Union Jack Oil plc announced its audited results for the year ending 31 December 2023.
The flagship Wressle project continues to perform well following a workover, installation of a downhole pump, and other significant site upgrades. The Wressle Competent Person’s Report has upgraded Reserves by 263%. An application has been submitted for the drilling of two back-to-back Wressle development wells and the Penistone Flags gas monetisation. Additionally, there has been a positive planning appeal decision for Biscathorpe. Union Jack Oil has sold a 2.5% interest in the offshore North Sea Claymore Area Royalty and commenced the acquisition of United States Mineral Royalties alongside drilling activities in Oklahoma. Planned drilling and development in 2024 will encompass both sides of the Atlantic. Post Balance Sheet date, the Andrews 1-17 Well in Oklahoma, USA, has been declared a commercial discovery.
Financially, Union Jack Oil reported a gross profit of £3,298,844, compared to £5,100,479 in 2022. The net profit for 2023 stood at £859,089, down from £3,606,624 in the previous year. Basic earnings per share were 0.79 pence, compared to 3.20 pence in 2022. Oil revenues were £5,065,679, a decrease from £8,507,050 in 2022. The Company continues to be debt-free. Post Balance Sheet date, a dividend of 0.25 pence per ordinary share was declared, payable on 26 July 2024.
David Bramhill, Executive Chairman of Union Jack Oil, commented on the results, expressing confidence in the Company’s solid 2023 financial performance, which underscores its financial and operational resilience. He stated that Union Jack will remain focused on the development of its flagship project, Wressle, where ambitious near-term appraisal and development programmes are planned. The Board believes that significant material upside remains within the Wressle development, which will support the Company with revenues for at least another decade.
Bramhill also highlighted progress at West Newton, noting that results from this key project indicate a potentially valuable onshore project with resources comparable to those typically reported offshore. He emphasised the importance of the significant onshore domestic gas resource at West Newton as a potential transition fuel to help the UK achieve its 2050 Net Zero target.
Regarding the Company’s activities in the USA, Bramhill remarked that Union Jack’s initial successes, including the Andrews 1-17 discovery well and the expanding Mineral Royalties portfolio, justify the Board’s decision to seek further growth opportunities internationally. He believes that further expansion in the USA, coupled with a proactive drilling campaign, will deliver material rewards.
Bramhill expressed optimism about the Company’s future, citing the advanced discussions with Reach to materially expand activities in the coming months. He is confident that the planned increase in drilling, appraisal, and development activity across Union Jack’s balanced UK and USA portfolios has the potential for significant value creation for shareholders. The anticipated additional news flow and effective investor engagement on both sides of the Atlantic are expected to continue attracting the support of existing shareholders and new investors, broadening the Company’s appeal.
In conclusion, Bramhill affirmed that Union Jack Oil is in sound financial health with a robust Balance Sheet and remains debt-free. He expressed a positive outlook for the future of Union Jack.
