Union Jack Oil plc (LON:UJO), a UK focused onshore hydrocarbon production, development and exploration company, has today announced its audited results for the year ended 31st December 2020.
Operational Highlights
- Successful drilling of the West Newton B-1Z conventional appraisal well where initial petrophysical evaluation has demonstrated a gross hydrocarbon saturated interval of at least 118 metres within the Kirkham Abbey formation
- West Newton B-1Z and A-2 well tests are imminent
- Following the successful re-perforation of the Ashover Grit formation at Wressle, oil is free flowing and the Wressle-1 well has been placed on continuous production test and is awaiting a proppant squeeze
- 12.5% interest acquired in PEDLs 180 and 182, containing the Wressle discovery, bringing Union Jack’s holding to 40%
- Purchase of a 35% interest in the producing Keddington Oilfield PEDL005(R) acquired, bringing Union Jack’s interest to 55%
- Completion of the purchase of a further 15% interest in PEDL253 containing the Biscathorpe Prospect bringing Union Jack’s interest to 45% during January 2021
- Purchase of a 2.5% royalty interest in the North Sea Claymore Piper and Scapa oilfields
Financial Highlights
- Increased revenue of £158,004 (2019: £136,959)
- Operating loss of £1,883,893 (2019: £1,705,198), primarily as a result of higher administrative costs due to additional technical work in respect of West Newton, Wressle, Biscathorpe and Keddington
- Cash balance in excess of £5.7 million at 1 May 2021, not including loan receivables and royalty accruals of over £1 million due during 2021 and 2022
- Net assets increased by 35% to over £18 million from £13 million in 2019
- Fully funded for all current development and well testing commitments
- Company remains debt free
David Bramhill, Union Jack Oil Executive Chairman, commented:
“My confidence in respect of Union Jack’s future remains highly positive.
“The Company, during 2020 and to date, has advanced its key projects, executed drilling, development and appraisal activity, supported by technical evaluation and analysis provided by our own highly competent technical team, that has resulted in an accretion in the Company’s asset value and provided greater clarity on the next steps towards commerciality.
“I have no doubt even in these unprecedented times, that given our attractive projects, we will achieve our goal of increasing production materially and becoming a significant, principally onshore mid-tier UK producer in due course. In the meantime, I am confident that the news stream arising from the ongoing progress at our ventures, will vindicate our optimism.
“Union Jack’s wider asset portfolio continues to be well balanced with the relevant components of production, development, appraisal and discovery.
“The Company remains in sound financial health, with a robust balance sheet, continues to be debt free, with ample cash reserves to fund its well testing and planned development commitments, offering shareholders ongoing and significant scope for growth.
“The future of Union Jack remains bright.”
CHAIRMAN’S STATEMENT
I am pleased to present to the shareholders of Union Jack Oil plc (“Union Jack” or the “Company”), the Annual Report and Financial Statements for the year ended 31 December 2020.
Union Jack’s strategy remains consistent with the objective of the Board to build a successful and sustainable, UK-focused, predominantly onshore hydrocarbon production and development business. In this respect, we have delivered demonstrable growth in asset value and 2020 has seen the continued expansion of our portfolio with what we consider to be high quality, asset value accretive project interests with substantial upside potential in our primary focus areas of the East Midlands, Humber Basin and East Yorkshire, with an expectation in 2021 of significantly increasing oil production and revenues.
The COVID-19 pandemic has meant very few, if any, companies and individuals have not felt the unwelcome consequences that have resulted from this unprecedented virus.
We continue to remain vigilant in the way we operate both technically and financially and we have tried our best to keep shareholders and our Joint Operating Agreement (“JOA”) partners informed of any changes being implemented to our operations in respect of the effects of COVID-19.
Notwithstanding COVID-19, reassuringly it has been business as usual, however, I would like to add that any forward-looking statements made within this report are made with good intent, as the effects of this virus, although perhaps are now better understood, remain unclear and expected to prevail in some form for the foreseeable future.
I am pleased to report that disruption to our projects due to COVID-19 has been minimal through 2020 and up to present time although the potential for any changes in working and planning in respect of our project interests remain possible, and we will continue to be guided by the regulatory bodies and our JOA partners in respect of COVID-19 best practice.
Marked progress was made in the year under review and in the post balance sheet events period up to the signing of these financial statements, with the highlights being:
Operational Highlights
- Successful drilling of the West Newton B-1Z conventional appraisal well where initial petrophysical evaluation has demonstrated a gross hydrocarbon saturated interval of at least 118 metres within the Kirkham Abbey formation
- West Newton B-1Z and A-2 well tests are imminent
- Following the successful re-perforation of the Ashover Grit formation at Wressle, oil is free flowing and the Wressle-1 well has been placed on continuous production test and is awaiting a proppant squeeze
- 12.5% interest acquired in PEDLs 180 and 182, containing the Wressle discovery, bringing Union Jack’s holding to 40%
- Purchase of a 35% interest in the producing Keddington Oilfield PEDL005(R) acquired, bringing Union Jack’s interest to 55%
- Completion of the purchase of a further 15% interest in PEDL253 containing the Biscathorpe Prospect bringing Union Jack’s interest to 45% during January 2021
- Purchase of a 2.5% royalty interest in the North Sea Claymore Piper and Scapa oilfields
Financial Highlights
- Increased revenue of £158,004 (2019: £136,959)
- Operating loss of £1,883,893 (2019: £1,705,198), primarily as a result of higher administrative costs due to additional technical work in respect of West Newton, Wressle, Biscathorpe and Keddington
- Cash balance in excess of £5.7 million at 1 May 2021, not including loan receivables and royalty accruals of over £1 million due during 2021 and 2022
- Net assets increased by 35% to over £18 million from £13 million in 2019
- Fully funded for all current development and well testing commitments
- Company remains debt free
PEDL183 WEST NEWTON (16.665%)
Union Jack completed a farm-in in late 2018, on licence PEDL183, covering 176,000 acres and containing the West Newton A-1 discovery, with Rathlin Energy (UK) Limited (“Rathlin”).
Since that time the JOA partners have seen excellent success in respect of subsequent drilling campaigns with both the WNA-2 and WNB-1Z wells being recorded as significant discoveries with both wells suspended and awaiting testing during Spring 2021.
PEDL183 is located onshore UK, north of the river Humber, also encompassing the town of Beverley, East Yorkshire. The licence area is within the western sector of the Southern Zechstein Basin. The West Newton A-1 and A-2 and the recent B-1Z discoveries are on-trend with the prolific offshore Hewett gas complex.
In the UK, the carbonates of the Permian Basin have been our principal targets and produced offshore and onshore in the Southern North Sea Gas Basin. These reservoirs have been extensively explored and produced onshore in the Netherlands, Germany and Poland, which provide several direct analogues for West Newton and the overall licence area.
The WNB-1Z side-track appraisal well commenced during November 2020 and reached a Measured Depth of 2,114 metres.
A substantial hydrocarbon column in excess of 118 metres gross has been demonstrated within this formation.
18 metres of core was successfully cut and recovered from the hydrocarbon bearing Kirkham Abbey formation. Production casing has been run in preparation for the testing of this interval.
Highlights
- Porosities of up to 14% observed on wireline logs
- Hydrocarbon-water contact has yet to be encountered at West Newton
- WNB-1Z well is approximately 2.5 kilometres south of the WNA-1 and WNA-2 appraisal wells, confirming extensive areal continuity of hydrocarbon trap and hydrocarbon reservoir
- Well results provides a further material de-risking and is a significant step forward in determining the development potential of the West Newton project
- Cased Hole Logging programmes and Vertical Seismic Profiling completed confirming the presence of a good cement bond of the production liner and good quality data retrieved which will be used in calculations towards reserve/resource quantification for the West Newton field and for the identification of future drill locations
The JOA partners believe that West Newton has the potential to assist in replacing the requirement for imported hydrocarbons locally while simultaneously developing indigenous energy sources, contributing to the economic welfare of the Humber region.
With the view of advancing this vision, Union Jack and its JOA partner Reabold Resources plc commissioned Gaffney, Cline & Associates Limited (“GaffneyCline”), an international energy consultancy to conduct a Carbon Intensity Study over the West Newton hydrocarbon project.
The GaffneyCline study highlighted the following:
- The West Newton project has an AA rating for Carbon Intensity for its potential upstream crude oil production
- Carbon intensities at West Newton are significantly lower than the UK average and compared with other onshore analogues
- As the development proceeds and project knowledge increases, there is scope to even further improve the Carbon Intensity by reducing fugitive flaring and venting emissions through the use of the best available technologies
Union Jack’s mission and focus is to minimise the carbon footprint generated by its hydrocarbon developments in the most efficient way possible, whilst continuing to contribute positively to the growing demand for energy and hydrocarbon products in the supply chain.
GaffneyCline have also been appointed to compile a Competent Persons Report in respect of PEDL183 and the West Newton project.
All the results to date continue to support our belief that West Newton is a large scale, conventional onshore oil and gas development asset with potential offshore-sized resources in place.
The preliminary results to date vindicate Union Jack’s faith and financial commitment over the past two years to what management has always believed to be an exceptional UK onshore hydrocarbon enterprise and development opportunity.
The imminent well testing programme is the next important milestone in determining the development potential of West Newton.
PEDL180/PEDL182 WRESSLE DEVELOPMENT (40%)
Located in Lincolnshire on the Western margin of the Humber Basin, PEDL180 and PEDL182 contain the substantial Wressle oil development, with proven reserves and significant upside.
The Wressle-1 oil discovery was defined on proprietary 3-D seismic data. The structure is on trend with the producing Crosby Warren oil field and the Broughton B-1 oil discovery, both to the immediate northwest, and the Brigg-1 discovery to the southeast. All these wells contain oil in various different sandstone reservoirs within the Upper Carboniferous succession.
The well was drilled and logged and the presence of hydrocarbon pay was noted within the Penistone Flags, Wingfield Flags and Ashover Grit intervals. Subsequent testing of these intervals demonstrated flow from all three zones.
During January 2020, the JOA partners received the welcome news that, after several years of planning setbacks in respect of the development of the Wressle discovery, the Planning Inspectorate had upheld the appeal and granted planning consent for the development of this company changing project. The Inspector also allowed the application for an award of costs against the North Lincolnshire Council (“NLC”). Subsequently, the NLC has paid costs of £403,000. Union Jack has received its proportion of this payment from the Operator.
Excellent progress has been made at Wressle, culminating in commencement of oil-flow at the end of January 2021, following the installation of cutting-edge, purpose-built surface facilities and the successful re-perforation of the Ashover Grit, one of three reservoir intervals. The well is currently undergoing test production with oil sold and transported to the Phillips 66 Humber refinery.
The well test results to date are in line with expectations and consent for a proppant squeeze in respect of the next stage of operations is awaited. At optimum production levels Wressle-1 is projected to produce at a gross rate of a constrained 500 barrels of oil per day (“bopd”), adding a net 200 bopd to Union Jack’s production profile.
Translated into 2P and 2C reserves and resources, using figures quoted from the Competent Person’s report compiled by ERCE during 2016, the net volumes attributable to Union Jack are as shown in the table as shown below.
Gross and Net Volumes of Wressle Hydrocarbons Attributable to Union Jack
| Gross Volumes | Net Volumes Attributable to Union Jack | |||||
| OIL MMSTB | GAS BCF | OIL EQUIV MMBOE | OIL MMSTB | GAS BCF | OIL EQUIV MMBOE | |
| 2P Ashover Grit and Wingfield Flags | 0.62 | 0.2 | 0.65 | 0.25 | 0.08 | 0.26 |
| 2C Penistone Flags | 1.53 | 2 | 1.86 | 0.61 | 0.8 | 0.75 |
| Broughton North Mean Unrisked Prospective Resources | 0.51 | 0.51 | 0.6 | 0.2 | 0.2 | 0.24 |
| Source: CPR by ERCE (2016) |
The Economic Growth Plan for North Lincolnshire champions the growth and diversification of the Humber chemical and energy cluster, currently contributing some £6 billion to the economy. Industries include petrochemicals, commodity and speciality chemicals, composite materials, pigments and paints, wind turbines and pharmaceuticals, and a raft of other associated industries employing circa 15,000 people in at least 120 companies. Petroleum remains fundamental to these locally important industries, including in the manufacture of items such as wind turbines for the renewable energy sector which rely upon composite materials involving petroleum products, as do many industrial applications.
Oil produced at Wressle is now contributing to these industries and benefiting the region as a whole, as well as further afield in the UK. Oil produced at Wressle is also helping offset international oil imports typically shipped over long distances, as the oil is refined nearby in Immingham, keeping trucking and transportation to a minimum, and consequently reducing the overall carbon footprint and greenhouse gas emissions.
In June 2020, the Company acquired a further 12.5% interest from Humber Oil & Gas Limited (“Humber”) in PEDLs 180 and 182 containing the Wressle development project for an initial cash consideration of £500,000 with a deferred cash consideration element of £1,040,000 payable to Calmar LP, appointees of Celtique Energie Petroleum Limited (the original vendors in the acquisition by Humber) on commercial oil production being established. Following this transaction the Company now holds a 40% interest in PEDLs 180 and 182.
PEDL253 BISCATHORPE (45%)
PEDL253 is situated within the proven hydrocarbon fairway of the South Humber Basin and is on-trend with the Keddington oilfield, Saltfleetby gasfield and the Louth and North Somercotes Prospects.
In February 2019, the Biscathorpe-2 well was drilled and logging operations were conducted. Preliminary analysis indicated that the primary objective, the Basal Westphalian Sandstone, was not encountered at this location.
However, this result has subsequently been turned full circle, driven by the determination of the respective technical teams and their detailed technical analysis that has demonstrated that PEDL253 is a viable hydrocarbon play. Union Jack’s technical team believe that Biscathorpe remains one of the largest untested onshore prospects within the UK.
In support of this interpretation, the JOA partnership completed extensive and detailed studies of the Biscathorpe Prospect, including the re-processing and re-mapping of 264 square kilometres of 3-D seismic. This exercise has significantly enhanced the understanding of the prospectivity over the licence area.
Accessible targets have also been identified where evidence for a thickened Westphalian sandstone reservoir exists. These targets can be drilled using a side-track from the existing Biscathorpe-2 well which was suspended once site operations were concluded in 2019.
The Gross Mean Prospective Resources associated within the Westphalian target area are estimated by the Operator, in accordance with 2018 PRMS Standard, to be 3.95 mmbbls of oil, with an upside case of 6.69 mmbbls. Preliminary economic modelling demonstrates that the Westphalian target is economically robust in the current oil price environment with a full cycle economic valuation of £55.6 million gross (NPV10%) and a US$18.07 per bbl breakeven oil price.
While drilling the B-2 well, there were hydrocarbon shows indicated by elevated gas readings and sample fluorescence, observed over the entire interval from the top of the Dinantian to the Total Depth (“TD”) of the well (an interval of over 157 metres), with a total of 68 metres interpreted as being oil bearing in the petrophysical analysis.
A geochemical analysis of the gas data and hydrocarbons extracted from drill cuttings was originally commissioned by Union Jack and carried out by Applied Petroleum Technology (UK) Limited (“APT”). The results of this analysis indicate a hydrocarbon column of 33¼-34¼ API gravity oil in the Dinantian Carbonate and a proven likely live oil column, comparable with that produced at the nearby Keddington oilfield.
Following the results of the APT exercise, an assessment of the Dinantian oil volumes was modelled with volumetric assumptions as being ‘filled to spill’ with resulting Mean Stock Tank Oil Initially in Place (“STOIIP”) within the Dinantian calculated to be 24.3 mmbbls with an upside case of 36 mmbbls.
The JOA partnership now proposes to drill the Biscathorpe B-2Z conventional side-track well targeting the Westphalian and the oil column logged in the underlying Dinantian Carbonate.
In February 2021, a Planning Application was submitted to the Lincolnshire County Council for a proposed side-track drilling operation, associated testing and, in a success case, the long-term production of hydrocarbons at the Biscathorpe well site.
In June 2020, Union Jack were advised that a legally binding and confidential settlement agreement between Egdon Resources and the JOA parties in respect of PEDL253 resolving a dispute with Humber, had been signed.
In January 2021 and subsequent to the year end, Union Jack purchased a further 15% of PEDL253 for an initial cash consideration of £500,000 from Humber, bringing the Company’s interest to 45%. Following receipt of various planning approvals, a further contingent cash payment of £500,000 will become payable to Humber.
PEDL241 NORTH KELSEY (50%)
North Kelsey is a conventional oil prospect along trend from and analogous to the Wressle oil development, which lies approximately 15 kilometres to the northwest. The prospect has been mapped from 3-D seismic data and has the potential for oil in four stacked Carboniferous reservoir targets. The Operator estimates that the Gross Prospective Resources range from 4.66 million barrels up to 8.47 million barrels of oil, with a Mean Resource volume of 6.47 million barrels.
During September 2020, the existing planning consent was extended by the Lincolnshire County Council. Requisite permits for drilling have also been received from the Environment Agency.
In October 2020, the Company announced a further acquisition of 30% of PEDL241 and the alignment of equity interests in that licence with the Operator, Egdon Resources U.K. Limited, and to jointly pursue a farm-out for the drilling of the North Kelsey-1 exploration well.
Under the terms of the agreement, Union Jack acquired a 30% interest in the licence for a cash consideration of £100,000, that was paid on completion, subsequent to the year end. The Company’s previous farm-in obligations in respect of the 20% the Company held lapsed and all future financial obligations will be executed on an equal basis with the Operator.
PRODUCTION ASSETS
Union Jack’s portfolio includes licence interests in two production assets, PEDL005(R) (55%) and EXL294 (20%) containing the Keddington and Fiskerton Airfield oilfields, respectively.
Combined production of high-quality oil from these two assets is averaging 50 barrels of oil per day gross from Carboniferous age sandstone reservoirs.
A further production asset, the Wressle-1 discovery well within PEDL180 and PEDL182 is currently under test production and awaiting further process was added to Union Jack’s production portfolio in early 2021. An operational update in respect of Wressle can be found earlier within this statement.
Keddington is located along the very prospective East Barkwith Ridge, an east-west structural high on the southern margin of the Humber Basin.
A detailed, subsurface review of the Keddington field and the surrounding licence area was conducted by Egdon and Union Jack during 2019, resulting in a fully audited and consistent data set that supports updated resource estimates generated by the Operator.
These geological and geophysical studies indicate that potentially significant resources remain unswept at Keddington, highlighting an excellent opportunity to increase production volumes multi-fold by the drilling of a relatively inexpensive development well from the existing production site. The gross remaining Mean Contingent Resource at Keddington is 567,000 bbls of oil (311,000 bbls net to Union Jack).
The Operator is finalising the assessment of potential in-fill drilling locations at Keddington with a view to targeting a side-track drilling location.
The Keddington site lease has been extended until 2029, and planning consent expires in 2058, with approval in place for the drilling of a further two wells.
In addition to the unswept resources at Keddington, a near-field exploration opportunity exists at Keddington South, which has a gross Mean Prospective Resource Volume of 635,000 bbls of oil (349,250 bbls net to Union Jack).
During March 2020, Union Jack acquired a further 35% economic interest in PEDL005(R) from Terrain Energy Limited, increasing its holding to 55%. The consideration in respect of the acquisition was £200,000, financed from existing cash resources. This transaction provided an immediate uplift in oil production which had a beneficial effect when consolidated into the production revenues from Fiskerton Airfield.
Production at Fiskerton Airfield remains consistent and the focus will continue to be the maximising of oil output from the existing wells.
OTHER LICENCE INTERESTS
Union Jack holds licence interests in a number of other non-core projects outlined below.
An interest is held in PEDL118 Dukes Wood (16.67%) and PEDL203 Kirklington (16.67%). The JOA partners are examining the geothermal potential of these licences. These licence interests were fully impaired during the 2020 financial year.
PEDL201 Widmerpool Gulf (26.25%), formerly known as Burton-on the-Wolds, contains significant unconventional Bowland Hodder potential. This asset was fully impaired during 2019.
PEDL181 Humber Basin (12.5%) is located within the Humber Basin and holds unconventional upside. This licence was fully impaired during 2019.
An interest is held in PEDL209 Laughton (10%). The Company is currently in the process of withdrawing from this licence interest.
NORTH SEA ROYALTIES
Post period end, during March 2021, the Company purchased a 2.5% royalty interest over the Claymore, Piper and Scapa oilfields located in the Central North Sea from Cambridge Petroleum Royalties Limited for a total consideration of £93,730 including working capital adjustments.
Management view this purchase as an attractive, cash generating and high yielding investment, consistent with Union Jack’s wider strategy and objectives to invest in the UK oil and gas sector.
This particular transaction generates a compelling estimated Internal Rate of Return of approximately 129% and payback, including accrued royalty payments of the original investment is anticipated to be less than 12 months.
The Company benefits from an indirect contractual exposure to North Sea oil and gas production revenues without any ongoing capital investment, decommissioning or joint venture operating costs.
This acquisition within this area represents our first investment in the Claymore Piper Complex and the Board has the objective of pursuing further interests in this asset.
COVID-19 STATEMENT
Following the outbreak of Coronavirus (COVID-19) during 2020, the priority of the Company has been on the health and safety of its employees and technical staff. Like many organisations, plans have been implemented and active measures have been taken to mitigate risk, such as no one-to-one contact and numerous telephone and video meetings. The Board is also in frequent contact with the Company’s JOA partners and our external technical team to assess any potential impact on the assets in which the Company has invested.
We continue to follow the most up-to-date Government advice and engage with the regulatory bodies and stakeholders.
To date, the exploration, development and production activities of the Company have continued in line with plans and with minimal impact from COVID-19.
However, the Company recognises COVID-19 and associated geo-political factors have created uncertainty around the price and demand for oil.
The Board does not currently plan to make changes going forward. However, the Board continues to monitor the situation closely and will, with its JOA partners, make adjustments if and when appropriate.
I would like to bring to the attention of shareholders the Notice of Annual General Meeting (“AGM”) within this Annual Report. We will be holding the AGM on Thursday 24 June 2021. The Company wishes to advise that in order to limit the risk of infection and to protect the health and safety of shareholders and employees, shareholders are strongly recommended not to attend the AGM.
I would like to re-assure shareholders that their engagement in the AGM process is welcomed. The Board has proposed that a remote pre-AGM question and answer event is made available. Please email your questions to [email protected]. All questions will be answered before the time of the AGM via our Company website: www.unionjackoil.com.
The Company encourages shareholders to appoint the Chairman as their proxy with their voting instructions. Forms of Proxy must be received by no later than 48 hours before the commencement of the meeting.
The Company will continue to monitor the pandemic and if Government advice dictates that further changes to the arrangements for the AGM are necessary, details will be published on the website and via a Regulatory Information Service.
CORPORATE AND FINANCIAL
The September 2020 oversubscribed placing and subscription for £7 million before expenses has enhanced the financial well-being of the Company and strengthened our Balance Sheet. With the resulting cash injection, the Company currently has more than adequate monies in place to fund our share of testing the West Newton A-2 and West Newton B-1Z wells and the ongoing development of the Wressle production site.
Union Jack remains debt free and had a cash balance at 1 May 2021, in excess of £5.7 million, not including loan receivables and royalty accruals of over £1 million due during 2021 and 2022.
The 2020 oil price crash and COVID-19 pandemic were the catalyst for falling activity within the industry sector, however, Union Jack used these circumstances to purchase additional assets at attractive prices to further expand the Company’s portfolio interests. Encouragingly, during the period under review, our net assets increased significantly from circa £13 million in 2019, to in excess of £18 million, demonstrating a material increase of over 35% during the year.
We continue to identify and add value-accretive asset interests to our portfolio and execute a very rigid technical and financial regime, thus adding value to the Company and its shareholders.
Post period end, during March 2021, the Board made the decision to consolidate the ordinary shares of the Company on a 200 for one basis. The directors unanimously believed that the previous share capital structure was no longer acceptable and that it was an appropriate time to consolidate the shares in issue as the Company was, and remains, in an excellent financial and operating position, given the progress made in recent years on its key projects, namely, West Newton, Wressle and Biscathorpe.
In April 2021, Union Jack launched a new state-of-the-art corporate website. The Board hopes that this new website will turn web searchers into visitors and those visitors into new shareholders.
I would like to thank our shareholders for their continued support, as well as my colleagues and co-directors, who provide invaluable advice and continue to champion the development of the UK onshore hydrocarbon industry for the benefit of both Union Jack and the wider economy.
I would also like to thank our wider suite of professional advisers, who have contributed to the efficient running of Union Jack, and have enabled us to engage with investors to source essential funding which enables our core projects to move forward and create additional value.
OUTLOOK
My confidence in respect of Union Jack’s future remains highly positive.
During 2020 and to date, the Company has advanced its key projects, executed drilling, development and appraisal activity, supported by technical evaluation and analysis provided by our own highly competent technical team. This has resulted in an accretion in the Company’s asset value, delivered demonstrable progress and provided greater clarity on the next steps towards commerciality of its projects.
I have no doubt, even in these unprecedented times that we will achieve our goal of increasing production materially and so continue to make meaningful progress towards becoming a significant, principally onshore mid-tier UK producer in due course. In the meantime, I am confident that the news stream arising from the ongoing progress in our many attractive ventures will vindicate our optimism.
Union Jack’s wider asset portfolio continues to be well balanced with the relevant components of production, development, appraisal and discovery.
The Company remains in sound financial health, with a robust balance sheet, continues to be debt free with ample cash reserves to fund its well testing and planned development commitments, offering shareholders ongoing and significant scope for growth.
The future of Union Jack remains bright.
David Bramhill
Executive Chairman
17 May 2021
