26th Aug 2022 09:27
(Alliance News) - Union Jack Oil PLC on Friday said its Wressle hydrocarbon development in North Lincolnshire has generated a "landmark" USD9.0 million revenue from production since August last year.
Shares in the Bath-based UK-focused oil and gas company were up 2.8% to 31.62 pence each in London on Friday morning.
Wressle is located within licences PEDL180 and PEDL182 in North Lincolnshire on the western margin of the Humber Basin.
Union Jack holds a 40% interest in the development, whilst Egdon Resources PLC and Europa Oil & Gas Holdings PLC both hold a 30% stake.
Union Jack said the well continues to produce under natural flow with zero water cut.
Further, on Thursday, Union Jack's cash balance and short term receivables stood at over GBP9.5 million and the company was debt free. This compares to a cash balance of GBP4.7 million at June 30, 2021.
It expects the company to be cash flow positive for the at least the next 12 months, whilst covering operating and capital expenditure as well as administrative costs, it added.
Executive Chair David Bramhill said: "Since the last production update published during July 2022, another impressive production performance from the Wressle-1 well has been recorded and the trend remains positive.
"We look forward to reporting a positive set of half yearly results for the period ending June 30, 2022, recording a maiden profit, in mid-September 2022," Bramhill added.
By Sophie Rose; [email protected]
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