Union Jack Oil’s executive chair, David Bramhill, remains confident that the Wressle oil field is poised for its most productive phase, despite recent setbacks. The company recently confirmed that its request for an extension of the Wressle oil field had been denied due to concerns over greenhouse gas emissions, following a decision by North Lincolnshire Council. This planning permission had originally been granted in September 2023 but was revoked after the council failed to adequately assess the environmental impact, particularly concerning ‘scope three’ emissions.
While the denial of the extension was a significant setback, Bramhill maintains that the field is still on track for strong future performance. The company, which holds a 40% interest in Wressle, reported cumulative revenues of over US$22 million from the project to date. Bramhill expressed his belief that the field’s most productive phase is still to come, reflecting the company’s long-term optimism despite recent challenges.
The Wressle extension was one of the first developments to be impacted by the Finch ruling in June, which centred on the need for authorities to consider emissions throughout the entire value chain. This ruling has led to a reassessment of other oil projects, including the Horse Hill oil project near Gatwick Airport, where similar issues arose. In response to the planning decision, Union Jack Oil has stated that the operator, Egdon Resources UK, will need to request a new planning opinion, incorporating a thorough analysis of the ‘scope three’ emissions before a final decision is made.
Importantly, the revocation of the extension does not affect the existing planning consent for the Wressle oil field, and production is continuing as usual. The company reassured stakeholders that this development would not harm its ongoing operations or its partners’ interests.
Stockbroker Shore Capital, which tracks Union Jack Oil, updated its valuation for the company following recent developments, highlighting that the Wressle field continues to generate cash flow. Their updated estimate includes a modest contribution from the recently drilled Taylor well in Oklahoma, which adds to Union Jack’s overall value.
While the challenges surrounding Wressle’s expansion are significant, Union Jack Oil remains committed to the long-term success of the field, with management confident that the best is yet to come.
