Union Jack Oil well positioned to seize on 'dislocation' in oil and gas industry

Bramhill's comments came as the company reported a £256,038 loss for the six months to 30 June, while net assets rose 58.3% year-on-year to £3.8m.

In a statement released on Monday, the London-listed group, which is still to generate any revenue, added it ended the period debt free and with £2.5m of cash resources available.

“The company's strategy is to continue focusing on its low-cost UK onshore portfolio and similar opportunities, with a view to generating additional value for its shareholders,” Bramhill said.

“To that end the company has already utilised its robust balance sheet position to increase its interests in drill-ready projects at Biscathorpe and North Kelsey and to acquire an interest in the producing Keddington oilfield at an attractive entry point post period end.”

The group said that its current planned drill programme was fully funded.

Union Jack shares were up 1.13% to 0.162p at 0844 BST on Monday.