Proactive Investors - Union Jack Oil PLC (LON:UJO) executive chair David Bramhill told investors the Wressle field continues to deliver robust revenues, bolstering the AIM-quoted producer’s strong balance sheet.
The company, in a statement, reported that the 40% owned UK onshore oilfield has now generated more than $19 million net since August 2021 (when it came back online).
Production averaged 530 barrels per day in the first quarter of 2024, with water cut reported at 24.3%, which sees it as ‘the UK’s second most productive onshore oilfield’. At this level, production remains comfortably above the forecasts previously provided by consultant ERC Equipoise.
Taking the project forward, Union Jack and its partners plan new drilling, to start “at the earliest opportunity, subject to regulatory approval”, and, an application for planning permission has been submitted to the North Lincolnshire Council.
"The next stage of Wressle's development will underline the management's approach to unlocking value and further optimise production and economic returns for shareholders from our flagship asset,” Bramhill said in a statement.
"Cash flows from Wressle remain the fuel for growth going forward, providing the financial resources necessary to progress the development of assets both in the UK and USA.
At the same time, the company has seen success with drilling operations in Oklahoma – with the Andrews 1-17 well, its first in the venture, encountering its targeted Hunton limestone reservoir. Testing operations are now awaited for more detailed results.
Today, Bramhill added: "The company is in excellent financial health and well poised to take advantage of the opportunities before it.
"Given our sound financial position and the additional cash flow from Union Jack's expanding United States Mineral royalty portfolio, the board will be announcing the payment of a dividend to qualifying shareholders, details of which will be notified in May 2024."
Union Jack also noted today that it is scheduled to announce its audited results for the year ended 31 December 2023, on 20 May 2024.