Union Jack Oil plc (LON:UJO), a UK focused onshore conventional hydrocarbon production, development and exploration company, has announced that material landmark net revenues of US$11,000,000 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. Union Jack holds a 40% economic interest in this development.
· Landmark US$11,000,000 revenues generated to Union Jack since re-commencement of production at Wressle on 19 August 2021
· Well continues to produce under natural flow with zero water cut
· Site upgrades ongoing and gas monetisation plan in place for both Ashover Grit and Penistone Flags reservoirs
· Union Jack continues to be cash flow positive covering all G&A, OPEX and contracted or planned CAPEX costs, including any drilling activities or work programme commitments for 2023 and into 2024
· At 11 November 2022, cash balances, short- term receivables and liquid investments stood at over £10,800,000
· Unaudited Q3 2022 accounts show a further profitable period for the Company
· Unaudited revenues from 1 January 2022 to date are in-excess of £7,900,000 (Audited 2021: £1,894,875)
· Debt free
· Maiden Special Dividend of 0.8 pence per Ordinary share announced
· Share buy-back programme initiated, boosting Earnings per Share
Executive Chairman of Union Jack, David Bramhill, commented: “The revenues of in-excess of US$11,000,000 from the Wressle development continue to bolster the Company’s Balance Sheet.
“Since the last production update, another impressive performance from the Wressle-1 well has been recorded and the trend, as seen throughout 2022 remains positive.
“Cash balances are expanding significantly on a monthly basis and we are funded for G&A, OPEX and contracted or planned CAPEX costs, including any drilling activities or work programme commitments, for 2023 and into 2024.
“We are pleased to have announced a maiden special dividend of 0.8 pence per ordinary share, payable on 16 December 2022, as well as the commencement of a share buy-back programme where the Company controls the number of shares to be bought, within the authorities approved at the Annual General Meeting in June 2022.
“Your Company has achieved a number of significant milestones during 2022, which include a strengthened balance sheet, cash generation, profitability, and an upgraded reserve and resource base.
“We have high expectations that this strong performance will continue for the foreseeable future.”