jack Oil announced on Monday that material landmark net revenues of $7m (£5.71m) have been achieved from the Wressle hydrocarbon development, located within licences PEDL180 and PEDL182 in North Lincolnshire, on the western margin of the Humber Basin.

The AIM-traded firm holds a 40% economic interest in the development.

It confirmed that $7m in revenues had generated to Union Jack since the restart of production on 19 August.

Current daily production figures continued to be an average constrained flow-rate of 750 barrels of oil per day, “well in excess” of the prognosed 500 barrels per day from the Ashover Grit reservoir.

The well was continuing to produce under natural flow, with zero water cut.

Union Jack said it remained cash flow positive, covering all general and administrative, operational, and contracted or planned capital expenditure costs, including any budgeted drilling activities for at least the next 12 months.

As of 20 June, cash balances and short term receivables stood at more than £8.4m.

Union Jack said it expected to report a maiden profit in its upcoming unaudited half-year results ending 30 June, adding that it was debt-free.

“The ongoing excellent operational and financial performance at Wressle continues to bolster the company's cash position, balance sheet and income statement,” said executive chairman David Bramhill.

“Net revenues from Wressle have now exceeded $7m and, as a result of this exceptional performance, plus revenue contributions from the Keddington oilfield, the Fiskerton Airfield oilfield and North Sea Royalties.

“The board now expects to report a maiden profit in the forthcoming unaudited half year results ending 30 June.”

At 1253 BST, shares in Union Jack Oil were up 1.82% at 28p.

Reporting by Josh White at Sharecast.com.