Union Jack Oil plc (LON:UJO) a UK focused onshore hydrocarbon production, development and exploration company, on Monday 28th announced that material landmark net revenues of US$4 million have been achieved from the Wressle hydrocarbon development, located within licences PEDL180 and PEDL182 in North Lincolnshire on the western margin of the Humber Basin.
DirectorsTalk Managing Director Darren Turgel caught up with Research Director and Head of Energy at Arden Partners Dan Slater to discuss the news.
Union Jack released an update on its Wressle field today, what were the key takeaways for investors?
This was evidence of further helpful revenue for Union Jack, demonstrating the benefit from higher oil prices and giving the company additional optionality going forward as it progresses its work programme plans.
How do you view the company in terms of an investment case?
Union Jack has a collection of onshore UK assets which could all generate work programmes over the coming months and years. At Wressle, we should soon get plateau production rates post the ongoing upgrade works. At West Newton, we may get a new work programme, targeting establishing commercial flow rates, now that new planning permissions have been received. We may also see new drilling on Biscathorpe and North Kelsey. This all gives the company the potential to add resource value, while also generating catalysts for the shares.
How do you view the outlook for Union Jack Oil?
We expect ongoing cash flows from Wressle, and further clarity on forward work programmes across the portfolio, hopefully underpinning new catalysts for the shares.
Union Jack Oil plc (LON:UJO) is an onshore oil and gas exploration company with a focus on drilling, development and investment opportunities in the United Kingdom hydrocarbon sector listed on the London Stock Exchange AIM market.
