Union Jack Oil Plc (LON:UJO) is the topic of conversation when we caught up with Dan Slater, research Director at Zeus Capital. We asked:
Union Jack Oil released this week its FY 2022 results, what were the key financial highlights in your opinion?
The 2022 results showed the significant benefit of a full year of Wressle production, taking advantage of high oil prices. Revenues of £8.5m and EBITDA of £5.6m have funded the CAPEX programme and left the cash holding at £8.7m at the end of 2022, highlighting significant ongoing funding capacity.
How did the company perform operationally?
The Wressle find continues to be progressed, with onsite gas fired power now installed, further power/gas export infrastructure planned, and a second production well potentially to be drilled in H2 2023. Preparations are also underway for the important horizontal test well at West Newton, also in H2 2023, alongside planning permission for the Biscathorpe and North Kelsey wells, which should make for a full forward work programme overall.
How do you see the outlook for Union Jack Oil?
In our view, the existing cash and ongoing cash flows support a full forward work programme across the company’s portfolio, providing news flow and the potential for resource and production additions. Providing these work programme items come through, it should be a busy period for the company.
Union Jack Oil plc is a UK registered company, focused on the exploration and future development of the hydrocarbon project interests held by the Company.
