Union Jack reaches 'landmark' $9m net revenue from Wressle

Union Jack Oil announced on Friday that “material landmark” net revenues of $9m have been achieved from the Wressle development, on 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, adding that the $9m net to Union Jack was achieved since the restart of production on 19 August last year.

It said the well was continuing to produce under natural flow, with zero water cut.

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

As of 25 August, cash balances and short term receivables stood at more than £9.46m, while site upgrades were ongoing, as the company remained debt-free.

“The revenues of in excess of $9m from the Wressle development continue to have a positive impact on the company's balance sheet,” said executive chairman David Bramhill.

“Since the last production update published during July, another impressive production performance from the Wressle-1 well has been recorded and the trend remains positive.

“Cash balances are expanding significantly 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.”

Union Jack said it would report a “positive set” of half-year results for the six months ended 30 June, recording a maiden profit, in mid-September.

At 1101 BST, shares in Union Jack Oil were up 3.13% at 31.71p.

Reporting by Josh White at Sharecast.com.