Union Jack Oil plc (LON:UJO) a UK focused onshore hydrocarbon production, development and exploration company, has announced that material landmark net revenues, in excess of US$16,000,000 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.
Union Jack holds a 40% economic interest in this development.
· Landmark US$16,000,000 revenues generated to Union Jack since re-commencement of production at Wressle during August 2021
· Well producing under natural flow with zero water cut
· Oil production stable at approximately 780 barrels per day under restricted flow
· Union Jack continues to be cash flow positive covering all G&A, OPEX and contracted or planned CAPEX costs, including any drilling activities for at least the next 12 months
· As of 13 June 2023, the Company held cash balances and short-term receivables in excess of £9,230,000 and liquid investments stood at over £2,300,000, totalling over £11,500,000
· Debt free and remains highly cash generative
· Selective share buy-back programme since commencement has bought 4.6% of shares in issue and will improve earnings per share accordingly
· Interim Dividend of 0.3 pence per share (announced 28 March 2023) to be paid on 28 July 2023
Executive Chairman of Union Jack, David Bramhill, commented: “Revenues from Wressle continue to bolster the Company’s Balance Sheet, complemented by cash-flow from the Keddington Oilfield (UJO 55% interest), where planning is in place and a side-track well is planned to be drilled.
“Since the last production update of 10 May 2023, another consistent and impressive performance from the Wressle-1 well has been recorded.
“The share buy-back and dividend programmes continue and the Company now holds 5,200,000 ordinary shares in Treasury, or 4.6% of the shares in issue, that will improve earnings per share accordingly.
“An Interim Dividend of 0.3 pence will be paid on 28 July 2023, with an ex-dividend date of Thursday 6 July 2023.
“The Company looks forward to the revised Wressle Competent Person`s Report, implementation of multiple work programmes and the drilling of wells on its project interests, all of which will be fully funded from existing cash balances and investments.”