LONDON (ShareCast) - (Sharecast News) - UK-focussed onshore hydrocarbon explorer, developer and producer Union Jack Oil announced on Wednesday that material landmark net revenues of $12m have been achieved from the Wressle development, 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 said the landmark figure of $12m in revenues had been generated to Union Jack since the restart of production at Wressle on 19 August 2021.

The board said the well was continuing to produce under natural flow with zero water cut, while site upgrades were ongoing.

A utilisation plan for the associated gas from the Ashover grit reservoir was currently underway.

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 2 January, cash balances, short-term receivables and liquid investments stood at more than £9.91m, after a total maiden special dividend payment topping £0.9m during December, and recent Wressle site upgrades of £0.25m net to Union Jack.

Unaudited revenues from 1 January to 30 December 2022, meanwhile, stood in excess of £8.4m, up from an audited £1.89m year-on-year, while the firm remained debt-free.

"The revenues of in excess of $12m from the Wressle development continue to bolster the company's balance sheet," said executive chairman David Bramhill.

"Since the last production update, another 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.

"Cash balances are expanding significantly on a monthly basis, and we are funded for general and administrative, operational and contracted or planned capital and expenditure costs, including any drilling activities for at least the next 12 months."

At 1459 GMT, shares in Union Jack Oil were up 1.81% at 26.98p.

Reporting by Josh White for Sharecast.com.

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