11th May 2020 12:08
(Alliance News) - Union Jack Oil PLC on Monday said its loss widened in 2019 as a consequence of higher administrative expenses but it remains fully funded for its commitments.
Shares in Union Jack were up 7.8% at 0.13 pence in London at midday.
The company's pretax loss widened to GBP1.7 million from GBP1.1 million as administrative expenses rose 49% to GBP1.3 million from GBP871,489.
Loss was further widened by a GBP393,697 impairment, compared to 2018's impairment GBP205,308. However, it also reported a GBP112,500 gain on exploration write-back with no such gain the prior year.
As at May 1, Union Jack had a cash balance of more than GBP5.5 million and is debt free. It is also fully funded for of its current commitments in terms of drilling and well testing.
Executive Chair David Bramhill said: "I have no doubt that, even in these difficult times, given our attractive projects, we will achieve our goal of increasing production materially and becoming a significant mid-tier UK onshore producer in the medium term. In the meantime, I am certain that the news stream arising from the ongoing progress of our endeavours will vindicate our optimism in respect of our licence interests.
"Union Jack's wider asset portfolio is well balanced with the relevant components of production, development, appraisal and discovery and we are fully funded for all our planned commitments going forward. The future of Union Jack remains bright."
By Anna Farley; [email protected]
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