23rd Sep 2019 12:34
(Alliance News) - Union Jack Oil PLC on Monday said its loss was slightly wider in the first half of 2019 as a result of administrative expenses but expressed optimism regarding the Wressle project in Lincolnshire.
The UK-focused onshore oil and gas firm reported a pretax loss of GBP484,068 for the six months ended June 30, widened from GBP418,759 the year before as total administrative expenses rose 9.8% to GBP441,976 from GBP402,469.
Revenue increased 4.6% to GBP76,409 from GBP73,044.
As at September 20, Union Jack's cash balance exceeded GBP2.8 million and the firm was debt free.
Executive Chair David Bramhill said: "We have seen significant progress at our three key project interests, namely West Newton, Biscathorpe and Wressle. Developments at these three assets can be expected to provide an active stream of newsflow throughout the remainder of 2019 and beyond.
"At West Newton A-2, the result of the extended well test has the potential to dramatically transform Union Jack. We anticipate further progress in our ongoing technical evaluation and appraisal of the West Newton A-1 and A-2 discoveries in the coming months that will help us confirm that West Newton is one of the largest onshore UK oil and gas ventures in recent decades.
"An ongoing technical evaluation at Biscathorpe also has the potential to identify a material resource with significant upside, as in the case of West Newton."
Union Jack holds a 28% interest in Wressle, where it has been confirmed that an appeal against denial of planning permission for the field will not go to court. North Lincolnshire Council confirmed on July 29 it will not be presenting evidence at the public inquiry, and will withdraw its case.
Bramhill said: "Assuming our appeal at Wressle is supported and production from Wressle is established, under the current oil price environment, Wressle would provide material cash flows after project operating costs net to Union Jack. Bearing in mind Union Jack's modest annual general and administrative costs, Wressle is expected to convert Union Jack into a cash flow positive company at the corporate level.
"The board remains both confident and optimistic and the future of Union Jack looks bright."
Shares in Union Jack were marginally lower at 0.26 pence on Monday at midday in London.
By Anna Farley; [email protected]
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